Hazer Group Ltd (ASX:HZR) and Mineral Resources Ltd (ASX:MIN) has executed a binding agreement for the design and construction of commercial scale synthetic graphite facilities.
Mineral Resources will fund all commercial development, with Hazer providing intellectual property and technical assistance.
The Hazer Process enables the effective conversion of natural gas and similar feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst.
The execution of the agreement is a significant commercial milestone for Hazer and is expected to accelerate the commercial deployment of the Hazer Process.
READ: Hazer Group takes another step to advance pre-pilot plant
Geoff Pocock, managing director, said: “Hazer is delighted to have cemented this long term relationship with Mineral Resources, who have been a major supporter of Hazer to date.
“This is an excellent opportunity for Hazer to partner with an organisation with the balance sheet and capital reserves necessary for a project of this magnitude, and the proven execution capability to accelerate the commercial deployment of our technology.”
Aiming to commission a pilot plant within 8 months
The initial focus of the collaboration will be on a pilot scale facility capable of producing one tonne per annum of high quality graphite suitable for high value applications including lithium ion batteries.
The pilot facility will include primary graphite production as well as integrated purification capacity to enable the production of ultra-high purity graphite.
Mineral Resources and Hazer are aiming to commission the pilot plant within 8 months.
READ: Hazer Group receives interest from steel industry for its technology
Upon establishing final design and performance parameters of the pilot plant, Mineral Resources will design and construct a 1,000 tonnes per annum commercial scale production facility.
On successful deployment of the commercial facilities, Hazer will receive royalties based on the revenue generated by the sale of high purity synthetic graphite.
Simultaneously pursuing graphite and hydrogen opportunities
The new agreement allows Hazer to continue pursuing global hydrogen production opportunities and grant licences to third parties to use the Hazer technology for producing hydrogen.
Under the terms of the agreement, any future hydrogen licence will grant Mineral Resources the primary opportunity to acquire any graphite co-produced by hydrogen partners.