Hazer Group Ltd. · ASX:HZR
Hazer — Investor Presentation (July 2018)
24 slides from Hazer's investor presentation, Jul 26, 2018
Slide 1: Hydrogen Production Disruption
For personal use only HYDROGEN PRODUCTION DISRUPTION HAZER GROUP LTD ASX:HZR July 2018 hazergroup.com.au 1
Slide 2: Value Proposition
VALUE PROPOSITION For personal use only Disruptive, global and scalable low cost, low emission solution to a decarbonised hydrogen future. Technical development successfully progressed to enable transitioning into commercial phase with a strong focus on additional partnerships and offtake. Multiple
Slide 3: Why Current Hydrogen Production Is Ripe for Disruption?
WHY CURRENT HYDROGEN PRODUCTION IS RIPE FOR DISRUPTION? For personal use only Production is high in emissions or expensive Significant CO2 Fossil fuel emissions reforming • 95% of total global CnHm + [O] COx + H2 hydrogen production • Chemically equivalent to direct combustion, but less energy effic
Slide 4: The Hazer Advantage
THE HAZER ADVANTAGE Capturing more value of feedstock gas and dual revenue streams For personal use only -$ 25% Hydrogen Steam Methane Reforming 75% Carbon (SMR) Hydrogen gas $ Natural gas composition Hazer Process Graphite (carbon) $ hazergroup.com.au 4
Slide 5: The Breakthrough
THE BREAKTHROUGH Methane Decomposition - Simplified approach to old science For personal use only Traditional methane decomposition research Catalyst Synthesis Decomposition reaction Catalyst recovery Natural gas Hydrogen Raw catalytic Add Add support Catalyst Catalyst Supported Graphite material di
Slide 6: The Hazer Process
THE HAZER PROCESS Hydrogen and graphite from natural gas For personal use only Hydrogen Natural gas ~US$100 billion pa* Synthetic graphite Iron-ore ~US$14 billion pa^ CH4 2H2 + C * “Hydrogen Generation Market – Global Trends and Forecasts to 2019”, Market to Markets report, pg 45 ^ “Global Market St
Slide 7: Hazer Hydrogen Comparison
HAZER HYDROGEN COMPARISON Positioning as a low cost, low emission alterative For personal use only Greater CO2 emissions (per kWhr) Targeting low cost, low than direct combustion of fossil emission hydrogen production fuel^ Significant emissions reductions. Coal Gasification (18%) Partial Emissions
Slide 8: Opportunities in Three Major Global Markets
OPPORTUNITIES IN THREE MAJOR GLOBAL MARKETS For personal use only Industrial hydrogen Clean hydrogen and energy Synthetic graphite US$100 billion* US$12 billiona by 2023 (FCV) US$14 billion^ Low emission, low cost Multiple applications High quality, low cost alternative graphite source Currently pri
Slide 9: Multiple Clean Hydrogen Applications
MULTIPLE CLEAN HYDROGEN APPLICATIONS For personal use only Clean energy – Vehicle Clean Industrial Carbon Capture fuel and stationary power Hydrogen Market and Utilisation (CCU) Fuel Cell Vehicle (FCV) models Traditional industrial hydrogen An alternative to CCS (Carbon being developed. users are se
Slide 10: Industrial Hydrogen Markets Transitioning to Low Carbon Hydrogen
INDUSTRIAL HYDROGEN MARKETS TRANSITIONING TO LOW CARBON HYDROGEN For personal use only Conceptual Hazer plant integration into steel production with CCU Carbon Capture and Utilization (CCU) Waste to energy Steel CO2 Emissions Iron Ore Plant Hydrogen (Reductant) CCU/ Hydrogen (CCU Usage) Methanol Gra
Slide 11: Hazer Graphite
HAZER GRAPHITE VERSATILE PROPERTIES – MANY OPPORTUNITIES For personal use only • Current graphite market value in excess of US$ 14 Billion per annum^ • Hazer graphite structure and properties can be altered to potentially suit different market by changing the process conditions • Graphite purity ex
Slide 12: Hydrogen & Graphite Synergy
HYDROGEN & GRAPHITE SYNERGY Potential to be a major part of the revolution in future mobility For personal use only Electric Vehicle Fuel Cell Vehicle Graphite in Power Unit Graphite in Lithium-Ion Graphite in Batteries Graphite in Fuel Lithium-Ion Graphite in Cell Stack Batteries Power Low carbon H
