Hazer Group Stock

Good morning everyone and thank you for joining us today. On behalf of Hazer Group, I'd like to welcome you to this September quarter Investor Webinar. [Operator Instructions] Presenting today is Hazer Group's MD and CEO, Glenn Corrie; and COO, Tom Coolican, will take you through the September quarterly report and provide an update on the recent operational and commercial progress.

I will now hand over to Glenn and the team to run through the presentation.

Wonderful. Thank you, Simon, and a very good day to everybody, and welcome to our quarterly webinar, thanks for dialing in. Our report went out yesterday. Hopefully, you have had the time to look at some of the highlights in that, but we will go through some of the headlines through the call. I think this will take about 20 minutes or so because we have had a few questions come through overnight. Quite keen to get on to those, and any questions that folks from the participants from the call want to add through our portal. Tom and I, thanks, Tom, for joining as well. We will both take you through our quarterly results. We will provide an update on our commercialization strategy. I would just say upfront that it was an important quarter for Hazer as we continue to drive forward our strategy and build the momentum across all of the pillars of our business.

Let us dive straight in, if we can just go down to slide 3, please. Look, I know many of you are aware of our tech, big picture. Simplistically, we are transforming natural gas or any methane-rich gas into 2 products that the world needs, clean and affordable hydrogen and very high pure form of carbon in the form of a graphite. We do not have any direct process emissions in the process itself. The X factor that we like to talk about, or the secret sauce or the secret solid, is an iron ore catalyst. We have, over the last 15 or 20 years, developed Hazer into a world-leading proprietary solution that is now gaining global recognition with big corporations and big think tanks around the world, and that is a place that we are very excited about, with our tech and the market. Our competitive advantages are clear.

You will see those on the left-hand side of this chart. We win on cost and emissions, and I will talk to that shortly. We win on the production of a premium or a high-grade form of carbon graphite as a co-product. We also, importantly, through some proprietary aspects of our hot equipment and reactor, we win on scalability. Some pretty important components to our technology. Just drilling down on our cost picture. You have seen this slide before, but our cost advantage is very compelling, and it continues to strengthen for reasons I will explain very shortly. Hazer is capable of delivering one of the lowest cost hydrogen pathways into the market today, and that is evident from the chart. What is driving that cost advantage is several factors.

Our proprietary catalyst that I talked about, the capital efficiency, we have been working now with KBR for 9 months on developing the design package, and that is reinforcing our cost advantage and our capital advantage in terms of the capital stack. Thirdly, our low energy consumption at scale. We are driving down the energy consumption to under 10-kilowatt hours per kilogram of hydrogen, and I will explain what that means in terms of emission shortly. Of course, we have got that valuable graphite co-product. So they are the major constituents of our competitive advantage, and they all come together in terms of that turquoise wedge there on the chart on the left.

If you then look at the chart and the orange line, we are on cost parity with conventional steam methane reforming, which is almost the entire, the majority of the market today, the hydrogen market, and that is the incumbent dirty carbon-intensive process that we are trying to disrupt, and that is the bar in the middle. So we're 1/3 of the cost of that process, plus carbon capture and storage, if it is available, and it is not always available. You will see relative to the bar on the right, electrolyzers, we are easily or comfortably a seventh of the cost of electrolytic-produced hydrogen or green hydrogen, as like to refer to, where we know the energy intensity chemistry-wise is at least 7X on Hazer. Probably more in most instances, but theoretically, that is the chemistry and that is the difference between us and electrolyzers.

You see, we undercut SMR and carbon capture, and we undercut 7X on electrolytic-produced hydrogen. So this advantage, we can deliver a clean hydrogen product stream into industries, potentially removing the majority of the green premium in steel, in ammonia, in liquid fuels, and other industries like refining and data centers and power and other effectively industries that require a hydrogen product stream. Shifting to emissions, it is the first time we have shown this, but we do it with industry-beating emissions. So there is a lot in here, but let me try and unpack it for you. Positively, our customer and client engagements and discussions are now moving beyond cost to also emissions, which is a really positive step for the engagements that we talk about on the global stage. Let us just jump straight to the chart.

SMR is that bar in the middle that we referred to in the previous chart. We know that is a very carbon-intensive process because it combines gas with steam and water. So every ton of hydrogen produced is associated with 10 tons of CO2. That is the ratio of that process. That is today's industry, and that is where we are trying to disrupt. So that is a really important comparison with Hazer on the left. Now, because we have 2 product streams, hydrogen and graphite, we are able to allocate our emissions across to share the emissions across those products. Even on a relatively dirty grid, we can reduce the emissions of SMR by over 80%. Okay, that is just connected to grid. Of course, we can be even cleaner on a renewable or a much cleaner power grid, which we foresee in the future.

But on today's relatively dirty grid, that's the sort of comparison that we can achieve. Then relative to the right, the orange little line, we can also undercut electrolyzers that are plugged into the cleanest of cleanest grids, and that would be one where you'd expect to see something in the order of 80% renewables, which is, it's a big ask, but that's fairly forward-leaning for electrolyzers. But you can see immediately that we are equivalent on the dirtiest grid to one of the cleanest options for electrolyzers. So we're very, very competitively positioned from an emissions perspective as well. The reason for that is electrolyzers are very power-hungry. They're 55-kilowatt hours per kilogram relative to our 8 to 10. So you can see immediately the benefit of the chemistry there.

Now, we've shared this with government, and other groups in Australia, but also internationally, and we are starting to see policy changing. We've seen that literally in the last few weeks with the GO scheme in Australia. It is now starting to encompass pyrolysis and methane pyrolysis as a viable pathway in the hydrogen pathway system. So if you can't win the game, we're trying to change the rules around the policy, and that's a big area that we're trying to spend time at the moment. Just turning to our highlights on slide 7. You've seen the report, went out yesterday. Look, I would say it's a very good quarter. We continue to strengthen the foundations of our global licensing platform. I won't go through all of these. We'll talk about them in detail shortly. But we are approaching a real inflection point. We've got a de-risked world-leading technology.

We're getting market traction. You can see that coming through. The strategic alliance with KBR is delivering real value. We've locked in their first originated deal in Japan, and there's more in the pipeline behind that. We've got a strong global project portfolio that is growing. We've got that expanding pipeline of material opportunities that are now coming through. We're kicking goals on graphite, which Tom will refer to shortly, but we're validated across steel, asphalt, bitumen, concrete, cement, and we're now testing in battery. So we've come a really long way in graphite. And we're starting to see the tailwinds of the hydrogen market strengthen as well, and that is positioning us as a leader in this space, which you'll see shortly. And we're being recognized by some of the biggest and best think tanks and corporations for what we can do with the hydrogen pathway.

On funding, we had a couple of questions on funding that came through overnight. We finished the quarter with just shy under a $13 million funding position. That provides us with a very extended runway through significant commercial milestones ahead. That was strengthened last week by the receipt of $2.3 million that we received for our R&D rebate. Neil and the team have done a very good job there because we're also receiving, probably in the next quarter, a rebate for our international expenditure. So there's more flows coming there. We've got that $2.3 million grant from W.A. that's still to be earned. If you saw in our annual report, we've lowered cash burn 30% year-on-year. So you'll see that our cash burn on any given quarter is between $2 million and $2.3 million.

So you can immediately see that we've got that 12-month to over runway in terms of our commercial pathway heading into a new revenue cycle with some of the projects that Tom will share shortly, more grants, and we're targeting on maintaining that robust funding position on a fully discretionary business. Turning to Whyalla. There was quite a lot of news flow on Whyalla during the quarter. We had some questions on this that came through the quarter or also overnight. The process is still very live despite some delays in the decision. They've pushed the decision process out to the first quarter of next year. That said, the state government has been public in trying to complete that process by the end of this year. This remains a major catalyst for Hazer. It is a very large-scale deployment of our technology in our backyard.

It's a really exciting project that we're very keen to win. The other news that came through was that the blast furnace is now being decommissioned or closed down. Whilst that was a challenging news for the employment base there, it is a very positive signpost for the transition of Whyalla into the green modernization. It's moving away from the blast furnace now through to the DRI and the electric arc furnace pathway, which is where Hazer plays that key role. So we'd expect to see that come forward and accelerate into a large-scale deployment. M Resources is doing a very good job. We continue to work with them very closely. We spend a lot of time in South Australia. There's been some excellent feedback on the bid from all stakeholders there.

