Hazer Group Limited

and Chief Commercial Officer Luke Cox, who will take you through the June quarterly report and provide an update on recent operational and commercial progress. I'll now hand over to the team to run through the presentation.

All right. Thanks, Simon, for the introduction. Good morning, everyone. Great to have you on board and welcome to our Q4 webinar. Joined on the call, as Simon said, by Tom Kulikin, our Chief Operating Officer, and Luke Cox, our Chief Commercial Officer. And together, we're going to take you through our quarterly results and we'll provide an update on our key developments across our business and all the progress that we're making towards commercial deployment. It was an important quarter for Hazen as we continue to execute on our strategy and build momentum across all of the aspects of our business. We're running and chewing gum at the same time. We're focused on scale up. The commercial projects that you'll see this morning, we're obviously expanding our project pipeline, advancing that important graphite commercialization phase, and then strengthening our business at the corporate level. If we just jump to our vision, I know you're aware of our vision. We are transforming natural gas into clean energy in the form of hydrogen and a critical mineral in the form of graphite. We're doing this with no direct process emissions. Why is this important? It's important because we're serving industries as a technology and as a process that are amongst the hardest to decarbonize and the most difficult to electrify. There are industries like steel, chemical industries, the refining industry, ammonia, petrochem, data centers, power, and that portfolio is expanding. And they're all industries that need an affordable, practical, clean solution today and not decades from now. Why Hazer wins? It's worth reiterating some of the very core strengths of our process. We're a truly unique, world-leading proprietary solution. I often refer to it as one process that serves two very valuable markets. We produce two strategic projects, the world products that the world needs. Our competitive advantages you can see on the left, they're very clear. We win on cost. we win on emissions, we win on producing a very premium graphite co-product and importantly we win on scalability and all of this is driven by proprietary aspects of our process like the catalyst and our reactor and driving out very low energy intensities that allow us to effectively produce some of the lowest cost hydrogen in the world today. If we just jump to the next slide, it's worth reiterating that cost advantage. It's an extremely compelling competitive advantage for the company. We believe, based on economics and all of our work that we've done on the scale up that Hazer delivers one of the lowest cost hydrogen, clean hydrogen production pathways in the market today. It's underpinned by almost two decades of scale up work. It's underpinned by $140 million of capital deployed, robust engineering definition, low energy intensities, valuable graphite. And if you look at that chart on the right, you can see that at scale, Hazer is on cost parity with conventional steam methane reforming, that's SMR. That's the incumbent to dirty carbon intensive process that the world is using today. And you can see that this is a significant point because customers can switch to Hazer without paying a green premium or a cost premium. And that puts us in a very, very strong position. Comparatively, if you cast your eyes on the chart, you can see how we compare against some of the clean hydrogen pathways where a third of the cost of blue hydrogen which is SMR plus carbon capture and we're comfortably a seventh of the cost of green hydrogen which is prohibitively expensive and this was underlined by Orica's recent announcement on their green hydrogen FID, which based on publicly disclosed capex and government funding numbers, we estimate their hydrogen cost to be around $15 a kilogram. So you can see $15 for green as a real price point in Australia versus Hazer, $1 to $2 in Australia. So an extremely competitive position for us. So in summary, the potential for us is to remove the green premium in steel, ammonia, SAF and other industries. And it's why our tech is so attractive for projects like YLR Liquid Fuels and other industries where customers don't want to penalty switch across to a clean solution. If we just jump into our highlights, we posted a solid quarter of performance. We continue to build on those important foundations of our global licensing platform. A really important major milestone during the quarter, we completed our process design package, or PDP as we refer to it. There's been months of work with KBR to get a commercial design package ready to put in front of customers that is a commercially ready solution. that is now accelerating our market engagement with existing and new clients. So Tom will talk to that shortly. Secondly, our strategic projects continue to progress with momentum across Canada, in Korea with POSCO, in the UK with EPP. They're all advancing towards the next commercial execution milestone. We continue to see strong momentum and traction in steel. Hazer unlocks. the commercial viability of green steel economically. We see it in the YLN numbers, we see it in POSCO, in Korea with POSCO, and we have other collaborations in