Hazer Group (HZR) Investor Update summary

Strategic alliance overview

• Entered a binding, exclusive six-year alliance with KBR to accelerate commercialization and licensing of methane pyrolysis technology, targeting global ammonia and methanol markets.

• KBR contributes AUD 3 million upfront to the work program, supporting a capital-light, license-based business model and preserving funding position.

• The partnership provides clear revenue visibility, de-risks the business plan, and leverages KBR’s global execution, resources, and market reach.

• KBR will not work with other methane pyrolysis providers in ammonia and methanol, validating the technology and ensuring exclusivity.

• The agreement is binding, automatically extendable, and targets multiple license agreements over the next six years.

Technology and market positioning

• Hazer's methane pyrolysis process produces clean hydrogen and valuable graphite with low emissions, using iron ore as a catalyst.

• The technology is cost-competitive with blue and green hydrogen, producing hydrogen at around $1/kg in the US, and offers further optimization potential.

• Methane pyrolysis bypasses CO2 emissions of traditional methods, integrating with existing supply chains and addressing CO2 intensity of current hydrogen supply.

• Ammonia and methanol production represent over 50% of current hydrogen demand, with both markets expected to triple by 2050.

• KBR’s dominant position in ammonia and methanol, with over 50% global ammonia capacity, provides immediate access to a vast customer base.

Business model and commercialisation pathway

• The license-based, capital-light model enables early and recurring revenues from feasibility through to production, with no major capital outlays.

• Hazer has progressed from lab-scale testing to a commercial demonstration plant, with commercial projects planned from 2025 onward.

• The current opportunity pipeline includes nearly 50 projects and exceeds 1 million tonnes per annum of hydrogen capacity, diversified across regions and sectors.

• The 12-month plan includes developing a process design package, joint licensing framework, and active market engagement.

• The partnership de-risks and accelerates the existing project portfolio, supporting the goal of 10 licenses in 10 years.