It really is the perfect fit for our technology, and on the assumption of a win, it is the poster child for a bunch of other steel opportunities that we are currently pursuing worldwide. On the next slide, you will see that more broadly in the steel industry. The steel industry is a big industry with a very big problem, of course. It's 9% of the world's CO2 emissions. And it is desperate for a solution like Hazer. We put out a white paper a week or 2 ago that details our strategic fit with low-emission steel. It really is where everything comes together for us. The industry is shifting away from that blast furnace. That's that box on the left, which uses coal to reduce iron ore. It's incredibly carbon-intensive. The industry is shifting to the right-hand side, which is DRI, the direct reduction of iron.

And the electric arc furnace, the EAF, where hydrogen is used as the feedstock instead of coal, and that is expected to reduce emissions by up to 85%, potentially higher. So it's a big win for the industry, and it's a big win for Hazer, where everything comes together in terms of hydrogen, carbon for the EAF, and of course our iron ore catalyst. So a lot of synergies in there. But big picture, our cost advantage here enables this industry, green steel, to be economically viable, and we see that time and time again coming through in the economics of all of the discussions that we're having with counterparties.

I'll pause there and perhaps hand it over to Tom, you to talk through scale-up KBR and where we are with some of the key projects.

Of course, no worries. Thanks very much, Glenn. Good morning, everyone. I think we'll start with scale-up and the de-risking of the technology. As you can see here from the slide, we've stepped through scale-ups from lab scale to large scale, and our new clients are now looking at what they call first of a kind, or what we call FOAK, projects. KBR is along for the journey here, and the reason why we can provide these designs and plant designs is the due diligence they commenced back in the early days, all the way through the commencement of the alliance where we've worked together and the 30,000 TPA plant design. Which is, at the moment, from methane pyrolysis, there's nothing close in terms of the technology scale, and scale is really key.

Glenn mentioned earlier SMR, and that obviously is the target because we are looking at these large-scale hydrogen supplies, which would feed refineries, chemical plants, and especially ammonia to urea, which then goes on to become fertilizer, and these are massive key opportunities for us. With the emerging DRI in steel as well, KBR are very supportive of the large scale de-risking required to be able to do that. Our industrial users now rely on the scale and capacity of KBR when they're assessing the risk of these technology projects, and it significantly improves the Hazer value proposition because it's not just a small technology that you would license, but it actually has the full engineering house sitting behind it. I'd like to talk a little bit about the international recognition we've been picking up.

Maybe if we move to the next slide, Simon, we can discuss that. In the quarter, the International Energy Agency released its 2026 Global Hydrogen Review. Key themes were the recognition of the increase in hydrogen production globally, the feedstock security issues with the Middle East supply, and also the progression of methane pyrolysis as a valid industrial-scale technology. You can see here, importantly, IEA recognized that Hazer and KBR was the biggest listed scale design in their report, and scale is vitally important as we tackle steam methane reforming globally. SMR, for a single unit, easily does 50,000 tonnes per annum, and then multi-train, you can get up well over 100,000 tonnes per annum. In the big ammonia facilities and chemical facilities, these are the scales we talk about.

This is, as you can see here, catalytic methane reforming, methane pyrolysis, which is our technology, is now moving that 30,000 to 50,000 tonnes per annum per unit, and we do have upside in that as well. We're pretty excited to be recognized by the IEA. We're in their report. Their report is fantastic. It's dense. There's 269 pages to it. But it really does address hydrogen and the growth of hydrogen in the world as we see it, with KBR and Hazer sitting at the forefront of the large scale. This is consistent with our global messaging through Hazer and through KBR, and we're continuing to see that sort of strong inbound requests for the technology and technology understanding, which is what's growing the front end of our pipeline at the moment as well. Okay, onto more KBR news.

KBR has actually secured their first paid study, so this is a milestone for us, and Glenn mentioned it already. This is a large Japanese utility. They are evaluating hydrogen for the use in their power portfolio, up to 300,000 tonnes per annum, which is 10x our initial PDP and an enormous scale. It just goes to validate that the fluidised bed design and the scalability of our technology is something that can be used in the larger scale applications. This also builds on our existing partnerships. We have got a lot of work in, and we have been in Japan for a long time, so our partnerships with Mitsui, which is well known, and Chubu Electric, which also have done a pre-feasibility study.

Japan is also a market where we have done deeper research into the graphite, so looking at the value proposition of the graphite, and found, as they are a secondary producer, a number of really large applications, including steel making, where Japanese graphite would actually be a fantastic use for them. They are a country that continues to lead the way when it comes to hydrogen from LNG. The option for CCS is not there, so Hazer is a very good fit in Japan.

Glenn, just the thought of 300,000 tonne per annum plant, I mean, the licensing scale on that is next level.

Well, I mean, we talk about, yes, thanks, but we talk about 50,000 and the scale of the license fee around that, so I would multiply that by 6, and I think that is the platform we are trying to build. Very exciting if we can take that one further. Thanks, Tom.

Sure. That fits into the 10 in 10. That is 3 of the 10.

Yes.

Right. Moving on to the projects. We have had some questions come in about the projects as well, so I will try and address some of those questions. And thanks very much to Dave and the others who sent in questions on that. We see Fortis moving through towards a formal engineering project process at the moment, with the engagement of KBR as a large-scale developer. And I wanted to just give a little bit more color there on Fortis as well. Being a utility supplier in Canada, they have 1.3 million domestic users and also industrial users. They are relatively conservative, and they have been de-risking every step of the way. As we step through, and Glenn has mentioned before, we find the pace of large companies hard. We wish they would go faster, but they are consistent. They are progressing towards FID.

With the support of KBR, we have transformed that project into a larger and more real opportunity. They do spend a lot of time really focusing on making sure there are no missteps. So it does take a long time to move these guys forward. But we catch up with them regularly. They are still very supportive, and we are moving with KBR through to the next phase. So it is a key project for us, and we do feel that we still have very strong support in British Columbia and Canada federally as well. Okay, onto EPP. They are an early-stage developer, as we know, with a project of national significance in the U.K. So they have got that designation, which is great. Hazer remains the preferred pyrolysis technology due to its ability to scale, as we have talked about. So EPP's minimum target is 20,000 tonnes per annum and above.

From a hydrogen perspective, it really is, this is the technology that does that kind of work, and nothing is close. So that is a project that we continue pushing forward. Our first phase is done, and we are looking forward to pushing onto the second phase with EPP. They have also engaged with a specialist graphite company, which is called Hycamite. And that is specifically, we have discussed that with the company as well. They are investigating niche battery carbon, which we understand is related to government grants. So Hycamite is a niche graphite play. They use a reusable catalyst, and they have recognition in the EU Critical Raw Materials Act, as well as if they are using biomethane. And the U.K. government has got critical growth minerals as a specific target. So there is a lot of this niche graphite product which actually could be twined into the EnergyPathways project.

But from a hydrogen and production perspective and from a large-scale perspective for our graphite going into construction products and into roads, we remain preferred and/or supportive for this project going forward. All right, and then onto POSCO. So steel making, the seventh or eighth largest steel maker in the world. Hazer is really the right fit for their proprietary DRI technology. As we move forward, they have got a technology called HyREX. They are looking at our technology and proving up the technology. So we continue to stay close with POSCO as things progress. And the Korean area is a hot area for us at the moment. They are large steel making capacity around the world. I think it gives us....

Thanks, Tom. That's excellent. I actually love that slide 11 of the IEA, because I really think that shows that Hazer is taking on hydrogen head on.

Really reinforces that we win on emissions and that we win on cost. Importantly, we win on scale, and that's ultimately where we've got to get to, and that's disrupting steam methane reforming. That's where we're going to make the biggest difference in emissions and also enable the switching of technologies with the minimal cost for a customer. I think, look, we're on the right track and we're getting that global recognition. Let's just jump down to the project pipeline. This is a slide that we have used in the past. We thought we might bring this back in because it shows the growth of the portfolio. The red triangles are where we have live projects. You can see that is now building, and that's up to around 9 live projects. In addition to this, we continue to advance multiple opportunities.

The blobs, the purple blobs and the pink blobs, they represent live opportunities that we are currently pursuing. We put a table on the left that is a subset of the ones that I think are at the top of the list there, and those are opportunities that are spanning across super majors, liquid fuels in the Middle East, low emissions liquid diesel, steel, of course, we talked about at least 5 opportunities, and more recently, power, which is linked to data centers in the U.S. We talk a lot with U.S. firms. There is only one thing on the agenda at the moment, and that is power and how do you fuel and power some of these gigawatt scale, hyperscale data centers.

To get into that mix is exciting because, again, we can use natural gas, which is abundant in the U.S. and provide the clean energy into power to fire some of these mega scale facilities. That is an area that we're pursuing on a couple of opportunities as well. That's very exciting. Our vision, of course, is 10 in 10, as Tom referred to. We're building that portfolio, and at steady state, we would like to be thinking about the company being in a FEED and in an FID every year for the next 10 years. That's sort of the portfolio that we're building with the pipeline that we've got. We're not short on opportunities. What we're doing is high-grading internally with KBR, ensuring that we put our best foot forward to win all of these. We won't win all of them.

