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Introduction & Market Context
Hazer Group Ltd (ASX:HZR) presented its Q3 FY25 Investor Webinar on April 16, 2025, highlighting the company’s progress in commercializing its clean hydrogen technology amid a shifting market landscape. The presentation emphasized Hazer’s position as a leader in methane pyrolysis, a technology gaining traction as an alternative to both carbon-intensive "grey" hydrogen and the slower-than-expected rollout of "green" hydrogen.
The global hydrogen market currently stands at 97 million tonnes per annum (MTPA), valued at approximately US$200 billion. However, 95% of this production is "dirty" hydrogen generated through carbon-intensive processes that emit around 920 million tonnes of CO2 annually. Industry forecasts suggest hydrogen demand will increase by 168% by 2050, reaching 260 MTPA, creating significant opportunities for cleaner production technologies.
As shown in the following chart of global hydrogen demand outlook:
Quarterly Performance Highlights
Hazer Group reported a strengthened financial position for Q3 FY25, with cash holdings of $10.3 million as of March 31, 2025, representing an increase of over $1 million from the previous quarter. The company’s total liquidity stands at $12.6 million, which includes the remaining $2.3 million in LCG funds. Notably, Hazer maintains a debt-free balance sheet, with funding bolstered by non-dilutive grant inflows and revenue from the Canada project.
A significant milestone during the quarter was the confirmation of the Commercial Demonstration Plant (CDP) as commercially ready following detailed evaluation. This was further validated by Lloyds (LON:LLOY) Register, which provided independent verification of process and operational stability. The company also secured important patents in the United States and Japan for the Hazer Process, strengthening its intellectual property portfolio that now includes over 70 patents across more than 30 jurisdictions.
The following slide summarizes the key Q3 FY25 highlights:
Strategic Initiatives
Hazer’s strategy centers on a three-phase approach: commercialize, scale-up, and monetize & grow. The company is currently executing its scale-up strategy in hard-to-abate sectors, with several initiatives underway to accelerate commercial deployment.
A key focus is the development of a large-scale commercial reactor program capable of producing over 20,000 tonnes per annum (ktpa) of hydrogen. To support this effort, Hazer has engaged global fluidization experts from the Particulate Solids Research Institute (PSRI) to accelerate scale-up while reducing associated risks. The company’s fluid bed reactor technology provides a competitive advantage in achieving the scale necessary to meet growing industry demand.
The company’s scale-up strategy is illustrated in the following diagram:
The Canada project with FortisBC continues to advance, with the successful completion of a commercial reactor test program. This project achieved performance milestones under the government grant funding agreement, and pre-FID (Final Investment Decision) payments have been received under the engineering services agreement. Site selection is progressing with several locations being evaluated, and FID is targeted for 2025.
Progress on the Canada project is shown in the following image:
Hazer has built a strong and diversified customer pipeline representing over 1 million tonnes per annum of total capacity, equivalent to approximately 1% of existing global hydrogen demand. The company reports over 40 customer, strategic partnership, and investor opportunities across various regions and industry sectors. This diversification helps reduce risk while positioning Hazer to capitalize on growing demand across multiple markets.
The following pie charts illustrate the company’s customer pipeline diversification:
Forward-Looking Statements
Looking ahead to the remainder of 2025, Hazer Group has outlined six strategic priorities focused on accelerating to scale. These include commercializing technology through reactor scale-up and unlocking the value potential in graphite products; accelerating scale-up through the Canada project FID and progressing existing commercial portfolio; and pursuing growth and monetization through strategic partnerships and new licensing deals.
The company’s 2025 strategic priorities are detailed in the following slide:
Hazer’s investment case centers on its low-cost, clean hydrogen technology with a strong competitive advantage. The company emphasizes that its technology is commercially ready today and can co-locate with end-user infrastructure. Its "capex-lite" license model is designed to unlock early cash flow, supported by tier-1 global partnerships across strategic markets.
The investment case is summarized in the following slide:
During the earnings call, CEO Glenn highlighted the industry shift toward methane pyrolysis, stating, "We’re a global leader in this space," while noting that "95% of that 97,000,000 tons is dirty hydrogen," emphasizing the market opportunity for Hazer’s clean hydrogen solution. The company remains well-positioned to capitalize on the growing demand for clean hydrogen technologies, particularly as traditional industries seek cost-effective decarbonization solutions.
With its strong cash position, validated technology, and expanding customer pipeline, Hazer Group appears poised to execute its commercialization strategy in a rapidly evolving hydrogen market. The company’s focus on strategic partnerships and government engagement further supports its ambition to deploy 10 projects over the next decade, potentially capturing a meaningful share of the growing clean hydrogen market.
Full presentation:
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