Join our daily newsletter At The Bell to receive exclusive market insights
Much-watched novel hydrogen and graphite producer Hazer Group (ASX:HZR) has signed an MoU with Korea’s POSCO to investigate low carbon steel synergies.
Shares were up 4.35% to 48cps in the first hour of trade.
In short, driven by an internal ESG commitment, POSCO – one of the world’s largest engineering companies with a heavy energy focus – is investigating emission reduction strategies across its entire portfolio.
Hazer Group’s tech is now on POSCO’s radar. While MoU’s are cheap in Australia, the deal does strike a milestone for a company that once operated out of the same complex where a skate park was located (make of that what you will).
Where the relationship will go is ultimately unclear. Hazer reported it will “prepare a project pathway” with POSCO towards a potential reality where the latter implements Hazer tech on-site its steel mills.
Around 8% of global GHG emissions are from the steel making industry. (Friday fun fact: youtube has a lot of videos of electric arc furnaces worth checking out to get an idea.)
But hydrogen is not the only thing on POSCO’s radar.
Hazer’s ability to solicit intrigue amongst market pundits and professionals alike is its main claim to fame, that it can be the first to commercialise a process that produces hydrogen and graphite at once.
POSCO, under the MoU, will also be looking at potential ways to include the graphite that Hazer can produce in and outside its steel businesses – as well as marketing of the product.
“We believe Hazer’s unique technology offers important benefits that enable us to achieve our Net Zero vision as set out in our 2050 Carbon Neutrality Roadmap,” POSCO technical chief Dr. Seong-yeon Kim said.
Hazer CEO Glen Corrie described the deal as part of a “scale-up” strategy.
“This MOU will enable the next phase of our scale-up strategy into this key market with a significant company known for its sustainability focus and innovation,” he said.
HZR last traded at 48ps.