I think someone asked a question around the Middle East. We are in a process. We are absolutely putting our best foot forward to win that. It is a very short list. We are very, very competitive and moving through that process. Again, if we win that with that tier 1 partner, it is a game changer for the firm. We will continue to lob in bids on those processes that are live. You can see how strongly competitively we are.

Maybe, Tom, back to you then, if that is okay, in terms of graphite, and then we will wrap up and open up the call for Q&A.

Yes. Great. Thanks, Glenn. So as you can see from this, we have got steelmaking, concrete and asphalt, thermal energy storage, critical minerals, and other industrial uses. Really, steelmaking is the first real high target for us that has actually had some commercial movement. We do have our first offtake LOI with Generation Steel here in Western Australia. We continue to do testing and analysis in the steelmaking value chain. Iron-containing graphite is looking like becoming really a serious contender in steelmaking. It is something that we think has a real opportunity. Concrete has taken big steps forward with qualification. So in structural and marine concrete as a performance additive, we are seeing some very good results and actually improving in performance time for concrete, which is great. In asphalt, we have had some excellent results, which we had announced some of those results this quarter as well.

Graphite is improving the strength and lifespan of asphalt. We have seen it improving the durability of the asphalt as well as actually reducing the carbon-intensive components of the asphalt as well in roads. We also have some initial results that displacing a portion of the bitumen binder, we are exploring that further. This is currently ongoing at the moment, but we have already got good results that show that we can do the heavy, dense, grade asphalt. That is what is required for freeways and major roads. Our next stage here is to actually really drill into what is the value point there and bitumen specifically, which is the product we are looking to displace a portion of. Bitumen is internationally produced in refineries and is shipped all around the world. It is actually a relatively expensive product.

Each offtaker we talk to or each producer of asphalt and roads we talk to says bitumen is one of their biggest headaches, both from a cost point of view and from a global warming potential point of view. We've had a few questions on asphalt graphite mix as well. What I can share with you is that roughly 15% of the mix has been tested, and that's where we've got our decent results from. It's something that we continue to push forward, but we're looking at things on a one-to-one basis as well. A kilogram of bitumen for a kilogram of graphite wherever possible. That gives us a good indication about where our base price points would be. We've also done some work here in graphite applications improving battery grade.

We recognize that it is a small, high-specification market for Hazer and that Hazer projects, especially the large-scale ones we're talking about, would be an enormous volume of graphite to put onto the market for batteries. Having said that, the upgrading and purification process means that not all graphite would actually end up becoming batteries, and most of it would go into those big construction materials, high volume, drop-in ready applications. We do see the potential value. We do see that purification can get us to a point where we have a high-grade material and not every client is going to want to do it. But those who are actually chasing that security of supply chain for their local environment, supporting critical minerals in governments around the world and decarbonization priorities.

We can see that this is actually something we need to have very solid research and very solid applications completed on. What we're doing at the moment is thermal purification, but also internally, we have our own technology, which is a patented technology called electrochemical purification. We start with our as-produced product at 85%, 95%. To get into a battery, you want to be 99.95%, and thermal purification gets us all the way with 99.99%. We have had questions on purification and whether or not we can use our electrochemical process because thermal purification in itself is actually a very energy-hungry process. At this stage, what we're looking at is electrochemical can actually bring the purity of our product up quite high, and then maybe thermal does the final bit.

This could be the solution in the energy mix that we need to make the purification very energy efficient, and that would actually make it competitive with some of the other high purity graphites around the world. Watch this space. It is early research in electrochemical purification. It's a low TRL technology. But it is our patented technology and of course, we're going to try and leverage that as much as we can.

Yes, very good.

Okay. Batteries.

I am looking forward to those testing results, Tom, now that we have got that purity to where it needs to be for batteries.

Yes, of course. We are actually pushing forward with the testing now, and we are going to actually see what it can do electrically as far as its electrical performance can go.

Yes, perfect. All right. Great stuff. All right, a couple more slides. As Tom referred to, the IEA report was out. There is some really good content in there if you have got the patience to read 260 pages. Look, it remains a very substantial market. As you can see on the left, I think the IEA has now recorded 103 million tonnes per annum as the demand. So it has surpassed that 100 million tonne per annum market. Of course, that is 1 billion tonnes of CO2, as we always refer to it. A lot of that growth was in refining as well as industry. It is a huge amount of emissions, and this is Hazer's opportunity, of course. We are not going to capture the entire market, but even 1% or 2% is a game changer for us.

The DNV also came out with, and I am meeting some of them later today, but they have now recorded the market being a $240 billion market annually. Again, to put that in perspective, it is the size of the copper market and as well as the iron ore market. So it is an enormous market that does not get the recognition, of course, as those markets. But partly, that is our opportunity set, right? Fly under the radar and capture a big market share. So look, the market is doing the right thing. The number that really jumped out was that 20% of growth in the last 12 months on low emissions hydrogen, and that is our space. That has grown over 1 million tonnes per annum. That is 1% of the market today. So there are some really important signposts.

Feels like the tailwinds are shifting, policy is shifting to measure this, and we are seeing that live in real time with a lot of our customer discussions and government discussions. Demand side, strong. Tension in the Middle East, of course, continues to play a role. That energy security drives a lot of the thinking at the government level, but also at the corporation level, that local supply source of energy projects or products rather, refining local diesel, low emissions diesel, fertilizer, urea. All of those things that you do not often think that requires a hydrogen feedstock does to run our day-to-day lives. So they are all great signposts for us. So the size of the prize is large and our growth markets are key, as we have talked about.

There was a slide in the pack that is not here, but it just reiterates. I spent a couple of days at Gastech in Asia talking with some of the biggest companies in the world, some that we are dealing with. Of course, gas was central to the discussion. But there is this common theme that there is, and we are seeing that play through in Australia. There is no energy transition without gas. Australia, as an example, relies on 30% to 40% gas in the energy mix. So the industry needs practical decarbonization solutions, which is another message coming out of this, and that is really the sweet spot of where we fit at the intersection of cost competitiveness, scalability, as Tom referred to, and that strong demand signal that is coming. So the stars seem to be aligning in terms of industry, partnerships, policy, and scale for us. Right.

I think that's a good place to wrap up. That's the last slide that we have. Of course, we have a pretty important 6 months ahead. If you just flip back again, Simon, please. The priorities remain unchanged. We've got momentum across that design package. We're getting the conversations with the right partners that's focusing on conversion into commercial execution on the existing projects, but new projects. Several important catalysts ahead. Whyalla, of course, could be in the next 3 months. We've got further project updates, as Tom referred to, in Canada and EPP and a couple of other projects that we're working on. Graphite continues to gain momentum. That deal flow that we're going to try and translate into real value with offtake, that's advancing. Our partnership with KBR, of course, continues to deepen and expand strategically beyond engineering and into a broader strategic relationship.

Really exciting few months ahead. The building blocks are coming together. I hope you can see that. We're focusing on conversion and converting our momentum into commercial outcomes, and that's what hopefully shareholders have got to look forward to over the next coming period. That probably took a little bit longer than we would've liked, but we have had some questions, and I hope that we've addressed some of them during the call. Fortescue we spoke to, Andrew. A Japanese paid study, I think there was a question there that related to how the flows of revenues come. That one, because it was a KBR-led project. That'll come through them first, and then you'll see that pop up in our receipts probably in the first quarter of next year. Kemira was a good one. We didn't talk about Kemira.

Kemira's a project that we've been working on now for several months. That's getting interesting, Tom, right?

Yes.

I mean, the initial work was quite positive. They are thinking now of how do we integrate this into their business, which is a chemicals business, hydrogen peroxide in Europe, which is a, you know, it's a tricky jurisdiction. But a really exciting one if we can crack the code there.

Yes, absolutely. Just to support that as well, Glenn, I think that the European current legislation around carbon emissions really places Hazer with a CapEx opportunity here to actually fit right in because the total levelized cost, when you start having to look at what you're doing to abate emissions, Europe's moving quickly in this space and Kemira especially is one of those really forward-looking companies that's looking to integrate it into their processes as soon as they can.

I know the relationships are very good and we enjoy working with them.

Thank you.

