Australian technology company Hazer and U.S. science, technology and engineering company KBR have entered into a binding alliance agreement to commercialize and license Hazer’s proprietary methane pyrolysis technology in the ammonia and methanol markets. Moreover, the parties have agreed to pursue licensing opportunities in decarbonizing hydrogen markets.
The initial term of the alliance is six years, with an option to extend subject to the achievement of performance metrics, Hazer revealed, adding that the companies plan to collaborate on the development of a design package for its facilities targeting hydrogen capacities of 50,000+ tonne per annum as well as the global sales, marketing and licensing of its technology.
The total cost of the alliance work program is anticipated to be in the range A$3-5 million (approximately $1.9- 3.2 million), of which KBR will reportedly contribute approximately A$3 million (approximately $1.9 million). It is understood that the agreement can terminate if licensing performance metrics are not met.
Jay Ibrahim, KBR’s President – Sustainable Technology Solutions, commented: “KBR’s proven global expertise in deploying sustainable technology solutions complements Hazer’s leading methane pyrolysis technology, making us ideal partners. Our market assessment and due diligence have highlighted Hazer’s potential to decarbonize the global ammonia and methanol sectors. We are excited to partner with Hazer to provide a compelling lowcarbon hydrogen production solution to meet growing global demand.”
Glenn Corrie, Hazer’s CEO and Managing Director, said: “We are excited to be joining forces with KBR to commercialise Hazer’s world-leading clean hydrogen technology on the global stage. This is a transformational transaction for Hazer coming at a critical time when the world urgently needs affordable, low-emissions hydrogen to decarbonise legacy hard-to-abate industries.”
“Building on the momentum of our successful Commercial Demonstration Plant and technology test program, which laid the foundations of commercialisation last year, this partnership represents a strong endorsement and the next logical step in delivering on our strategic roadmap and unlocking long-term value for shareholders. KBR has the scale, capability and reputation to help accelerate the deployment of Hazer’s technology at industrial scale. We see immediate potential in the ammonia and methanol sectors – industries with significant CO2 footprints and strong demand for clean alternatives. KBR’s market leadership, global reach and execution strength make them an ideal partner to bring our vision to life.”
To note, Hazer is said to have a customer pipeline comprising over 40 potential license opportunities in addition to currently announced projects, and this transaction reportedly enables the acceleration of the company’s business plan. Additionally, according to Hazer, it “substantially” boosts the company’s ability to scale and deploy its technology at an “unprecedented” pace, increasing the likelihood of achieving the goal of ten licensing deals in the next decade.