Slide 13: Strong Commercial Progress Since IPO
STRONG COMMERCIAL PROGRESS SINCE IPO Milestones For personal use only Non-binding MoU with Primetals Technologies GmbH Design options begin for small HZR listed on ASX in Dec 2015 (Siemens and Mitsubishi Heavy Industry) hydrogen demonstration plant with to investigate integration of Hazer Process po
Slide 14: Collaboration with Mineral Resources
COLLABORATION WITH ASX:MIN For personal use only Investment and Commercial Partner March 2017 MIN made a A$5M strategic placement and significantly increased their stake in Hazer to 14%. December 2017 binding agreement for the potential development of a commercial scale synthetic graphite facility;
Slide 15: Multiple Reactor Options
MULTIPLE REACTOR OPTIONS Using Hazer Process For personal use only Hazer Reactor External Reactor MRL/HZR Reactor Fluidised Bed Reactor Rotary Tube Reactor Paddle Tube Reactor FBR RTR PTR Reactor flexibility allowing Alternative off the shelf Reactor tailored towards for a range of graphite reactor
Slide 16: Proposed Pathway & Potential Markets
PROPOSED PATHWAY & POTENTIAL MARKETS For personal use only Hydrogen focus with graphite by-product FBR/RTR PTR Graphite focus with hydrogen by-product hazergroup.com.au 16
Slide 17: Scale Up Technical Development
SCALE UP TECHNICAL DEVELOPMENT For personal use only COMPLETED COMPLETED Q3 2018 TBA - 2019/2020 TBA FBR/RTR FBR/RTR Fluidised Bed Reactor (FBR) FBR 1ST Gen FBR 2nd Gen FBR Demonstration Commercial Lab scale Pre-Pilot Plant Pre-Pilot Plant Plant Plant 1 kg/day^ 4.5 kg/day^ 5 - 20 kg/day* ~100 - 500
Slide 18: Multiple Commercial Options
MULTIPLE COMMERCIAL OPTIONS Using Hazer Process For personal use only License Partnership Build, Own & Operate License IP to 3rd parties and Share capital & operating Hazer can construct own and generate high margin royalty costs with hydrogen or operate plants and sell products graphite partners Cu
Slide 19: Reduce Cashburn & Increase Newsflow
REDUCE CASHBURN & INCREASE NEWSFLOW For personal use only $ Reduce Operating Scale Up Development Graphite Development Costs • Increase production rates and product quality for PPP • Ongoing development in Li- ion batteries • Cash burn reduced in • Begin design process for demonstration plant and bu
Slide 20: Strong Leadership
STRONG LEADERSHIP Commercial, Technical, Contract & Regulatory expertise For personal use only Mr Tim Goldsmith Mr Simon Rushton Chairman NED • Over 20 years as Partner with global • Executive General Manager - professional services group PwC Corporate Development at Mineral Resources Limited • Lead
Slide 21: Tightly Held Register
TIGHTLY HELD REGISTER Top 20 own 42% For personal use only Capital Structure Share Price & Volume Current Shares on Issue 88.3m 3.5 Market Capitalisation @$0.265 $23.4m 0.6 Cash @ 31 March 2018 $7m 3 Total Options 68.4m <$0.30 Options Exercise Dec 2018 30.2m 0.5 2.5 Diluted Market Cap (<$0.30 option
Slide 22: Why Invest?
Why Invest? For personal use only Disruptive, global and scalable low cost low energy solution to a Decarbonised hydrogen future. Technical development successfully progressed to enable transitioning into commercial phase with a strong focus on additional partnerships and offtake Multiple potential
Slide 23: Disclaimer
DISCLAIMER Important Information For personal use only This presentation has been prepared by Hazer Group Limited (“Hazer” or “the Company”) This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase sec
Slide 24: Hazer Graphite Shows Promise in Li-ion Batteries
HAZER GRAPHITE SHOWS PROMISE IN LI-ION BATTERIES For personal use only Preliminary testing of Hazer graphite in coin cell Li-ion batteries show equivalent performance to commercial synthetic spherical graphite. hazergroup.com.au 24