Hazer Group Q2 Earnings Call Highlights

Posted by Scott Moore on Jan 27th, 2026

Hazer Group (ASX:HZR) used its second-quarter shareholder webinar to outline progress on commercializing its methane pyrolysis technology, highlight momentum in its partnership with engineering firm KBR, and discuss an expanding customer pipeline that management said is increasingly focused on steel and other industrial decarbonization opportunities.

Quarter highlights and financial position

Management described the period as a “solid quarter,” emphasizing efforts to strengthen the foundations for commercialization ahead of what it called a pivotal calendar year. Among the key updates, the company said it has made “excellent progress” with KBR since signing the agreement in May last year and beginning work in earnest mid-year. Hazer said the design package for commercial scale facilities is on track and intended to help customers understand how the technology could be integrated into existing sites.

Hazer also reported its first KBR-related transaction with Energy Pathways, calling it an early “run on the board” for the partnership model. The company noted that the Energy Pathways project received U.K. government recognition during the quarter, which management said provides access to fast-track approvals and represents a revenue-generating project for the company.

On funding, Hazer said it started the year with more than AUD 17 million in cash and received more than AUD 5.5 million of inflows during the quarter, including an R&D rebate and remaining proceeds from a capital raise approved at the annual general meeting. Management said cash burn was down about 30% quarter-on-quarter and 40% compared to the same quarter a year earlier, attributing the reduction to stripping out CapEx and residual OpEx to extend the company’s runway.

Hydrogen market view and methane pyrolysis momentum

In discussing market context, Hazer framed its technology as converting methane emissions into clean hydrogen and a high-purity graphite product, positioning it as one technology that can serve hydrogen, critical minerals (graphite), and industrial decarbonization markets.

The company described the current global hydrogen market as large and carbon-intensive, noting that much of today’s hydrogen is produced via steam methane reforming. Management said this process emits roughly 10 tons of CO2 per ton of hydrogen and cited total industry emissions of 920 million tons of CO2, which it compared to roughly twice Australia’s current emissions.

Management also said methane pyrolysis is gaining wider recognition as a clean hydrogen pathway, pointing to increasing industry, investor, and government support. Hazer referenced ExxonMobil’s entry into the space through a technology effort with BASF as a signpost for the sector. It also said the U.K., U.S., and Japan recognize methane pyrolysis as viable, while in Australia the federal Guarantee of Origin Scheme is in consultation on an amendment that management expects to include methane pyrolysis.

KBR scale-up work and first paid study

Chief Operating Officer Tom Kolenc said the first nine months with KBR have involved adapting to the “playbook of a major multinational” for scaling technologies. He said the partnership is now producing early commercial outputs, including what management described as a first revenue-generating study.

Kolenc said Hazer has an 11-year term with KBR backed by a $3 million contribution, including engineering services, marketing support, and access to KBR’s established technology licensing platform. He noted KBR’s technology division licenses dozens of technologies and has a well-known position in ammonia plant licensing, which management said could complement Hazer’s offering in integrated project concepts.

On project execution, Kolenc highlighted the Marram Energy Storage Hub in the U.K. as the first paid concept-level engineering study for the KBR-Hazer alliance. Management described it as a complex, integrated project near the Lake District that includes hydrogen production from methane and integration with KBR’s ammonia technology. Hazer said the U.K. government has designated the project as a national energy significance project, supporting fast-tracked approvals.

Hazer said the Marram project contemplates a 20,000-ton-per-annum Hazer facility and that the concept study is expected to run for the next couple of months as scope progresses for hydrogen, ammonia, and graphite production. The company added that Energy Pathways is exploring graphite deployment options ranging from industrial-scale supply to higher-end uses.

Sales pipeline, steel opportunities, and Whyalla/POSCO updates

Hazer said its active global customer leads increased to over 50, up from around 45 in the prior quarter, and that its pipeline totals roughly 1.5 million tons per annum. Management said recent inbound activity includes three new steel opportunities following its announcements related to POSCO and Whyalla, as well as interest from a European EV company, an Asia-Pacific gas and power utility, and a U.S. carbon trading group.

Management also referenced the Mid-Atlantic Clean Hydrogen Hub (MACH2) request for proposals in the U.S. and said it is evaluating opportunities aligned with that initiative.

Steel was a central theme in the webinar. Hazer described its technology as a strong fit for steelmaking due to the ability to supply clean hydrogen for direct reduced iron processes and provide graphite used in electric arc furnaces as a recarburizer, creating what management called a built-in graphite offtake. The company also cited synergies such as use of an iron ore catalyst and the potential to deliver hot hydrogen that could reduce energy intensity.

Regarding Whyalla, Kolenc said the sale process for the Whyalla Steelworks is government-led and highly confidential. He confirmed Hazer entered a binding memorandum of understanding with M Resources, and that M Resources has submitted a bid that includes Hazer’s technology as a decarbonization component, with KBR also supporting the bid. Management said it is “genuinely excited” about the fit with the opportunity but acknowledged limits on what it can disclose.

Hazer also said it extended its strategic partnership with POSCO following what management characterized as positive graphite testing results completed over the past six to 12 months. Management said the next steps for the POSCO project are now being developed.

Graphite monetization strategy and near-term priorities

Kolenc said Hazer Graphite has unique properties and is not “standard graphite,” and that work has progressed from research toward business case development. He described the company’s near-term strategy as targeting large-volume, “drop-in” markets where graphite can be used with limited or no post-processing, while maintaining a medium- to long-term pathway into higher-value critical minerals applications that require more extensive qualification and processing.

Hazer identified several priority markets for near-term focus, including:

Iron and steel manufacturing
Concrete additives
Asphalt binders

Kolenc said the company is targeting a minimum graphite price point of around $500 per ton, while noting that specific markets can vary in pricing. Management also referenced an MoU with Kemira and ongoing work with Veolia as part of exploring opportunities in water treatment.

Looking ahead, management said the next 12 months will focus on converting the pipeline into licenses and advancing key projects through FEED and contracting. The company also provided a status note on its FortisBC-related work in Canada, saying progress is being made and that an update is expected in the near term.