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Hazer (ASX:HZR) confirms ARENA funding for hydrogen fuel facility

Renewable Energy
ASX:HZR      MCAP $106.1M
16 March 2020 14:11 (AEST)
Hazer Group (ASX:HZR) - Managing Director & CEO, Geoff Ward

Sourced: Proactive Investors

Tech developer Hazer (HZR) has announced the execution of a binding funding agreement with ARENA for grant funding of up to $9.41 million.

Hazer and ARENA (Australian Renewable Energy Agency) will receive this money under the Advancing Renewables Program.

The company will be eligible for three payments totalling up to $7.9 million during the capital construction phase of its Hazer Process Commercial Demonstration project, with a further $1.5 million available to be called down during the operational phase of the project.

All funding will be subject to key design, contracting, construction and commissioning milestones – including the completion of binding supply and offtake agreements, and demonstration of financial capacity to complete the project.

At each funding milestone, Hazer is required to submit a Milestone Report showing the company has met the operational and technical requirements of that milestone and demonstrating the ongoing capacity to fund and execute the project.

The Hazer Process Commercial Demonstration Project is a 100 ton per annum, low emission hydrogen production facility that will be the first larger scale, fully integrated deployment of the Hazer Process.

The Hazer Process uses biogas produced at the Water Corporation’s Woodman Point WasteWater Treatment Plant as feedstock to produce hydrogen and graphite.

The hydrogen produced will be fuel cell grade capable of being used as a low emission transport fuel.

Hazer is currently progressing engineering, funding and commercial activities to finalise the project’s budget and schedule. The board will need to formally approve the arrangements which are expected to cost between $16 – $17 million.

“We gratefully acknowledge the support of the Australian Government through the important phase of commercial development for this novel Australian technology,” Managing Director Geoff Ward commented.

“Hazer would like to thank the team at ARENA for their support in negotiating this agreement and look forward to working with the ARENA team as we progress project sanction, contracting and delivering this exciting project,” he added.

Hazer is up 6.5 per cent, with shares trading for 33 cents apiece as at 2:11 pm AEDT

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