Through EPP, we spoke about Hycamite. I think Tom answered the question there. Yes, that we're moving forward on large scale things with KBR. They're involved and they're talking about energy storage and that's the big picture. Of course, they're working alongside smaller companies that have got niche products for niche markets and that's their decision there. But from our perspective, and I've spoken with Ben and the rest of the team at EPP, and we are their preferred for the large-scale opportunity. Hopefully we've tidied that one up for you, Dave. Bitumen, we spoke about that 15%. And the Middle East project is very exciting. There's a process there that we're in the middle of, and yes, not the fastest out of the blocks, but big tier 1 partner that could really turn our needle if we're successful with that one.

But we've got the strong support of KBR, which is their backyard. The Middle East is where KBR really, it's their grassroots area and they're very, very connected with the right companies there. There was one other that came through before we jump onto the panel, which I think Dave Sewell asked in terms of battery grade. Tom, did you want to add anything to battery grade?

The question was related, I believe, to the combination of our electrochemical process as well as the purification process to get there. So I did mention a little bit about that, maybe combining the 2 technologies to get that perfect energy mix that reduces the purification energy component as well. But the thing I didn't mention was that from a battery grade perspective, purification is like the hurdle. That's your gatekeeper to get into batteries. From here on, there are a series of steps that you need to do. The graphite needs to be modifiable in its own way to be able to handle the flow in and flow out of the lithium ions, as well as its ability to retain them and its ability to actually do that at pace.

All of these different modifications are the steps that we're taking at the moment, and we need to check every single one of those parameters as we go through, and we'll get performance at the back end. So that testing is underway. End of this year, Q1 next year, we should be seeing some results come back. The testing takes a while because some of the actual activities you've got to do are multiple cycle, you know, 100-plus, 500-plus cycles of the battery. So it does take a while for us to get the results. But, yes. Watch this space. But electrochemical is right in the mix there as far as the energy value of the purification process. So thanks for that question.

No, that's very good. I've just noticed in the Q&A panel there's another one on bitumen, which I think you answered in terms of the proportion up to that sort of 15%. Bitumen's a big market with a relatively large volume market, relatively growing price stack. Again, it's a high volume, potentially high value market for Hazer in the long run.

Yes, definitely. The question specifically is about is it binder or total mix? It can be either. We've tested both, but really what we're focusing on is we've got current testing ongoing, specifically just purely on binder. Binder is the bitumen that comes from the refineries. In many countries, it's called asphalt, which is very confusing when you're trying to define what a road is. As we get more information from that next round of testing, I think we'll actually release a bit more on the specifics of how it affects the binder itself.

Okay.

Thanks, Andrew, for the question, but I think there is actually more to this, and our testing is ongoing.

Yes. David had a similar question, so hopefully that covers that. Then there was another one on are we talking with Hyundai? The answer is we talk with Hyundai frequently, actually, and we know they've just released a hydrogen fuel cell car line. Again, Korea is a target market. We are in partnership with POSCO there, so that's a natural extension. Thanks for that suggestion there, David. There was another question here on M Resources, that if they're selected, have we got binding terms and license agreements at this stage? The short answer is, Andrew, not yet. That is part of the agreement that we have with them. But the process is let's win it first, and we're positioning for that, and the rest we hope is easy. It's a strong collaboration and a fully integrated system from pit to port.

It's a wonderful example of where you've got a fully integrated mine into effectively infrastructure, steel making in the middle, and then an export facility out the other end. I think it's a no-brainer for an Australian solution there, and I think that's what Australia would like to see. I think we're positioning for that opportunity. That will come in the next step. Thank you for that question, Simon. How have we done on questions?

I think they've all been answered by the.....

Okay. If we haven't, then we will certainly come back to folks that have asked questions, and we'll try and respond in the next 24 hours. That's our MO.

All right. Well, I think that's probably a good place to close it off then. If I could just thank everybody. Thanks, Tom. Thanks, Simon. Thank everyone for joining the call today. Hopefully, that gives you an update of where we are strategically with the company. Hopefully, you can see that stars are aligning for us in terms of tech, in terms of go-to-market opportunities. I appreciate that not all of these are going at the pace that we would like. That's the agility of Hazer, but it is sometimes the challenge of working with big organizations. But the positive takeaway is that we are getting market traction with the right players. They're not all going to be perfect, and we won't win all of them. But we are positioning to unlock several of these in the near term.

I spent some time on the road in the last couple of weeks talking with some of our investors, and at least one or two of them came back and said, "Look, you only need one of these to drop before this company gets the recognition it deserves." We're not where we want to be share price-wise, but we're going to focus on the underlying business and deliver the value that shareholders expect of the tech and the market. Thank you.

Thank you.

Good morning, everyone. Thank you for joining us today. On behalf of Hazer Group, I'd like to welcome you to this June quarter investor webinar. Today's session is mix and match [Operator Instructions] Presenting today are Hazer Group CEO and MD, Glenn Corrie; Chief Operations Officer, Tom Coolican; and Chief Commercial Officer, Luc Kox, 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 Coolican, our Chief Operating Officer; and Luc Kox, 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 Hazer 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. They're industries like steel, chemical industries, the refining industry, ammonia, petrochems, 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 2 very valuable markets.

We produce 2 strategic projects, the 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 our 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 2 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 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 1/3 of the cost of blue hydrogen, which is SMR plus carbon capture, and we're comfortably a 1/7 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. 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 Whyalla liquid fuels and other industries where customers don't want a penalty to 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 design -- 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 U.K. 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 Whyalla 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 know you will start to see that through all of the graphite work that we're doing, and the commercialization 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 an $30 million offtake 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 centers, clean ammonia, other sectors ourselves with KBR. We're very encouraged by the level of engagement. They're big 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 a 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. And 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 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 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. Yes, 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. So we'll start with the design package, so a PDP, as Glenn 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 standardized 30,000 tonne per annum hydrogen production plant. So 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 optimization before we have to sit in front of customers, and we're not wasting their time optimizing our process.

We've actually got a 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 customize 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 customize 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 the 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 fluidization, especially on the graphite. It gives them a really good indication and visualization of how the graphite behaves in the system. So we prevent one of the key risks that sits around methane pyrolysis and 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 fluidization, entrainment, and mass transfer testing with those guys. This is actually fundamental, it's also really enhanced our kinetic modeling, which has just moved in leaps and bounds. It improves the rigor 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 somewhat supports the commercial readiness as well.

All right. Moving to Canada. We had a solid quarter of progress with the project advancing on several fronts in Canada. So KBR is now engaged with us in expediting that 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 using -- 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 Hazer, strengthened by KBR, and we're now looking at development activities across a broader range of project scenarios. There's a lot happening behind the scenes. As we get technical and commercial discussions finalized, 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's supports --- it's got very supportive government. So the provincial government in B.C. 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 EnergyPathways. 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 EPPs proposed facility there in the U.K. 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 there.

And the U.K. government has designated that as a nationally significant energy development. So it's definitely getting a lot of notice in the U.K. Sites identified with Associated British Ports. The Port of Barrow in Cumbria, which is near the Lake District, sort of, on the northwest of the U.K., 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 the low-carbon hydrogen, the high-quality graphite for domestic and for international applications. An 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 Luc, if that's okay, Luc, for some updates.

Thank you, Tom. Good morning, everyone. Thank you for joining us this morning, and thank you for your ongoing support in what we do at Hazer. Shifting to Whyalla, mentioned by Glenn already in the intros. In December 2025, we announced that we've teamed up with M Resources, an Australian company, to strengthen their bid for the acquisition of the Whyalla Steelwork and the associated mines in South Australia. M Resources is currently confirmed as one of the 2 final bidders in the government-led sales process of the assets. And Hazer makes the M Resources bid very compelling, in particularly because of the favorable economics, as Glenn explained in the beginning of this webinar. It's expected that the final decision will be announced by the administrators and the government later on in this year.

In recent weeks, there's been significant media attention on this project, which included also statements by Matt Latimore, the founder of M Resources, that they have compiled an A team, as Matt called it, of world-class steelmakers, technical advisors, and partners that have built collectively 30 electric arc furnaces around the world. So as Hazer, we are super excited to be working with M Resources and its partners on this project. To point out the obvious, it would be an absolute game changer for Hazer to secure this project in the consortium. Next slide maybe, Simon.

On the topic of steelmaking, we announced late last year that we extended the collaboration with POSCO from Korea for the integration of the Hazer Process in POSCO's existing steelmaking facilities in Pohang in Korea. POSCO is advancing its own technology for hydrogen-based reduction of iron ore, which is called HyREX. Hydrogen reduction is in their key focus strategically to implement in their operations globally. Since the announcement of the extension of the collaboration, there's been good progress, particularly in the space of testing of Hazer Graphite across several potential applications in Korea, including iron and steel. Obviously, with POSCO being a steelmaker, that's the core interest.

