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Highlights:

  • Hazer Group signed a non-binding MOU with UK-based EnergyPathways to evaluate a hydrogen facility.
  • HZR to assess production of hydrogen, ammonia and graphite integrated with the MESH project in NW England.
  • HZR grants 12-month exclusivity to EnergyPathways for use of its licensed methane pyrolysis technology in UK.

Hazer Group Ltd (ASX: HZR), an Australian technology development company focused on low-emission hydrogen and graphite production, has entered into a non-binding Memorandum of Understanding (MOU) with UK-based EnergyPathways plc (EPP). The agreement will explore the feasibility of developing a clean hydrogen production facility in northwest England using Hazer’s proprietary methane pyrolysis process.

The proposed plant, to be integrated into EnergyPathways’ Marram Energy Storage Hub (MESH), would have an indicative capacity of 20,000 tonnes of hydrogen per annum. MESH is a planned infrastructure initiative designed to support the UK’s energy system by supplying low-carbon, cost-effective energy and connecting to the national electricity and gas grids as well as the developing “Project Union” hydrogen pipeline.

Under the terms of the MOU, the two companies will undertake concept engineering studies to examine how Hazer’s technology can be applied within the MESH project. The scope of the work includes assessing the technical and commercial feasibility of producing clean hydrogen, ammonia and graphite. The results of the studies will inform whether to proceed to Front-End Engineering and Design (FEED) for the proposed facility.

Hazer’s proprietary process converts methane into hydrogen and graphite using unprocessed iron ore as a catalyst, aiming to deliver a cleaner alternative to conventional hydrogen production methods. This evaluation will also draw on Hazer’s strategic alliance with KBR, which is focused on integrating the methane pyrolysis technology with clean ammonia production.

As part of the agreement, Hazer has granted EnergyPathways 12 months of limited exclusivity for the use of its technology in the UK, contingent on progressing the concept engineering phase. Commercial terms, timelines, and responsibilities related to the completion of the studies, FEED and licensing will be negotiated by the parties during the next phase of collaboration.

Hazer Managing Director and CEO Glenn Corrie stated that the cooperation reflects an increasing interest in methane pyrolysis as a clean hydrogen pathway, particularly as governments and industries seek options to reduce emissions in hard-to-abate sectors.

EnergyPathways’ Marram Energy Storage Hub aims to provide integrated, flexible storage solutions and energy delivery across multiple sources. The company has been working with key stakeholders, regulators and industry participants to align the project with the UK’s broader net-zero goals. EPP’s plan includes co-locating hydrogen production alongside existing gas infrastructure and energy storage, which may support wider decarbonisation of both the power sector and industrial users.

The UK Government has signalled policy support for alternative hydrogen production methods, including methane pyrolysis, due to their potential to lower industrial emissions and reduce the carbon intensity of supply chains. EnergyPathways CEO Ben Clube noted the collaboration with Hazer aligns with these objectives and could contribute to delivering what the company considers to be one of the lowest-cost clean hydrogen projects in the region.

This MOU represents the beginning of an evaluation process rather than a final investment decision. The companies will now move into a scoping phase to define technical design parameters and determine the feasibility of progressing the development.

HZR trading at 6.45% higher at AUD 0.33 per share as on 15 july 2025.