Shares in Glenn Corrie-led Hazer Group rose by 22 per cent on Friday morning, following news it had signed a binding agreement with M Resources.
Hazer Group boss Glenn Corrie says the company’s partnership with global commodity supply group M Resources was a sign its technology could be successfully integrated into steelmaking.
The chemical engineering company told the market on Friday that it had signed a binding memorandum of understanding with Brisbane-based M Resources, which is presently aiming to acquire One Steel Manufacturing – owner of the Whyalla steelworks in South Australia, which went into administration earlier this year.
As part of the MOU, both parties will work closely on ways to incorporate Hazer’s technology into facilities at Whyalla – including using Hazer’s clean hydrogen into the direct reduction process, along with Hazer Graphite, which will be able to produce steel after being used within an electic arc furnace.
Earlier this year, Hazer announced it had teamed up with New York Stock Exchange-listed Kellogg Brown and Root, a global engineering and technology company, in order to accelerate Hazer’s proprietary methane pyrolysis by both licensing and commercial deployment.
“The opportunity to apply Hazer’s technology in conjunction with KBR at Whyalla is particularly compelling,” Mr Corrie said.
“In my recent engagements in Canberra, steelmaking was consistently recognised by key ministries as a natural fit for Hazer’s technology and Australia’s broader clean-industry ambitions.
“I’m pleased we are able to advance this opportunity with M Resources and support the South Australian government in meeting its decarbonisation objectives for Whyalla.”
As of 10.39am AWST, Hazer shares were up 22 per cent to 50 cents, its highest price since November 10.
Earlier this month, Hazer also extended its non-binding MOU with South Korea-based POSCO Steel, a low carbon-focused steelmaker for an additional two years, saying it had enjoyed a ‘successful period of collaboration’.
