Hazer Group Ltd (ASX:HZR) has entered into a memorandum of understanding (MoU) with Water Corporation to consider developing hydrogen production facility.
Under the MoU the two parties will collaborate to explore the development of a 100 tonnes per annum, low emission, hydrogen production facility using the Hazer Process.
The Hazer Process is utilises methane as a feedstock to produce hydrogen and graphite, without the production of carbon-dioxide in the reaction process and capturing the carbon in the feedstock as solid graphite.
The facility will be based on Hazer’s proprietary production technology and located at the Woodman Point Wastewater Treatment Plant in Munster, Western Australia.
READ: Hazer Group on track to commercialise hydrogen and graphite production process
Hazer’s managing director and CEO Geoff Ward said: “We’re very pleased to have secured Water Corporation’s agreement to work together to locate our Commercial Demonstration Plant in Western Australia.
We greatly appreciate the support and assistance of the Water Corporation team in achieving this significant milestone in our development.
“We believe the potential to use locally produced biogas as a feedstock for the Hazer process is a compelling proposition. It offers a combination of low production costs, significant carbon abatement and proximity to future users of hydrogen as a transport fuel in bus fleets, heavy transport fleets and large industrial users, while adding significant value to a waste resource.
“We believe this first project will be an effective demonstration of the potential for this model to be replicated at larger commercial scale both in Australia and internationally.”
Aim to commence activities by mid-2019
Hazer aims to commence detailed design, approval, and early procurement activities by mid-2019 with the completion of construction and commencement of commissioning targeted for end 2020.
Discussions with potential hydrogen offtake partners and project funders are continuing and, the company remains focussed on securing the necessary agreements in line with delivering the targeted end 2020 start-up date.
The Hazer Commercial Demonstration Plant will be fully owned and operated by Hazer.