steel that are underway that are confidential at this stage. But we're absolutely convinced that the synergies of hazer and steel are a compelling combination that will be unmatched in the market. Graphite is a serious differentiator and I can know you will start to see that through all of the graphite work that we're doing and the commercialisation strategy for that is taking shape. We're now converting qualification and all of that R&D work, we're converting that into commercial, tangible value for the company. You've seen our deal with Green Steel that is a $30M off-take deal. The Hallett deal last quarter was a good example of this and Tom will speak to that shortly as well. And finally, our pipeline continues to expand We've got strong engagement across liquid fuels, data centres, clean ammonia, other sectors, ourselves with KBR. We're very encouraged by the level of engagement. They're bleak players. They take time to get into a commercial shape and we'll provide more insights into this very shortly. Corporately, you can see the numbers for yourself. We ended the quarter with a strong funding position of $13 million. That's that very extended runway now through some significant commercial milestones ahead. It's underpinned and reflects a low operating cash burn of well under $2 million a quarter. and strong financial stewardship, but we're still investing in growth. We're a small team, but we put and allocate the capital towards the projects and the opportunities and the work that effectively will turn the needle for Hazer. Looking ahead, I'd expect that liquidity to be maintained, more R&D rebates coming in in the next quarter, more grant funding, as you can see, $2 million to $3 million there still to be unlocked. I'd expect more revenues to come through as we start to now execute some of these new projects. And of course, we've got that KBR funding contribution of up to $5 million. So overall, a quarter that's been very important for us to move beyond technology into commercial scale up, strengthening in that customer confidence and positioning Hazer for global licensing and deployment. I think this is a good point for me to hand over to Tom to update you on our commercial design package as well as some of the key projects. Over to you, Tom.

Thanks very much, Glenn. Good morning, everyone. Great to see so many of you online. This is a very good turnout for us. It's a pleasure to be here today and to run you through what Glenn has as the highlights there and break them down a little bit into more detail. We'll start with the design package. So a PDP as Glen called it, the process design package. That's the core blueprint for any technology provider. We always have to have this core blueprint that we can then use as the guiding document that sits behind and it's actually a package of drawings, equipment lists, details and advisory to engineering so that they can then build out the project from there. So when we develop a technology to that large scale, one of the first things we do is put together a design basis or a process design package, which is what it's called. So our PDP that we worked on, we worked that in conjunction with KBR. That provides a standardised 30,000 tonne per annum hydrogen production plant. It confirms that it's scalable. It confirms the economic viability of the Hazer process. And in conjunction with KBR, we take all those process, mechanical, electrical designers and design input, and we combine that with our experience running the CDP and the Hazer operations to develop a safe, reliable and low capex facility. So we get to do a lot of that optimisation before we have to sit in front of customers and we're not wasting their time optimising our process. We've actually got pretty good handle on the fundamentals there. So KBR Sustainable Technology Solutions President Jay Ibrahim actually commented on this when we announced the PDP completion. He's very complimentary about the maturity of the technology at this stage and it really does help KBR launch straight into those customer engagements. Having KBR behind the PDP gives us large credibility, so large project credibility, and it allows the Hazer plant design, it's a major de-risking step for clients because they're not just looking at the Hazer Company as the one who's producing this technology now at an industrial scale, but some of the largest engineering houses in the world are now involved. So it de-risks that financial investment decision when they're going through their project. Importantly, it does strengthen our commercial readiness and supports the global licensing opportunities. It drives increased engagement and we are actually seeing that we're engaging with potential projects. We get to customise that design package then to their particular needs. They'll have their own power configuration, their own gas supply. They'll have different purity requirements for the hydrogen and graphite and they'll also have their own specific capacity. So we put all of that into our base PDP and then actually customise it for the client. So this is a pretty standard process. When developing a project at the assess select phase, you would always want that design package to understand what the heart of your process looks like, and then you'd build out your whole facility around that. So it goes right through to engineering, financial investment