Hazer Group Ltd. · ASX:HZR
Hazer — Investor Presentation (June 2023)
44 slides from Hazer's investor presentation, Jun 15, 2023
Slide 1: Hazer Strategy Update Presentation
Hazer Group Limited (ACN 144 044 600) Level 9, 99 St Georges Tce, WA 6000 PO Box Z5511, St Georges Tce, Perth, WA 6831 HAZER STRATEGY UPDATE PRESENTATION PERTH, AUSTRALIA; 15 June 2023: Hazer Group Ltd (“Hazer” or the “Company”, ASX: HZR) will be hosting its Strategy Update webinar, including a Q&A
Slide 2: Hazer Group Ltd Strategy Update
ASX:HZR Hazer Group Ltd Strategy Update Thursday, 15 June 2023
Slide 3: Disclaimer
2 Hazer Group – Strategy Update – June 2023 Disclaimer Important information This presentation has been prepared by Hazer Group Limited (“Hazer” or “the Company”) Forward Looking Statements Statements contained in this document or made during or in connection with Summary Information This document c
Slide 4: Agenda
3 Hazer Group – Strategy Update – June 2023 Agenda Topic Presenter Introductions & Corporate Overview Glenn Corrie Hazer Investment Highlights Glenn Corrie CDP Update Mark Edwards Project Pipeline Luc Kox Growth & Monetisation Neil Brodie Wrap-Up Glenn Corrie Q&A All
Slide 5: Corporate Overview
Corporate Overview
Slide 6: Experienced management team & board
5 Hazer Group – Strategy Update – June 2023 Experienced management team & board Management Team Board Glenn Neil Mark Luc Belinda Tim Danielle Dr Jack Andrew Corrie Brodie Edwards Kox Wilson Goldsmith Lee Hamilton Hinkly MD & CEO Interim CFO COO CCO CPO Chairman Non-Executive Non-Executive Non-Execu
Slide 7: Hazer's competitive technology advantage
6 Hazer Group – Strategy Update – June 2023 Hazer’s competitive technology advantage Innovative low emission, low-cost methane pyrolysis technology producing clean hydrogen and graphite • Hazer Group Limited is a technology development company undertaking the commercialisation of the Hazer Process •
Slide 8: Corporate overview
7 Hazer Group – Strategy Update – June 2023 Corporate overview HZR:ASX Share Price History 0.9 1.5 0.8 0.7 0.6 1 Capital Structure as at 13 June 23 $/share 0.5 Millions 0.4 Share price $0.70 0.3 0.5 Market capitalisation (AUD) $119 million 0.2 Shares on issue 170,443,743 0.1 Cash as at 31 March 23 (
Slide 9: The Hazer competitive advantage
8 Hazer Group – Strategy Update – June 2023 The Hazer competitive advantage Innovative low emission methane pyrolysis technology designed to produce clean hydrogen and graphitic carbon
Slide 10: Executing scale-up strategy in hard-to-abate sectors
9 Hazer Group – Strategy Update – June 2023 Executing scale-up strategy in hard-to-abate sectors Strategy: Enablers: MONETISE & • Commercial scale projects in multiple • Japan & EU Production Facilities GROW jurisdictions under license agreements • New Business Projects • Expand global portfolio • P
Slide 11: Aligning with UN Sustainable Development Goals
10 Hazer Group – Strategy Update – June 2023 Aligning with UN Sustainable Development Goals Producing clean hydrogen from methane reducing emissions and accelerating the energy transition Innovative climate technology decarbonising hard-to-abate sectors Partnering with global corporations and govern
Slide 12: Key Activities
11 Hazer Group – Strategy Update – June 2023 Key Activities CY2023 CY2024 H1 H2 H1 Procurement, Fabrication, Engineering & Installation Commercial Demonstration Plant (100 tpa) Ready for Start-up today Targeted Production & Testing Program Suncor & Fortis 2,500 tpa Burrard Plant FEED Studies in Cana
Slide 13: Hazer Investment Highlights
Hazer Investment Highlights
Slide 14: Investment highlights
13 Hazer Group – Strategy Update – June 2023 Investment highlights Low cost, low emissions H2 production technology company positioned to play a leading role in global decarbonisation 1 2 3 4 Low-cost, Low- Compelling Global Tier-1 Advanced Technology emissions, Proprietary Economics & Partnerships
Slide 15: Low cost & low emissions hydrogen
14 Hazer Group – Strategy Update – June 2023 1 Low cost & low emissions hydrogen Hazer well positioned as a low-cost, low-emissions hydrogen technology Existing Technologies Electrolysis Methane Pyrolysis vs SMR on grid Steam Methane Reforming (SMR) 2x methane 10% less heat Significant CO2 emiss
Slide 16: Strong IP protection & strategy
15 Hazer Group – Strategy Update – June 2023 1 Strong IP protection & strategy 71% of the Hazer IP portfolio is now accepted or granted in line with expectations Four IP families across 30 jurisdictions: 1. Hydrogen production using iron-ore catalyst 2. Hazer graphite morphology and purification 3.
