Hazer Group Completes Pilot Rig Testing Program for FortisBC Project

Hazer Group (ASX:HZR) said on Tuesday (March 4) that a pilot rig testing program has been completed for a project in BC, Canada, that it is collaborating on with Canadian energy utility company FortisBC.

The companies entered into a binding project development agreement in May 2024 to develop a hydrogen production facility in the province using Hazer's technology. FortisBC owns the project and is licensing Hazer's technology for the site, which is designed to produce 2,500 tonnes of hydrogen and 9,500 tonnes of graphite per year.

The project has received C$8 million in funding from the BC government's CleanBC Industry Fund.

According to Hazer, the pilot rig testing program has generated data that de-risks and validates commercial-scale reactor designs, including the design for the reactor that will be used for the Canada project.

The company notes that a "flawless" testing program took place continuously over four days. Among other results, it confirmed the stability of Hazer's process using commercial equipment under extended operating conditions.

The results will now be used to optimize the design of the Canada project's 2,500 tonne commercial-scale reactor, and for larger-scale plants with hydrogen production capacities of over 20,000 tonnes annually.

Progress has also been made toward site selection, which is crucial for the success of the project. Hazer said that FortisBC has created a shortlist and is running feasibility studies. Once site selection has occurred, a front-end engineering and design study will be completed. A final investment decision is targeted for this year.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.