Tech development company Hazer (ASX: HZR) is advancing its presence in the clean energy sector with the Hazer Process. This proprietary process focuses on converting natural gas and methane feedstocks into hydrogen and advanced carbon materials, utilising iron ore as a pivotal catalyst.
One significant indicator of Hazer’s progress in the low-cost, low-emission hydrogen technology realm is the Commercial Demonstration Plant (CDP). This milestone project is currently on track for a 2023 startup.
The Company recently completed the replacement heat exchanger installation and the early commissioning of the CDP furnace before construction completion. Additionally, crucial work on the hot wall reactor is progressing well, with final machining and assembly scheduled for delivery in early November.
The CDP marks a world-first demonstration of thermo-catalytic methane pyrolysis (a chemical process that breaks down components). It represents a promising avenue for industries and climate technologies looking to reduce emissions and costs.
Hazer Managing Director Glenn Corrie said, “Our focus this quarter has been on driving forward the final stages of our Commercial Demonstration Plant, where we made material progress with the successful installation of the replacement heat exchanger and near completion of the machining and assembly of the reactor. We remain on schedule for start-up this year and are excited to be in the concluding stages of construction and preparing for the commissioning and start-up phase.”
Significant progress has been made following the installation of the heat exchanger equipment and de-risking the startup schedule. For starters, the Company completed hot reactor welding, the critical Post-Weld Heat Treatment (PWHT), and the successful Non-Destructive Testing (NDT) to confirm fabrication quality. The hot reactor assembly is currently in its final stages.
Concurrently, the construction and installation of the remaining equipment, including the furnace, hot heat exchangers, and auxiliary components, have been finalised. This has enabled the early commissioning of the furnace and blowers before construction completion.
As a result, the startup schedule is significantly less risky. A detailed start-up and performance testing program has been formulated, focusing on critical operating parameters for technology validation and commercial deployment.
Corrie added, “Our successful capital raise strengthens our liquidity, enabling us to operationalise our CDP as planned and concurrently execute our growth strategy, accelerating the commercial scale-up of our disruptive technology.”
In addition to their CDP endeavours, Hazer is engaged in the Hazer-BC Project in Vancouver, British Columbia, Canada. This collaborative venture aims to establish a commercial Hazer plant that can produce up to 2,500 tonnes of hydrogen per annum (TPA), signifying a substantial scale-up compared to the CDP.
However, sustainable energy company Suncor has withdrawn from the project due to a corporate strategy and portfolio review. FortisBC and Hazer will continue to work on their project.
As of September 30, 2023, Hazer reported available funds of $15.1 million despite witnessing net operating cash outflows of $4.9 million during the quarter.
Alinda is a Business Reporter for The Sentiment
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