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Hazer Group (ASX: HZR) has this week entered a non-binding MOU to support the development of Australia’s first new steel mill in more than 30 years. The MoU includes graphite offtake terms with steel mill developer Green Steel of WA Collie, which is advancing a low-emissions steel mill south of Perth.
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Set to produce sustainable steel rebar from recycled scrap steel for domestic and international consumption, the country-first mill is expected to commence construction from late CY26, with early operations then targeted for CY28. When completed, it will be Western Australia’s first steel mill.
Hazer’s CEO and MD, Glenn Corrie, said the offtake represents a major milestone and a significant step forward for its graphite monetisation strategy.
“At current anthracite prices, this deal has the potential to be a long-term, high-value contract for Hazer,” Mr Corrie explained today.
“This deal is another endorsement of Hazer’s competitive advantage and direct applicability to low-emissions steel manufacturing and builds on recent collaborations relating to the decarbonisation of this sector.
“Our inbounds keep coming from a variety of different industrial consumers seeking to decarbonise their businesses,” he added.
“I attribute that to the fact we are signing deals and the industry is taking notice.
“We are energised by our role in decarbonising steel making and the momentum for the Hazer Process to be scaled both domestically and internationally.”
Hazer’s patented technology produces low-emissions hydrogen and graphite from natural gas without generating carbon dioxide as a by-product. For every tonne of hydrogen produced in the process, around 3.5 tonnes of high-purity graphite are generated, creating two valuable product streams.
“This low-emissions process and dual-output capability creates a compelling technical and economic fit for the decarbonisation of the iron and steelmaking pathway,” Mr Corrie said.
Under the graphite LOI, graphite will be supplied by Hazer Group from future Hazer facilities for general use in the proposed Collie Steel Mill’s electric arc furnace as a recarburiser replacing anthracite.
HZR is steady at 37cps before open today.
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