Hazer Group is raising up to $5 million through an initial public offering of 25 million shares priced at $0.20 each.
The company has intellectual property rights to a technology (the Hazer Process) developed at the University of Western Australia that produces hydrogen and high purity graphite from methane in an environmentally friendly process.
The company and UWA have applied for 3 patents associated with the Hazer Process, which is distinguished from existing commercial hydrogen production technologies by its co-production of graphite.
Proceeds from the IPO will be used for the following:
- Fund a 2 year research and development program of the Hazer Process and its development paths;
- Pay fees associated with patent protection; and
- Provide general working capital including corporate administration costs.
Development to date has demonstrated initial scale up of an original research-scale reactor employing the Hazer Process as well as advances in the underlying process through catalyst development.
The company seeks to further develop the process by large-scale in-laboratory development, progressing through demonstration and pilot plants to a commercial plant utilising the Hazer Process.
Hydrogen Market
Global hydrogen production in 2014 is estimated at over 64 million tonnes, at a total value of over US$100 billion.
The most significant geographic markets were Asia (43%) and Europe (23%).
It is used primarily used in the petroleum refining process to crack heavy hydrocarbons to produce liquid fuels, and as a feedstock for ammonia production.
It can also be used as a fuel in its own right though this is constrained by existing production methods, which are not clean, cost effective or energy efficient.
It will trade as HZR on the Australian Securities Exchange.
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