decision, and then on into execute as well. Next slide, please, Simon. I'm talking a bit here for our R&D and our CTO, Tim Forbes, who heads up this excellent work we're doing on proving the chemistry up. So this quarter we made significant progress in the reactor scale-up and design validation. We've achieved a lot in the area of actually physically validating through experiments, what our models have been showing us and what we've done at the CDP as well. So it's all cross-referenced back to that demonstration work that we've done. Some of the photos here, that's a lot of technical equipment, but this actually shows process rigs we have around Australia. So one in Sydney, one out in Glen Innes and here at our Woodman Point CDP as well. The CDP is still a really key asset for us. Our folks are down there every day. We showcase the hazer plant regularly and we have people coming through all the time, but also our R&D folks are down there and they're actually constantly implementing new experiments in fluidisation, especially on the graphite. It gives them a really good indication and visualisation of how the graphite behaves in the system. So we prevent one of the key risks that sits around methane paralysis of fouling and We've got that fairly well under control. We've also been working in the same space with PSRI in Chicago, who are the world's experts. Their expertise has supported more than 10 successful fluid bed technology scale-ups. So we do feel like we're in the right hands with the global experts working on that. So we've actually completed advanced fluidisation, entrainment and mass transfer testing with those guys. This is actually fundamental. And it's also really enhanced our kinetic modelling, which has just moved in leaps and bounds. It improves the rigour of our commercial design basis. So when folks ask us for a design, for a size and for an equipment spec, it gives us a lot more confidence in that scale up and supports the commercial readiness as well. All right, moving to Canada. We have a solid quarter of progress with the project advancing on several fronts in Canada. So KBR is now engaged with us in expediting their engineering works and for site location. Development work is focused on the 2,500 tonne commercial facility. In parallel, development engineering work, including costing estimation, is being done to support economics. So we're looking at exploring alternative economics. And we're defining the process basis with our new PDP and assessing site-specific requirements and evaluating the pathways for engineering. FortisBC has actually expanded the engagement with Hayes, strengthened by KBR, and we're now looking at development activities across a broader range of project scenarios. So there's a lot happening behind the scenes. As we get technical and commercial discussions finalised, we'll brief the market on that as well. Canada and North America more broadly remains a very attractive jurisdiction for Hazer. It's low-cost gas, quite clean power, especially in Canada with all of the hydro. A clean power grid means a very low CO2 footprint for the Hazer process itself. It supports, it's got very supportive government. So the provincial government in BC have been fantastic. The federal government are also really good. And Fortis remains a very supportive partner. There's a clear commitment to continue progressing this work forward and getting to the long-term project success. They have a very big vision for what they see as the Hazer deployment in Canada and more broadly in North America. EPP, Glenn mentioned as well, so Energy Pathways, they're developing that large-scale infrastructure project. So I guess our engagement with EPP has really deepened as well. It's the first commercial project to progress under the KBR Alliance, so that's a paid concept study for EPP's proposed facility there in the UK. And it demonstrates confidence that project developers are actually looking at the Hazer process as being one of the unlocking capacities for these project developments. It does do large scale, low emissions hydrogen production. So the concept study sits within that broader Marram Energy Storage Hub, the MESH project, which you can see the pictorial of there. And the UK government has designated that as a nationally significant energy development. So it's definitely getting a lot of notice in the UK. Sites identified with associated British ports. So the port of Barrow in Cumbria, which is near the Lake District, sort of on the northwest of the UK, which is just near the offshore fields that they need to be working with, is sort of identified as the best opportunity for the site. So it's quite a big milestone for them to have that. And working with the MESH team, you can see in the pictorial there, we're actually looking at integrating the hydrogen into the supply chain where they can produce a low carbon hydrogen, the high quality graphite for domestic and for international applications. And critically, some of that hydrogen will be used for low carbon ammonia. So it's a real integration here where we've got hydrogen and ammonia working together. This is an excellent application for the integration with our partner KBR. They license over 50% of the world's ammonia production. So it links in really well. I think at this point, I'll pass over to Luke, if that's okay, Luke, for some updates.