Slide 17: "Plug-in" technology using existing infrastructure
16 Hazer Group – Strategy Update – June 2023 1 “Plug-in” technology using existing infrastructure End-use deployment and application of the Hazer Technology eliminates H2 transport risk and reduces cost • Eliminates requirement for hydrogen transportation cost and risk • Co-located with end-user inf
Slide 18: Delivered Cost of H2 – Hazer Competitive Advantage
17 Hazer Group – Strategy Update – June 2023 2 Delivered Cost of H2 – Hazer Competitive Advantage Landed Cost of Hydrogen* Cost of Hazer H2 Cost of delivered H2 to Asia • Hazer co-located at existing infrastructure $16.00 in US & Asia from Australia eliminating requirement for shipping $14.00 • Liqu
Slide 19: Global partners & projects
18 Hazer Group – Strategy Update – June 2023 3 Global partners & projects Tier-1 partners developing commercial projects in North America, Europe and Asia-Pacific
Slide 20: Advanced technology readiness
19 Hazer Group – Strategy Update – June 2023 4 Advanced technology readiness Project Rapid development since company founding and advancing Tech Readiness Level (TRL) Development Pipeline (< 60kg/hr* continuous**) (~<2 kg/hr* semi-continuous) (~1Kg* batch) (<100g* batch) (<1g* batch) 2007–2013 2016–
Slide 21: Targeted R&D program to accelerate commercialisation
20 Hazer Group – Strategy Update – June 2023 4 Targeted R&D program to accelerate commercialisation Strengthening IP and expediting technology development Process Development Graphite Product Development Catalyst Development Objective: Objective: Objective: Validate commercial performance & Identify
Slide 22: "Capex-lite" business model enables early free-cashflow
21 Hazer Group – Strategy Update – June 2023 5 “Capex-lite” business model enables early free-cashflow Hazer business plan premised on licensing and royalty revenues avoiding large-scale capex exposure Hydrogen Royalties • One technology, two valuable markets • Flexible combination of license fees a
Slide 23: Graphite production diversifies earnings
22 Hazer Group – Strategy Update – June 2023 6 Graphite production diversifies earnings A synthetic, low emissions product with differentiated morphology and properties • Highly structured vs amorphous carbon black Mitsui MOU • Iron inclusions produce magnetic graphite • A leading international trad
Slide 24: Unlocking the value of Hazer graphite
23 Hazer Group – Strategy Update – June 2023 6 Unlocking the value of Hazer graphite Differentiated properties for large & diverse applications • Steel / Iron - low emissions steel applications High volume, high value across a broad range of production processes markets • Water Purification - PFAS r
Slide 25: Hydrogen market set to grow over 5x by 2050
24 Hazer Group – Strategy Update – June 2023 7 Hydrogen market set to grow over 5x by 2050 Global energy demand supplied with hydrogen (Mtpa) 545 2021 Hydrogen Million tonnes Demand* • Ammonia • Methanol (53%) • Refining (41%) • Steel (6%) 95 2021 2050 Source: Hydrogen Council & EIA * Parenthesis re
Slide 26: Significant fiscal policy support across key markets
25 Hazer Group – Strategy Update – June 2023 8 Significant fiscal policy support across key markets Government funding & incentives support Hazer technology commercialisation POLICY SUPPORT HAZER ELIGIBILITY Other Australia ARENA ($9mln) & R&D tax support Hydrogen Headstart Program Asia Hydrogen
Slide 27: Global policy action gaining momentum
26 Hazer Group – Strategy Update – June 2023 8 Global policy action gaining momentum Hydrogen strategies expected in countries representing over 80% of global GDP by 2025 inflation Reduction Act (IRA) Source: Goldman Sachs, Carbonmics: the Clean Hydrogen Revolution, February 2022, p.15
Slide 28: Commercial Demonstration Plant (CDP)
Commercial Demonstration Plant (CDP)
Slide 29: Commercial demonstration plant confirming scalability
28 Hazer Group – Strategy Update – June 2023 Commercial demonstration plant confirming scalability The first fully-integrated demonstration plant of the Hazer Process Project Summary • 100 tpa H2 and ~380 tpa graphitic carbon • Carbon negative process with biogas feedstock • Construction & Phase1 co
Slide 30: Commercial demonstration plant current status
