- Hazer Group Ltd and FortisBC Energy Inc. have signed a binding Project Development Agreement to develop a 2,500 TPA commercial hydrogen facility in Canada, leveraging Hazer’s innovative low-carbon technology.
- FortisBC will own 100% equity and lead the project, which aims to produce hydrogen and graphite, contributing to British Columbia’s CleanBC Roadmap to 2030 emissions reduction strategy.
PERTH, AUSTRALIA– Hazer Group Ltd (“Hazer” or “the Company”) (ASX: HZR) is pleased to announce a binding Project Development Agreement (“PDA”) with FortisBC Energy Inc. (“FortisBC”), focusing on a hydrogen production facility in Canada. This facility, which will be based in British Columbia, aims to produce up to 2,500 tonnes per annum (tpa) of clean hydrogen and approximately 9,500 tpa of graphite, marking a significant scale-up from Hazer’s existing operations.
Under the agreement, FortisBC will assume complete equity ownership and manage the development of the project, supplying the natural gas feedstock required. The hydrogen produced will primarily serve industrial customers in the Vancouver area, supporting the provincial government’s emissions reduction targets as outlined in the CleanBC Roadmap to 2030.
This partnership builds on the success of Hazer’s Commercial Demonstration Plant in Western Australia, which has been operational since earlier this year. The project will incorporate Hazer’s proprietary technology for low-cost, low-emission hydrogen and graphite production, which has already demonstrated promising results.
Key terms of the Project Development Agreement include:
- A technology license agreement where FortisBC will pay Hazer license fees linked to the size of the facility and the volume of hydrogen and graphite produced.
- FortisBC will undertake all engineering, procurement, construction, and operations of the facility.
- Hazer will provide ongoing engineering support and retain ownership of all intellectual property related to its process technology.
The definitive agreements, which will detail the commercial terms including the license fees and operational responsibilities, are targeted for completion by the end of 2024. The project’s Front-End Engineering and Design (FEED) study has been completed by Wood Plc, and the next steps include finalizing the project site and integrating the FEED study outcomes.
The Final Investment Decision (FID) is anticipated by mid-2025, with regulatory submissions planned for the first half of the year. This project timeline is contingent on securing a commercial offtake agreement for the hydrogen, which would simplify the regulatory approval process.
Hazer’s CEO, Glenn Corrie, commented on the agreement, “We are delighted to cement our relationship with FortisBC in this world-first project. Canada is a strategic location for the deployment of Hazer technology with abundant, low-cost gas, low-carbon intensity electricity, and strong government support. The planned construction of the plant in Canada marks an important milestone for our company and it provides validation of our proposed business model.”
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