Hazer Group Ltd (ASX:HZR, OTC:HZRGF) has been selected by commodities group M Resources to supply its methane-pyrolysis technology for the group’s bid to acquire and transform the Whyalla steelworks into a low-carbon steelmaking hub.
The companies have signed a binding memorandum of understanding (MOU) giving M Resources exclusive rights to integrate the Hazer Process into its proposal to purchase OneSteel Manufacturing Pty Ltd, the owner of the Whyalla operation currently being sold by administrator KordaMentha.
“We’ve long spoken about the potential of Hazer’s technology and its strong alignment with low-carbon emissions iron and steel production," Hazer’s CEO and MD Glenn Corrie said. "This partnership with M Resources is a clear demonstration of the Hazer Process’s ability to integrate into steelmaking, particularly through the use of low-cost clean hydrogen for direct iron reduction and the application of Hazer graphite in electric arc furnaces.
"The opportunity to apply Hazer’s technology in conjunction with KBR at Whyalla is particularly compelling. In my recent engagements in Canberra, steelmaking was consistently recognised by key ministries as a natural fit for Hazer’s technology and Australia’s broader clean-industry ambitions. I’m pleased we are able to advance this opportunity with M Resources and support the South Australian Government in meeting its decarbonisation objectives for Whyalla.”
Clean hydrogen and graphite for steelmaking
Hazer’s technology converts methane into clean hydrogen and synthetic graphite using an iron-ore catalyst. Under the MOU, the partners will investigate integrating Hazer’s hydrogen into a direct reduction process at Whyalla, replacing natural gas to reduce iron-ore pellets, while Hazer’s synthetic graphite would be used as a recarburiser in electric arc furnace steelmaking.
The proposal centres on deploying a large-scale commercial Hazer facility capable of supplying low-cost hydrogen, with additional efficiency gains from using iron ore already present in the steelmaking flowsheet as part of the catalytic process. The plan aligns with state and federal ambitions to evolve Whyalla into a modern, lower-emissions steel industry hub.
Matt Latimore, M Resources CEO said: “We are very pleased to be collaborating with Hazer to incorporate their world-class methane pyrolysis technology into our Whyalla proposal. This technology further strengthens our bid for this unique asset by dramatically lowering the cost of lo
Hazer will also draw on its strategic alliance with engineering partner KBR, which has a long history in South Australia and was recently selected to support concept design work for Australia’s AUKUS submarine construction yard.
Steel sector accelerating toward hydrogen
Hydrogen and graphite are emerging as pivotal inputs for low-carbon steelmaking, particularly in direct-reduced iron (DRI) paired with electric arc furnaces. Forecasts cited by the company point to the steel sector representing the largest projected increase in hydrogen demand by 2050, with the majority expected to be used for low-emissions DRI production.
Hazer says its ability to produce both hydrogen and high-purity graphite in a single low-emissions process creates a strong technical and economic alignment with this pathway.
Expanding opportunities beyond Whyalla
The MOU also includes scope to assess broader applications of the Hazer Process in low-carbon DRI projects in other regions, including the Middle East and the United States.
Exclusivity applies only to the Whyalla bid and falls away if the bid is unsuccessful. Both companies retain their intellectual property and carry their own costs.