POSCO overall remains on track with its commercialization of the HyREX facility in Korea to have that operational by 2030 recently, and we did also write this out in the quarterly update, the South Korea -- the government of Korea, I should say, the Ministry of Land, Infrastructure, and Transport, has recently approved the amendments to the Pohang National Industrial Complex to enable the site development for POSCO's next step in that journey. So this is moving. It's getting very, very real, and it's a very exciting journey to be part of with POSCO. It also confirms our synergies with iron and steel making, as Glenn said. That's a really hot area for us in the last couple of years, actually.

Maybe next slide, Simon. We have a very strong pipeline. You've heard us talk about this in previous webinars. What we decided to do today is to give you some insight in a number of strategic pursuits that are live at the current moment. Our portfolio, more broadly, well beyond what you see on this slide here, covers about 40, I think we're close to hitting 50 at the moment, actually, active pursuits at various levels of maturity. It covers a number of sectors, focused on liquid fuels, chemicals, and iron and steel making, with the majority of these applications being focused on the use of hydrogen as a feedstock for industrial uses, and securing local production.

We've definitely seen a shift in terms of energy demands shifting towards security of supply of products more globally due to the geopolitical situation across the world that everyone is very aware of. This slide shows a number of those key strategic pursuits. Maybe just to clarify, the LNG super majors, that refers to very large players in the LNG space, global operators that are very familiar with LNG and the potential of molecules and are very interested in Hazer as a technology to decarbonize those molecules where they're required. So not shipping molecules, it's actually using the existing supply chains of LNG, of methane, and producing the products locally where they're required. Again, also tying into that sovereign aspect that I mentioned before.

There is also National oil companies. So that's -- they're not the LNG super majors, but it's National oil companies across the world that are very strong in the oil and gas space historically. Strong interest from those players. Also relevant to note that the demand for the solution that Hazer provides continues to grow. As Tom explained also in the PDP, collectively with KBR decided to use 30,000 tonnes per annum of capacity in hydrogen for the PDP, for the design package. And that turned out to be a really good decision because now we see in the market also the demand is there for 30,000 tonnes and well beyond, which could mean multiples of 30,000 tonnes in trains or a very large single or double train reactor. It's all doable now. We now have all the information required to meaningfully engage with those customers looking for very large applications.

So very excited with where we are. Like to draw particular attention also, again, to the iron and steel producers. Mentioned before, particularly hot segment, no pun intended. Hazer, we have ongoing discussions. Some of them are confidential, so we can't identify them explicitly with very high-profile project proponents, including steel makers both in Australia and overseas. With that, I'll pass it over to Glenn to take up the next slide on the market.

All right, thanks, Luc. No, I think -- and we want to continuously try to provide ways of giving you insight into our pipeline, our portfolio. I wish we could say everything about what we're doing. We're not, unfortunately, able to do that. But there are some really material discussions going on, and I'm confident that over time and in due course, we'll be able to provide more details on that. More broadly on the market, the market continues to evolve. It's big and with a big problem. I've always said that. Obviously, with the geopolitical uncertainty and the market volatility, we've actually seen a real reinforcement in the need for a Hazer solution. Earlier in the year, I was a little bit concerned that the demand for hydrogen might soften. In fact, in reality, we've actually seen quite the opposite. We're getting really serious engagement in really serious sectors.

And as you know from this chart, these sectors already rely on hydrogen. Our world does not survive without hydrogen for ammonia refining, methanol, steel, fertilizer, food. So it's at the center of what we require. And it's become a real priority for customers, and there's increasing focus, as Luc said, on secure, affordable, low-emission energy solutions that are domestic. We're seeing strong signals across target markets. All of those announced projects are progressing. Ammonia fertilizer, in particular, is worth shouting out. This remains a very active discussion, where many economies are looking to strengthen their domestic production of ammonia and fertilizer. We see this at home in Australia. So we're going to absolutely see and KBR has reinforced this macro picture, that there will be further investment in new ammonia capacity. And that's driven by what we've seen playing out in the Middle East.

We've talked a lot about steel. There is a lot of momentum in steel more broadly across the globe. Low-emission steel, there's big projects. Stegra is one that's worth calling out in Europe, that's just had multi-billion dollar of funding thrown into it from the Singapore government. We've got at least five steel discussions going on at the moment, active ones. And you can just see how the synergies of Hazer in many aspects, hydrogen, graphite, hot hydrogen, the iron ore catalyst, it's everything that comes together for us. So we're excited about this space, and I think the industry is demonstrating that. We're seeing renewable diesel, sustainable liquid fuels. Hydrogen is an enabler for these fuels. One of those technologies in particular, 50% of their feedstock is hydrogen. So you do not create sustainable fuels more broadly without a hydrogen feedstock.

The common theme is across all of these markets, customers are not just looking for a clean hydrogen solution, they're looking for a commercially viable pathway that removes that green premium and that's where exactly Hazer is uniquely positioned. Moving on to graphite, I think before we start to open up the call for Q&A, perhaps, Tom, if you wouldn't mind talking to this one and the next one, and then we'll close out with the corporate update.

Sure. Glenn, no worries. Thanks. Yes, graphite is really coming to the fore as the enabler for not only the hydrogen LCOH, but also in its own right, the enabler to reduce the CO2 emissions of what the current incumbent carbon products are. The markets, as you can see there, the total addressable market size that we're looking at here, which is the carbon product within these markets, is absolutely massive. So we don't only look at graphite itself, but we also look at any type of carbon where our material has a similarity to it or could be used in that place. So iron and steel manufacturing, they use carbon all through the process. I mean, they use -- they gasify raw coal as it comes in. They use pure anthracite for carbon steel.

And basically our product really does compare and stand up against those as a low emissions co-product when you're using the hydrogen as well. So in a steel plant, you can really do it all. Steelmaking, asphalt, concrete, major drop-in ready solutions. We don't have to do anything. The product that's produced comes out of the process, and it's ready to actually be used in these applications straight away. Critical applications, defense, battery, graphites, and carbon more generally, require a lot of post-processing, and they've got a much longer qualification process. But they really have so many uses for carbon throughout the industry. So I'll start just steelmaking, obviously. We'll just continue the story and we have signed our first off-take LOI in steelmaking. So that's a strong indicator that the steel industry is a natural fit for the Hazer process. Concrete has taken big steps with qualifications.

So structural and marine concretes now, as a performance additive, Hazer actually outshines any of the other performance additives you can use for structural concrete. The unique part about the Hazer material in the graphite, specifically for concrete, is that the particle size is such that it can fit in the porosity of the concrete, and it prevents water ingress, salt ingress, concrete rot, but also it actually strengthens the concrete as well, and it improves its curing time. And that curing time could actually have a significant impact on project schedules. I also need to mention as well, it conducts heat. So where you have concretes that require working in cold climates or concretes that are actually going to be thermally conductive, this is probably one of the few products in the world that you can add as an additive which improves its heat transfer.

Now this also works in data centers and major HV power cables that are underground. We've actually tested it as a fluidized thermal backfill. So what that does is you bury those big power cables in concrete for security, but the power cables, if they start to get too hot, will actually get derated. By using our additive in the concrete, you can wick that heat away and run those power cables higher, so you actually get more efficiency out of the power. So for a data center, this is a massive energy saving, and I think it's actually one of the future opportunities for Hazer concrete as well. And we're seeing commercial pathways in the concrete and cement space already, and the recent Hallett announcement, I think is part of that. So I'll talk to that a little later.

In asphalt, we've had excellent results where the graphite is improving the strength and lifespan of roads. So our testing has been completed. We have actually tested mid-grade and high-grade asphalt and we actually are providing improving in rutting resistance, improving in cracking, improving in resilience. So if you add this product to your asphalt mixes, it will actually improve the road. So we've got that, we see permanent sequestration of carbon in asphalt is one of the largest and probably one of the primary outlets we see for Hazer Graphite globally. And there's asphalt plants in every city, which brings you back to the same concept that Luc was talking about sovereign access. Asphalt value and use testing is underway at the moment.

This is going to determine our global price points and our CO2 emissions benefits for replacing the incumbent materials, both the solids and the binder as well in asphalt. So very exciting space. Thermal energy storage as graphite blocks, it's a future-facing technology. We see a lot of opportunity there, and it's got a great market size too. Water treatment continues to provide research opportunities, but it's midterm and mid-scale, and we're actually prioritizing other things at the moment. We think water treatment isn't going to be the center of our world in the next sort of graphite development space. We have actually had a question already ahead of the call from Mr. Lewis about Hazer carbon and electric arc furnaces, and it's something that we actually have been doing some research with our collaboration partners on.

