Under the MOU, Hazer, Suncor and FortisBC have agreed to work collaboratively to develop the Project
Low-carbon emission hydrogen production facility to be built on the Hazer Technology. (Credit: Michal Jarmoluk from Pixabay)
Hazer Group (ASX: HZR) is pleased to advise that it has executed a Memorandum of Understanding (MOU) with Suncor Energy Inc. and FortisBC Energy Inc. to develop a 2,500 tpa low-carbon emission hydrogen production facility based on the Hazer Technology.
The proposed Hydrogen Project (Project) will process natural gas feedstock to produce 2,500 tpa low-carbon emission hydrogen and approximately 9,000 tonnes of synthetic graphite by-product.
Under the MOU, Hazer, Suncor and FortisBC have agreed to work collaboratively to develop the Project through; (i) an initial Feasibility Study, (ii) securing funding arrangements for the Project, and (iii) to conclude the binding agreements necessary to establish the Project consortium and implement the Project. Suncor will lead the development of the Project through the initial feasibility study, engineering, and construction phases of the Project, and on completion, will operate the facility. FortisBC will supply natural gas feedstock to the Project and will purchase the hydrogen produced from the facility. Hazer will supply the Hazer Process technology, lead engineering relating to the core Hazer technology components, and manage supply of catalyst to the Project.
The Feasibility Study stage of the Project will commence this month with the award of an engineering services contract. The initial high-level schedule for the Project targets a final investment decision (FID) in 2023, with operations targeted to commence in 2025.
As part of the project collaboration, Suncor, FortisBC and Hazer have committed to enter negotiations for a Technology Access Agreement under which Suncor and FortisBC will have exclusive access to the Hazer Technology for further development and deployment in Canada and the state of Colorado (USA), in return for a royalty payment regime and commitments to support the deployment of the Hazer Technology.
Geoff Ward, Chief Executive Officer of Hazer Group said “We are delighted to enter into this collaboration with Suncor and FortisBC, two leading Canadian energy companies committed to building new business opportunities in decarbonisation. The proposed Hydrogen Project will materially advance the Hazer technology building on the work that we are doing at the current Hazer Commercial Demonstration Project at Woodman Point in Perth, Australia. Canada is an excellent jurisdiction for the Hazer technology, with strong platforms and incentive programs to drive decarbonisation action, access to a well-priced low carbon intensity electrical grid and strong demand for low-carbon energy across power, heating and industrial sectors. We are excited to work with Suncor and FortisBC to develop this Project.”
Source: Company Press Release