Hazer Commercial Demonstration Plant

December 11th, 2024

Hazer Commercial Demonstration Plant

This project, located near Perth, is a commercial demonstration of the Hazer production technology that can convert methane feedstocks, through the use of an iron ore process catalyst, into hydrogen and synthetic graphite.

Main proponents:

Hazer Group Limited

Main end-use classification:

Demonstration and testing purposes, graphite sample production with some self-power use

Status:

‘Cold reactor’ operations – June 2022

First hydrogen and graphite – January 2024

Estimated cost:

AUD$23-25 million

Other involvement:

 

Production details:

~100 tonnes per annum hydrogen production, 380 tonnes per annum synthetic graphite production capacity

Location:

Western Australia, Australia

Announced funding:

AUD$9.41 million – Australian Renewable Energy Agency (ARENA)

AUD$6.2 million – Lower Carbon Grants Program – Gorgon Fund

Project description

The Hazer Group has developed a process that uses methane (bio-methane in the case of this specific project) as a feedstock which, through the use of an iron ore process catalyst, can be converted into hydrogen and synthetic graphite (in which the carbon contained in the biogas feedstock is ‘trapped’).

In June 2022, Hazer announced completion of construction and commissioning activities at the Hazer Commercial Demonstration Plant project with first gas introduced. A first phase of operations testing, using a temporary carbon steel reactor (‘cold’ reactor), allowed for trialling of the gas conditioning, solids handling, process control, safety and utilities systems. This phase would also deliver initial process data to de-risk the start-up of the second phase of plant operations (‘hot operations’ and full production start-up).

In July 2022, Hazer announced that the transition to hot operating mode had been delayed by fabrication difficulties with the heat-exchange vessel requiring a re-make, and which was expected to defer the production of hydrogen and graphite.

In January 2024, Hazer announced the first production of hydrogen and graphite at the Commercial Demonstration Plant, noting that the Company expects to ramp up operations through the first half of 2024 and execute a performance testing program designed to demonstrate commercial readiness of the technology.

In November 2024, Hazer announced over 450 hours of stable production operation at the Commercial Demonstration Plant during its Q4 2024 long duration run focused on stable production of high-purity graphite, the release noting this as the longest continuous operating run in the 2024 performance program.

The demonstration plant has a planned (operating) duration of around three years and would have the capacity to produce approximately 100 tonnes of hydrogen per annum and 380 tonnes of synthetic graphite per annum.

A portion of the produced hydrogen is intended to be used for self-power generation.

The demonstration plant is co-located at the Water Corporation’s Woodman Point Wastewater Treatment plant in Munster about 30 kilometres south-south-west of Perth. Biogas produced at the waste treatment plant will be used as feedstock for the demonstration plant. It is estimated that the plant can utilise around two million standard cubic metres of biogas that would otherwise be flared.

The project scope includes a stationary hydrogen fuel-cell power generation system, which will allow the plant to generate some renewable power by using a portion of the produced hydrogen.

The capital cost of the demonstration plant is estimated at between AUD$23-25 million.

Milestones

May 2019: Announcement that the Hazer Group and the Water Corporation had entered into a Memorandum of Understanding to collaborate in principle to explore the development of a 100 tonne per annum hydrogen production plant at the Woodman Point Wastewater Treatment Plant.

September 2019: ARENA announced it has approved up to AUD$9.41 million in funding to the Hazer Group to support the construction and operation of the demonstration plant.

March 2020: The Hazer Group announced that it had executed a funding agreement with ARENA for up to AUD$9.41 million to support the capital construction and operation of the demonstration plant. Additional information regarding the operation of key aspects of the funding agreement was also supplied by the Hazer Group in March 2020.

May 2020: The Hazer Group announced that it had executed a binding Gas Supply Agreement and Collaboration Deed with the Water Corporation for the supply of gas and co-location of the demonstration plant.

July 2020: The Hazer Group announced a final investment decision to proceed with the project and the appointment of EPC contractor.

March 2021: Earthworks commenced.

June 2022: The Hazer Group announce completion of construction and commissioning activities, allowing for first biogas feed to be introduced to the plant marking the start of the first planned phase of operational testing.

January 2024: The Hazer Group announce first production of hydrogen and graphite.

September 2024: The Hazer Group announce that the Commercial Demonstration Plant had achieved over 360 hours of continuous operation. The release notes that with this achievement, the reactor testing program being undertaken at that time was nearing completion. Following a maintenance and inspection program, a final 2024 campaign is to focus on production of high-purity graphite to support larger scale application testing (scheduled to be completed in the fourth quarter).

November 2024: The Hazer Group announced that in its most recent campaign the Commercial Demonstration Plant achieved over 450 hours of continuous stable operation focused on stable production of high purity graphite, with the release noting the Commercial Demonstration Plant had achieved more than 1,250 hours of continuous operation. The release also notes that the Commercial Demonstration Plant (as of November 2024) is being warm stacked while the engineering work associated with the integration of the next generation reactor and heat exchange equipment is being undertaken. The release notes the second-generation reactor concept has been developed to demonstrate scale up of the technology to large scale commercial levels of more than 20,000 tonnes per annum of hydrogen production, with installation and testing of the next generation reactor to commence in 2025.

December 2024: The Hazer Group announced the conditional award of AUD$6.2 million under the Lower Carbon Grants Program – Gorgon Fund, such funds to be used to advance the performance program of the commercial scale reactor noted in the November 2024 release.

 

Updated: December 2024