So we can use the Hazer Graphite and we have tried it as an additive in the electrodes themselves for the arc furnaces. It's providing great strength results. There's some very interesting results coming out of that. And it looks like one of the future technologies where you could see application of Hazer Graphite. Additional to that, in an arc furnace, you inject a lot of carbon to sort of get the carbon level correct for carbon steel, and we have actually done some testing there with promising results with some of our steelmaking partners as well. So great question and I think it's actually an area where we see a lot of opportunity in arc furnaces and steelmaking more generally.

Finally, just on that as well. We'll update the graphite monetization strategy too but we have done pelletization this quarter. So that's actually pretty key because that improves handling and transport. It minimizes the risk of dust and powders. It improves steelmaking applicability. You can strongly bind the product and actually make it exactly the right size to be injected into the steelmaking process. So that was a really good result.

I think Tom is on mute there. Tom, you've gone on a mute.

Apologies. Hopefully, you heard the last one about Pelletization.

Yes, we got that.

I was just checking the notes. Sorry, I need to use my notes, otherwise we'll get lost. So the graphite monetization strategy, as you can see there, we're looking at the high volume drop-in applications first and trying to get some really big markets to take it away. We look at the growth opportunities in adjacent high-value markets where some treatment is required, and then we look at the high-end markets, including batteries. And look, although it was at the end of the quarter, I think it's worth highlighting, we're pretty excited about the external independent confirmation that Hazer Graphite can be upgraded to 99.99% purity, and that allows us to do some testing in battery applications. So we've got a series of tests now planned for the second half of the year in battery applications for performance. Now that we've got a base feed product, it can be done.

Now we actually want to see how it performs and where it actually has the value. We recognize that it's a small market and the upgrading and qualification hurdles and the timelines are huge, but it's something that we think it's complementary to the large-scale drop-in applications. Our product, the graphite that's produced is quite unique. It's nanotube-rich. It's got a composition which is actually different to anything else, and this could lead to new technology breakthroughs in the battery applications. So we're pretty excited to keep working in that space as well. Thanks, Simon.

One last note on the Hallett partnership. Look, Hallett is the largest supplier of concrete and building materials in South Australia. They've been in the industry for more than 40 years. And this is an example of how we took our product, our graphite, we produced some, we sent it off to Boral MTS for testing. We actually engaged experts to do the qualification and then found it had some positive results. Once we had those results, we engaged with the best off-takers and the highest caliber off-takers, and Hallett is clearly one of those. So they've got extensive technology capabilities. They're very strong in South Australia as well as nationally. They've got a great facility up in Port Augusta, and they work in that region really, really well. They're part of the Australian cement and concrete industry, and the industry has set a net zero carbon cement and concrete by 2050 mandate. So we feel that Hazer is a real enabler for them to actually reduce that CO2 footprint of concrete. Back to you, Glenn.

That's great, Tom, and love what the Hallett team are doing. They're really shaking up and decarbonizing cement and concrete. And we're really proud to be working with such a large industrial group. I think they're one of the largest suppliers of industrial materials and concrete in South Australia. And we're going to hear a lot more about them. Just on graphite, just pull out a few numbers because I was reading the Critical Minerals Outlook overnight, which has just been published by the IEA 2000. If you've got time, go and have a look at it. Graphite just comes to the top again. It's at the forefront of energy and national security. It ranks as one of the most exposed to the supply chain risk. We didn't talk about that in great detail here today, but China, of course, controls almost 90% of the supply chain for graphite. It's hot in defense, aerospace, and ultra-high purity applications.

So I think it's a great milestone for us to be able to demonstrate that Hazer Graphite now gets to 99.99% purity. And it can be absolutely used across multiple aspects of an applications across industry. And it also contributes to the lower cost aspect of our hydrogen, and that's one of the key aspects of why we continue to talk about it and advance this strategy because it continues to drive down the cost of our hydrogen as an offset, and it's a low emissions product as well.

I think we're almost finished, but if we just turn to our outlook for the next 6 months. Our priorities remain unchanged. This is the same slide that we've been using now for several months. We've got momentum, as Tom said, behind that commercial design package. Our focus is clearly on commercial execution and licensing, and we're now able to do that with a very credible partner and package and design behind us. So important catalyst to look out for amongst all of that stuff that we talked about this morning. Whyalla progress, there's a decision there imminent. Further updates on Canada, as Tom alluded to. New material opportunities now that we've got these substantive discussions going with some of these large players. We continue to advance that graphite qualification and convert that into tangible value as we have been with Hallett, and I think we'll take it to the next phase there with them.

But also Green Steel WA, that $30 million off-take agreement there. There's going to be more of those because I think we have this ongoing engagement with graphite that is just getting very exciting. And our partnership with KBR is deepening and it's expanding beyond engineering. It's a broad strategic relationship now from the working level all the way to the top, and we're really excited about what it's going to yield for the company. We'll finish there. There's a few corporate access points for people. I'm presenting at the Tactic Conference in Port Augusta next week. That's going to be a really well-attended South Australian event. There's the October Hydrogen Summit in Adelaide. That's another South Australian event, one of the biggest in Australia. So we're presenting there. I'll probably hold an investor coffee or something for folks in Adelaide. If you're around, just drop us a note and we'll get you involved in that. I'm attending Gastech in October in Asia. That's one of the biggest gatherings worldwide for gas players.

So obviously, there's strong synergies with gas and Hazer, so there's another opportunity there to engage with new and existing customers. And I'll probably be on the road in Sydney, Melbourne, and Brisbane at some stage between now and October, so plenty of opportunity to engage. The building blocks for Hazer really are coming into place. We're focused on conversion. We're going to drive that momentum forward on those commercial outcomes, projects, licensing revenues. And ultimately that should lead, we hope, to greater shareholder value for our investors.

So thank you for today. I think it's a good time to open up the call for Q&A if we can. Simon, please.

Yep. Absolutely. Look, there was quite a few that came through yesterday and the day before. We've hopefully already answered those. So we'll just go to the ones that have come through. Probably the first one, did Orica consider Hazer for their process? That's from Oliver.

We'll be honest, Oliver, yes. I think we've had discussions with Orica and we will continue to have it with Orica. We see, again, strong synergies of what they're doing. They've gone down that green hydrogen pathway for now with strong government funding support. They're one of many in Australia that see the strengths of what Hazer can do. And again, I think our pipeline in this country has expanded enormously relative to the rest of the world, and it's certainly against what I'd expected. But again, ammonia-based techs, explosives, fertilizer, sustainable aviation fuel, liquid fuels, there's many opportunities, so Orica's one of those. We'll continue talking with Orica and others, but there's a wonderful opportunity for us to have a bigger presence in Australia, as you have seen, as we start. Whyalla is a great example.

Whatever direction that heads for Hazer, it is a wonderful validation of Hazer's involvement in large scale commercial projects where a low hydrogen cost can be a game changer for industries. And I'm convinced that more and more of these customers are going to switch across to what Hazer can offer.

All right. The next one was from Steven, is the Hazer hydrogen demonstrations plant still operational? If not, why not? Could you produce a revenue -- could it produce a revenue?

Yes, good question. I think it's a valid question, Steven. It's an expensive piece of kit to run. So we're in what we've -- and I think we've been open about this, we're in what we call warm stack. It's effectively in a situation where we don't run it all the time because it's an expensive piece of equipment to service on a monthly basis. And I've seen -- but what we have got, of course, is around that. We've got our lab in Sydney. We've got a test rig that is down at site as well. There are lower cost ways of achieving almost similar results. Our CDP was very successful. We ran it for over 12 months. We had continuous operations there for almost 1,500 hours and we achieved everything out of that and more that supported bringing KBR on board for the scale-up and the commercialization.

And the next opportunity for us to operate that will, as you say, be a revenue operating opportunity for the company. And that's our commercial demonstration plant. As Tom said, we use it a lot for showcasing. There's many aspects of that, that we feed into all of the modeling and the engineering and the R&D work that we constantly are running. If you had the opportunity to visit our CDP, we've got a wonderful test rig alongside that, that we use almost every day, to look at some of the more detailed aspects of the technology.

All right. Next one from Atocha. The LCOH figures assume the U.S. Henry Hub gas around $2. As the Aus and Asian markets seem to be LNG backed, do they -- and these have jumped since the closure of the Hormuz, does the Santos offtake insulate the Whyalla case from a global volatility point of view?

