Key Highlights

  • Hazer Group Limited (ASX: HZR) reported independent testing by ANZAPLAN confirming its graphite can be thermally purified above 99.99% by weight.
  • The purity result supports evaluation for lithium-ion and sodium-ion battery applications, but electrochemical testing and customer qualification remain outstanding.
  • Hazer’s current commercial strategy is focused on technology licensing, including a development agreement with FortisBC in Canada.
  • The company continues to operate from a demonstration-scale base while progressing engineering work for larger commercial applications.

Hazer Group Limited (ASX: HZR) has achieved a significant technical milestone after independent German testing confirmed that graphite produced through its process can be purified beyond 99.99% by weight.

The company announced on 13 July 2026 that testing completed by ANZAPLAN, a division of Germany’s Dorfner Group specialising in graphite processing and battery materials, had demonstrated the high-purity characteristics of Hazer’s graphite product.

The result is relevant because graphite purity is an important factor in battery material supply chains. Lower levels of metallic impurities can improve suitability for applications such as lithium-ion battery anodes and conductive additives.

However, the result represents a chemical purity assessment rather than a completed battery qualification. The next stage involves electrochemical testing, which is expected during the second half of calendar 2026. These tests will assess factors including battery capacity, first-cycle efficiency and cycling performance.

Until those results are available and potential customers complete their own qualification processes, the graphite remains a technically validated material rather than a commercially qualified battery product.

Understanding the Hazer Process and Graphite Opportunity

Hazer is not a traditional mining company. The Perth-based company is developing and licensing a technology platform based on methane pyrolysis, known as the HAZER Process.

The process uses natural gas or biogas combined with an iron ore catalyst to produce hydrogen and solid graphite. Unlike conventional hydrogen production methods that can generate carbon dioxide emissions, Hazer’s process produces carbon in solid form as graphite.

The technology is often associated with the term turquoise hydrogen, positioned between blue hydrogen, which relies on carbon capture technologies, and green hydrogen, which uses renewable electricity to split water through electrolysis.

The commercial model depends partly on monetising the graphite co-product. Revenue from graphite sales could potentially support the economics of hydrogen production.

Hazer has previously indicated that hydrogen production costs of approximately A$1 to A$2 per kilogram could be achievable at commercial scale in Australia. However, this remains a company estimate for future operations rather than a demonstrated production cost.

Demonstration Plant Shows Technology Progress but Scale Remains Ahead

The difference between technology demonstration and commercial deployment remains central to Hazer’s development pathway.

The company’s existing Commercial Demonstration Plant is located at Water Corporation’s Woodman Point wastewater treatment facility in Munster, Western Australia.

The facility was designed to produce approximately 100 tonnes per annum of hydrogen and around 380 tonnes per annum of graphite using biogas that would otherwise be flared.

The project received funding support from the Australian Renewable Energy Agency, which contributed approximately A$9.41 million towards the total project cost of around A$22.6 million. The facility also received a A$6.2 million grant from the Lower Carbon Grants Program.

The plant was commissioned in 2022 and produced its first hydrogen and graphite in January 2024. CSIRO’s HyResource database recorded more than 1,250 operating hours by late 2024, including continuous operating periods exceeding 450 hours.

The facility has since been warm stacked while engineering work continues on a next-generation reactor designed to support future scale-up.

While the demonstration plant has provided operating data, it remains significantly smaller than the commercial-scale projects Hazer is targeting.

Commercial Plant Design Moves Forward Through Engineering Work

During the June 2026 quarter, Hazer and engineering partner KBR completed a Process Design Package for a standardised commercial plant design.

The proposed design targets production capacity of approximately 30,000 tonnes per annum of hydrogen with associated graphite output.

The completion of the Process Design Package is intended to support future customer discussions and reduce engineering requirements for potential projects.

However, the design represents an engineering milestone rather than an operating commercial facility. No plant of this scale using the Hazer Process has been built or operated.

The company’s ability to move from demonstration technology to commercial deployment remains dependent on project approvals, financing, customer commitments and successful execution.

FortisBC Project Provides Potential Licensing Pathway

Hazer’s most advanced international opportunity is located in British Columbia, Canada, through a binding project development agreement with FortisBC Energy Inc.

Under the proposed structure, FortisBC would own and operate the project, while Hazer would provide technology licensing and engineering services related to the core process.

The proposed facility targets approximately 2,500 tonnes per annum of hydrogen production and around 9,500 tonnes per annum of graphite.

The project is significant because it aligns with Hazer’s capital-light licensing strategy. Rather than directly funding and operating every future plant, the company aims to generate revenue through technology licensing and engineering support.

However, the project remains under development. There is no disclosed final investment decision, construction schedule or confirmed capital cost.

The opportunity represents a potential commercial pathway, but it has not yet progressed into a producing asset.

Graphite Applications Extend Beyond Battery Markets

Although battery applications have attracted attention following the purity announcement, Hazer is also pursuing graphite markets outside energy storage.

In June 2026, the company signed a binding memorandum of understanding with South Australia’s Hallett Group covering low-emissions concrete and construction materials.

The agreement provides Hallett with exclusive rights in the South Australian concrete market until January 2027, followed by a first-refusal period.

The arrangement followed qualification testing at Boral laboratories, which indicated Hazer graphite met Australian infrastructure standards.

Hazer also has a non-binding letter of intent with Green Steel WA covering potential supply of up to 85,000 tonnes of graphite over ten years. The proposed supply period begins in 2030, with pricing linked to anthracite benchmarks.

These agreements provide potential future demand pathways, although the Green Steel arrangement remains non-binding and does not represent contracted revenue.

Funding Position Supports Continued Development

Hazer reported approximately A$13 million of liquidity at 30 June 2026, including cash and committed grant funding.

The company reported quarterly operating cash burn below A$2 million, allowing continued progress on engineering, testing and commercial discussions.

The company’s licensing strategy is designed to reduce the capital requirements typically associated with building and operating industrial facilities.

Future funding needs will depend on the pace of commercialisation activities, technology development and any direct involvement in future projects.

Share Performance Focused on Commercial Milestones

Hazer’s share performance remains closely linked to progress on technology validation and commercial adoption.

The graphite purity result provides external confirmation that the company’s process can produce a high-purity graphite product. However, investors will continue to monitor whether this technical achievement translates into customer qualification, commercial agreements and revenue generation.

The key upcoming milestones include ANZAPLAN electrochemical testing results, progress on the FortisBC project and potential conversion of graphite evaluation agreements into binding commercial arrangements.

Conclusion

Hazer Group Limited (ASX: HZR) has achieved an important technical milestone with independent confirmation that its graphite can exceed 99.99% purity, expanding the potential market applications for its co-product. The result strengthens the technical profile of the HAZER Process but does not yet represent completed battery qualification or commercial production.

The company remains focused on progressing from demonstration-scale operations towards licensing and commercial deployment. Future developments around electrochemical validation, customer qualification and project advancement will determine how effectively Hazer converts its technology platform into long-term commercial outcomes.