Hazer Group (ASX:HZR) has signed a non-binding memorandum of understanding (MOU) with Chubu Electric Power Company and Chiyoda Corporation to jointly prepare a project development plan (PDP) for a Hazer production facility in the Chubu region in Japan.
Hazer reports under the MOU, all 3 parties involved have agreed to work collaboratively to prepare the PDP for a clean hydrogen and graphitic carbon production hub in Japan’s Chubu region, based on Hazer’s proprietary technology.
It is reported Chubu Electric Power plans to utilise the produced hydrogen as a fuel for power generation, as well as other hard to abate industries and mobility in the Nagoya area.
“By integrating our technology into the existing energy value chain, we can contribute to the decarbonisation of hard-to-abate sectors such as power generation, heavy industry and mobility”
The company notes the planned production facility will have a target ultimate hydrogen production capacity of between 50,000 and 100,000 tonne per annum (tpa), which is planned to be achieved in stages. Current initial capacity is anticipated to be between 2,500 and 10,000tpa.
Hazer also notes all parties have agreed to complete the PDP during 1H 2024, and will concurrently develop the relevant definitive partnership and commercial agreements to advance the project with commitment, targeting an initial start-up of the facility in the late 2020s.
The MOU has an initial term until year-end 2023 to enable the negotiation of definitive agreements and can be extended by mutual agreement. Additionally, it is reported all parties will cover their own costs incurred and the arrangement does not restrict either party from discussing, entering into, or implementing a similar transaction or similar relationship with third parties.
Meanwhile, the MOU has been executed following an announcement from the Japanese Government on 4 April 2023, in which it reported its plans to increase its hydrogen supply target to 12 million tonne per annum by 2040, or a sixfold increase over the current target of 2 million tonne per annum.
Commenting on the partnership, Hazer Group Managing Director, Glenn Corrie said: “Hazer has always viewed Japan as an important and strategic market for the deployment of our unique technology. By integrating our technology into the existing energy value chain, we can contribute to the decarbonisation of hard-to-abate sectors such as power generation, heavy industry and mobility.
We feel privileged to be working with world-class and strategically aligned partners in Chubu Electric and Chiyoda, both of which have been leaders in their fields and have a demonstrated vision to decarbonise society. This partnership complements our already established partnership with Mitsui relating to our graphite offtake and is further validation of the Hazer technology business plan.”
Hazer Group is an ASX-listed technology development company undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphitic carbon production process.
Chubu Electric Power is a global energy supply company committed to decarbonising the entire social system by expanding use of renewable energy, utilising hydrogen and ammonia co-firing in thermal power generation.
On the other hand, Chiyoda Corporation represents a global engineering company engaged in numerous engineering, procurement and construction and other types of projects around the world for its business field covering oil and gas industry and chemicals, environment, energy conservation, industrial facilities, and life science.