Yes, it's great. I think, Atocha, I get your question. And you saw our cost chart in the U.S. at Henry Hub, $2 to $3. Hazer drives out or produces hydrogen around $1 a kilogram, okay? That's an extremely low cost for hydrogen at those gas prices. If you jump then to LNG net back prices, closer to what we're seeing in Asia as well as Australia. Australia is probably slightly lower than Asia Pacific, because of the LNG, but the domestic gas supply here. But if you assume prices sort of in the order of -- gas prices in the order of $10 to $12 per MMBTU, then Hazer is closer to $2 a kilogram. That is extremely low cost still relative to Orica's cost and relative to green hydrogen of $7. And that's simply driven by the fact that splitting a gas molecule is 7x lower in energy than splitting a water molecule. That's chemistry.

You'll never change the outcome, but it's not linear between gas prices and Hazer's cost, and that will fluctuate, and that $1 to $2 that we see has still got downward pressure potential because of scale-up benefits, because of graphite pricing upside, and other opportunities like carbon offset. So we measure -- we effectively calculate costs conservatively, but we see upside beyond the $2, at least in Australia. And as gas prices move up and down, I think we still maintain very competitive hydrogen costs.

All right. Look, I'm going to try and group a couple of these. I know Tom and Kapil have sort of asked about, what are the economics of each deal? And when will the company be in a position to forecast breakeven based on the pipeline? I know that's not that straightforward, but maybe a bit of color on that.

Yes. We're not spending much. And you can see from our cash burn, it's mostly people. And we've got the strong support of KBR behind us in terms of the scale-up and the next phase of commercialization. So we spent $140. We're now over the main hump in terms of going forward. Every deal here depends, but we've been public on the numbers in the past. But every license here of around $30,000 to $50,000 could be between $50 million and $70 million, even $100 million of revenue for Hazer. That's the scale of each of these projects.

That's what we're driving towards to give visibility on what these licenses look like and those phases as we move into FID for these projects where license agreements are signed, there'll be revenues through engineering services and FEEDs, contracts, and other things to get to FID, where we will ultimately have a license agreement that we're able to bring out and share with the market.

In terms of cash neutrality, as we -- it only takes 3 or 4 of these projects through even the engineering service side for us to be almost covering our costs. So it's a low cash burn business, we call it CapEx light, as we move into that license phase. So as we continue to multiply the revenues from these projects, Canada, which is coming into the next phase, EPP, the next phase, both of those have been revenue-generating projects. And as we bring more of these projects, like POSCO and our win in Whyalla will certainly get us much closer to cash neutrality.

I probably think we have time for one more, the others we'll answer via email afterwards. Wayne has asked, how will Hazer earn the graphite revenues? Is it a license fee of what the producing company makes? Or does Hazer own the graphite produced?

Yep. Tom or Luc would you mind taking that one?

Go ahead, Luc.

You want me to go first? Sure. In principle, the Hazer business model is focused on licensing. So there will be a percentage or however the commercials are finally negotiated with the owner of the asset. We're open to considering all sorts of models also in collaboration with Mitsui, our partner for the graphite marketing specifically. Tom, is there anything you wanted to add there?

Yes. I think I agree with everything that Luc said. I think that is definitely the engagement we have. We also have the ability to look at other alternatives for discharging that client's graphite as well. If we do need to set up our own ability to either market it on their behalf or actually move it, then we have all of those options available to us. So I think that the risk around not being able to discharge the graphite has materially reduced. We have definitely large outlets for it these days.

I mean, we're seeing it as upside as well, guys, aren't we? I mean when we -- and not every customer wants graphite. I mean, if you're talking -- we talked about super majors and big LNG players that don't necessarily want or need graphite. We'll work with them as we have been and some of them are asking detailed questions around offtake and pathways to market. And it's worth mentioning that we have a strong strategic collaboration with Mitsui, who are one of the largest traders of carbon products. So we're working all avenues here. If a customer doesn't necessarily want the graphite, it might actually be quite valuable for Hazer to take it. I think we've already come out with price discovery around steel, where at $400 a tonne you can see that even small amounts of graphite can be a $30 million offtake contract for Hazer.

And then if you start layering on Hallett and other applications, then there's a scenario here where we'd love to have some of the carbon and the graphite where we are confident in the offtake. And that's why we've spent so much time working through the graphite market and understanding it, not with just external parties, but off our own back. So price discovery, market applications, and I think you're starting to see that we are tapping into all applications, not just drop-in, but longer-term battery applications, which are getting pretty hot.

Simon, I think there's some repetition in the questions, so it might actually be a good time to wrap up.

There's probably one more though, Glenn, sorry, that I've found that I thought was probably worth answering on the call if you're happy to.

Okay.

All right. The CDP is a different design than the larger KBR design. Does this mean that the future customers will require seeing a larger scale plant working successfully before committing?

Tom, do you want to address that one?

Yes. Our scale-up design basically works through the CDP and then into our process design package. So when we talk about scale-up, we talk about the fact that the CDP demonstrate a continuous process of methane pyrolysis using the Hazer process. That basically unlocked our ability to go bigger. Now what we're looking at is the process design package that we've built basically takes the core chemistry of the Hazer process and then deploys it in different hardware. So there's a lot of different ways to actually get that hardware to do the job. But that process design package has fixed us on a specific way of doing it.

So when we present to the clients about scale-up strategy, it really is we've got the chemistry locked, we've modeled the size and shape of what happens. We've then rechecked that against the CDP to make sure the scale-up is linear and it does work, and then we demonstrate the new processes. Yes, I think that it's a good area to understand and it's a common question we get, but it's part of the scale-up strategy, I think. So the CDP is fundamental to underpinning the chemistry for the scale-up.

Yes. For sure. Yes. All right. Simon, that's probably a great time to draw it to a close. Just in terms of closing remarks, look, we're transitioning from a tech developer into a commercial execution model. And I know you can see that through all of the commercial projects, the design package, the pipeline that's now expanding. It's a very important value creation phase for us as we move into this phase. From my perspective, it is the most exciting part of what we've been doing, developing tech and now actually selling it to a customer. Our counterparties are very large. These are very large industries. They are very large problems that we're trying to solve.

And that's why we have a diversified and large portfolio of projects and opportunities and deal flow because all of these negotiations all run at different pace. And we don't necessarily control that all the time. But that said, any of these projects have the potential to drop at any time and rerate the company in terms of the value creation that they're going to bring to us and the validation that brings for the company. But the first and the second, they're always the hardest, but we're getting close to now execution milestones on many of these, and we're really excited about the next phase. Thank you for your support to the company and joining today, and we look forward to giving you further good news in the not-too-distant future. Thank you very much indeed.

On behalf of Hazer Group, I'd like to welcome you to this March quarter investor webinar. [Operator Instructions] Presenting today is Hazer Group's MD and CEO, Glenn Corrie; and Tom Coolican, who will take you through the March quarterly report and provide an update on recent operational and commercial progress.

I'll now hand over to Glenn and Tom to run through the presentation.

Thank you, Simon, and very good morning to everybody, and welcome to our Q3 webinar. Thanks for joining us today. As Simon said, Tom Coolican is on the call, our Chief Operating Officer. He's joining us from India, actually, where he's engaging with the KBR scale-up team, but also taking the opportunity to liaise with some potential clients and customers there.

Together, we're going to present our quarterly results. We're going to give an update on our key developments across our business. I think it's fair to say we've had another really important quarter for the company, one where we've continued to execute on our strategy and build on that very important commercial momentum that we established in 2025.

Perhaps go down to Slide 3, please. Thank you. I think most of you are familiar with our vision. Those relatively new to our story, we're transforming gas, natural gas. We're transforming that into clean energy in the form of hydrogen and a critical mineral in the form of graphite. We do that with zero emissions in our process. It's one technology or process that serves two very discrete but important markets, the hydrogen market and the critical mineral, the graphite market.

Our competitive advantages are strengthening. We're low cost. We're pragmatic. The technology or the process is scalable. I would add to that, it's secure, it's local, and it integrates wonderfully into existing supply chains and facilities, and it's available to decarbonize industry, very hard-to-abate industries today.

If we just go down to the next slide, this is a new slide. I think it's a very nice snapshot of where our business is today. Hydrogen, as many of you know, is a major feedstock to critical industries like refining, liquid fuels, ammonia, fertilizer production. You don't create or produce fertilizer without urea. You don't produce urea without ammonia, no ammonia without hydrogen.

So all of these sectors require hydrogen, and they're all experiencing fairly significant supply chain disruption at the moment. Against this backdrop, of course, Hazer is extremely well positioned to deliver a local, secure, reliable source of clean energy or clean hydrogen and critical minerals.

On the left-hand side, all of the elements of our company or our technology are in place. The technology is substantially derisked. We've invested over 15 years in developing the process. Over $130 million has been invested. It's low cost. It's scalable with various components that are proprietary of our technology and our process to meet that demand today.