29 Hazer Group – Strategy Update – June 2023 Commercial demonstration plant current status Milestones to Ready for Start-up (RFSU) Phase 1 plant construction Phase 1 commissioning, testing & debugging Heat exchanger materials delivery Mark-1 reactor forging & heat treatment Hot constructio
Slide 31: Project Pipeline
Project Pipeline Partnerships and scale-up into target markets
Slide 32: Overview of key development projects
31 Hazer Group – Strategy Update – June 2023 Overview of key development projects 1 2 3 Burrard, Canada Chubu, Japan Montoir, France • Utilises existing fuel terminal site • Existing LNG import terminal or power • Existing LNG import terminal site • H2 to be used in gas blending station site identif
Slide 33: Collaborating with major energy companies in Canada
32 Hazer Group – Strategy Update – June 2023 1 Collaborating with major energy companies in Canada Partnership with Suncor and Fortis to develop a 2,500tpa hydrogen facility in Burrard, Canada • Concurrently scaling up technology 25x from CDP $52B CAD* • MOU signed in Feb 2022 with Suncor and Fortis
Slide 34: Transformational project in Japan market
33 Hazer Group – Strategy Update – June 2023 2 Transformational project in Japan market Hazer successfully expands its relationship with existing partner Chiyoda to jointly prepare a development plan with Chubu Electric for a Hazer facility in Chubu, Japan Preparation of a Project Target H2 producti
Slide 35: Advancing collaboration for first project in EU
34 Hazer Group – Strategy Update – June 2023 3 Advancing collaboration for first project in EU Commercial facility to be located at the existing LNG import terminal in Montoir-de-Bretagne, France • Partnering with ENGIE, a French multinational utility • 2022 PFS confirms Hazer can meet EU frameworks
Slide 36: Growth & Monetisation
Growth & Monetisation Commercial scale projects, global portfolio
Slide 37: Building leading position in a rapidly growing market
36 Hazer Group – Strategy Update – June 2023 Building leading position in a rapidly growing market Hydrogen will play a key role in the decarbonisation of hard-to-abate sectors Current market 500 MTPA ~95 MTPA in 2050*1 © Getty Images Hazer First Mover Advantage 1International Energy Agency (IEA) -
Slide 38: Illustrative plant economic indicators
37 Hazer Group – Strategy Update – June 2023 Illustrative plant economic indicators Illustrative Plant (50ktpa H2 ktpa) Cash Flows* 500 400 Illustrative Plant Owner Returns: 300 • 50 ktpa of H2 production, 195 ktpa of graphite 200 • NPV8 at FID (20 years) ~A$390mln (~US$270mln) 100 • Project IRR ~24
Slide 39: Growth ambition – 10 plants in 10 years
38 Hazer Group – Strategy Update – June 2023 Growth ambition – 10 plants in 10 years Potential for over 500 KTPA of Hazer installed H2 capacity across target markets by 2035 2023 Current Portfolio 2035 Aspired Portfolio Current Plant Pipeline: 3 1. North America – Burrard and other US Plants 4 2. As
Slide 40: Cost ambition
39 Hazer Group – Strategy Update – June 2023 Cost ambition Competitive Hydrogen Cost in Target Markets: • Cost of Production correlates strongly with feedstock gas and power prices • Targeted H2 cost per kg therefore varies across target markets • Cost-competitive with clear pathway to optimize furt
Slide 41: Compelling investment case
40 Hazer Group – Strategy Update – June 2023 Compelling investment case Advanced, disruptive technology with strong competitive advantage. 1 technology serving 3 markets Co-located with end-user infrastructure enabling shorter pathway to CO2 reductions for hard-to-abate sectors Clear commercial path
Slide 42: Hazer Group Ltd
Hazer Group Ltd ASX:HZR Investor Relations Enquiries: contact@hazergroup.com.au Media Enquiries: hhowlett@we-worldwide.com 41
Slide 43: Abbreviations and units used
42 Hazer Group – Strategy Update – June 2023 Abbreviations and units used ARENA Australian Renewable Energy Agency CCS Carbon Capture & Storage CDP Commercial Demonstration Plan FID Final Investment Decision IRR Internal Rate of Return KTPA thousands of tonne per annum LNG Liquified Natural Gas MOU
Slide 44: Assumptions and notes
43 Hazer Group – Strategy Update – June 2023 Assumptions and notes Technology/Project Risk Slides 35-40 assumes that the Commercial Demonstration Plant demonstrates that the Hazer process technology is effective at producing graphitic carbon and high purity hydrogen consistently and reliably as has