Hazer Graphite, as you've seen in the recent months, is increasingly valuable co-product and our partnerships and relationships continue to build and endorse what we're developing as a company. So really uniquely positioned corporately on the right-hand side of that slide, you'll see we'll talk -- we're well funded. I'll talk to that very shortly. And we've got strong support from the analyst community and Philip Pepe from Shaws and Declan Bonnick from Euroz and Hartley. It's my view that they're 2 of the best analysts on the Street.

In terms of our agenda this morning, I'll kick off with the highlights. We'll step through then the macro, the hydrogen outlook, the graphite market outlook. Tom will discuss our commercial scale up and our go-to-market strategy. We'll then do a bit of a deep dive on our graphite monetization strategy. There's been some material developments in the last quarter, including an offtake, a big one, which is a material milestone for us. So we'll cover that in detail. We'll round out with a corporate update, some observations from CERAWeek, which I attended in March and then cap off with the near-term catalysts and then dive into Q&A.

In terms of our highlights for the quarter, I think it's fair to say we posted a strong quarter of performance. We continue to build on those very important foundations of commercialization that we've talked about. We kicked off that global marketing campaign. We're seeing encouraging early traction from the market. Importantly, Tom will talk to shortly that post- end quarter completion of the PDP, the process design package, that directly supports these marketing efforts, but gives clients greater confidence in the scalability, but also the underlying economics of a Hazer plant.

Canada is advancing. Potential there for expansion. KBR has now been brought in to provide further certainty to the engineering and also the project delivery, the 2 things that they do best with plants and engineering and clients. It was a big quarter for graphite monetization, formal in key markets and the signing of our first commercial large-scale LOI in steel that provides visibility on pricing and visibility on value. And then finally, pipeline conversion. It's early days. We're live on several active opportunities at the moment. Projects are progressing. We can't disclose full details yet.

But what I am encouraged by is the level of engagement across Australia, internationally in several industries with potentially significant customers. In numbers at the bottom, we ended the quarter with almost $15.5 million of liquidity. That's an extended runway through significant commercial licensing milestones that we see ahead. That was strengthened by inflows from ARENA due to some commercial and economic milestones being met and that lower cash burn year on -- quarter-on-quarter, which was down 16% on the previous quarter.

Diving then into the markets on Slide 9. I won't go through the numbers because I know many of you are familiar with this, but it's -- hydrogen market is a big market. It's a big problem. It's 1 billion tonnes of CO2 problem. That's the prize, of course, that's worth reiterating for Hazer. What's changed since we last spoke is that the conflict in the Middle East is impacting the global supply of refined products, diesel, refined -- other refined products, ammonia, fertilizer, other liquid fuels.

So in this context, Hazer is increasingly being recognized as a provider of local, secure, reliable sources of hydrogen that directly supports the resilience of these critical supply chains. Beyond this, we're seeing growing interest in hydrogen demand for data centers, in particular, in the U.S. and North America, but also growing interest in sustainable aviation fuels where hydrogen is a major component of the feedstock stack.

Geographically, we're seeing an uptick in interest from our Asian counterparties, Japan, South Korea, India, all looking to continue to shore up energy supplies from stable jurisdictions. Of course, these are big markets for steel. And then in steelmaking, the interest in decarbonization remains very strong. Significant capital continues to go flowing into these initiatives. You may have seen Stegra, one of the big European green steel developers has recently secured around $1.5 billion of funding to complete their projects.

So some really important signposts coming out of the hydrogen market. It's a similar dynamic in graphite. If we move to the next slide. Graphite, of course, is a critical mineral for the energy transition. I just want to call out EVs or electric vehicle demand. It is surging at the moment as a result of, again, the energy crisis. That's going to absolutely place increasing pressure on supply chains for critical minerals like graphite, a major component of battery technology.

In Australia, at least year-on-year, February versus February of last year, I believe the demand for EVs has doubled. So again, some really important signposts coming out of at least the critical mineral markets. This, of course, at the highest level is exacerbated by China's domination of production and processing of graphite, and that is going to continue to create supply chain vulnerabilities.

That concentration risk is continuing to be recognized by governments as well as industry who are actively looking to diversify away from that supply chain and secure alternative sources of supply. It's worth mentioning that one Hazer facility at our design package, our base design package of 30,000 tonnes per annum produces almost 100,000 tonnes per annum of graphite. Now if you look at the battery market, that's 5% of the total demand for graphite that goes into batteries today.

So we can be a major solution for the energy transition in terms of that local source of supply of a critical mineral.

Tom, I think this is a good place to hand over to you in terms of the scale-up strategy as well as our design package, please.

Okay. Thanks, Glenn, and good morning, everyone. Yes. Welcome to our briefing. I'm here in India with the KBR technology team in one of their technology centers. Arguably, this team is the best fluidized fluid solids team in the world. And really, we're working through some of the technology improvements that we're making and growing the technology, especially for the scales that we're now talking about. But overall, I wanted to quickly give you a brief on where we are with KBR, building that alliance right through the licensing and the KBR operations. So we're on track for commercialization.

The team is working incredibly well together, and the first studies are in, and we're working on those studies right now. So it's good to see the first runs on the board with KBR. So proposals are being sent out. Multiple customers are requesting proposals at the moment, and we have more inbounds coming in. So as Glenn said, it's covering quite a number of industries. So we're getting a lot of interest from the liquid fuels and sustainable aviation fuels industries. We're getting a lot of interest from steelmakers and obviously, the integration of the hydrogen for reduction as well as the graphite into the carbon for carbon steel. It's a real integrated product there and also from chemicals industries, too.

So we spent the last few days having a lot of deep dive into chemicals industry. So it's been an excellent progress for this period with KBR. The main areas that I think maybe jump to the next slide, Simon, if you could, and we'll talk a bit more about the process design package. So we did announce that the PDP is complete for clients to now come and have a look at. And actually, we can now use this as the basis for developing a client or a site-specific design package.

So just to sort of give you an idea about what this looks like from the inside out, the plant layout, the plant design has to be done. And so that's what we were able to sort of assess at this. We decided on a 30,000 tonne design being a midpoint between the ammonia production, steam methane reformers, which we're really targeting to replace with their 11 tonnes per tonne of CO2. They go 30,000 to 50,000 tonnes per annum. So it's quite a nice size for a design package for us to put out in the market.

So all the flow sheets of how the package and how the unit is put together, they're all part of this design package. The plant layout, the buildings, the silo, the loading system, the importing system, that's all part of this package. We look at the cost estimates and all of the major pieces of equipment have the general design drawings to the point where we can go out and actually get some costing for those components. So we do cost estimates so we can build up a real good CapEx view.

By having all the process done, we can actually then walk through the operation of the facility and get a good view on what its ongoing operational costs will be, its turnaround periods and its maintenance windows. And then finally, we do an emissions assessment of the facility as well. So at this size, and we make assumptions about different places in the world, what their gas is, what their energy is, what their feedstocks would be, and we have an emissions profile for this unit as well.

So this then becomes what we would use to have done a precheck before we go to a client facility in any country in the world, take their inputs and then process them through this design package so that we can create a specific bespoke process design package for every company that requires it. This is something that KBR did very well. And in the slide here, you can see and in their announcement, the President of Sustainable Solutions for KBR, Jay Ibrahim, commented on the value of having a PDP for this technology. So it really does progress the technology forward in terms of its deployment and commercialization.

We've also had some pretty good progress. And again, linked to KBR, which is fantastic, has come into the Canada project. So we've engaged KBR to help us really work with Fortis on growing the maturity of the engineering works, doing a really deep dive into the constructability, the cost estimates and also the scalability of this project. So it's fantastic to see that they've actually jumped in. We see that there's going to be significant cost optimization working with KBR, and they have a modular approach to development as well. So this will really fast track that sort of early stages going through engineering design so that this project can get to FID as soon as possible.

The view that we're seeing at the moment is it will actually redefine value for the project. And we should have a more material update, as we said in the announcement coming up soon. So we just wanted to get that up now and give you an update. The project is probably in better shape than it's ever been. Over to Glenn.

Yes. Thanks, Tom. I will just add on Canada and North America more broadly, you probably witnessed that gas prices at the moment are around $2 to $2.30. That is a very attractive feedstock cost for us. When we do our technoeconomics, we sort of make assumptions around $3 to $4, and that yields out $1 a kilogram for hydrogen. So that continues to -- the lower gas prices continue to strengthen and if not put downward pressure on the cost of hydrogen supply for Hazer in particularly North America, probably below that $1 a kilogram, which is great.

Fortis also very supportive of the project as a partner -- they're committed to working through that next phase with us. And I will just mention here in terms of value that Tom referred to that 30,000 tonne per annum facility economically for Hazer, once that's operational for a client, that's in the order of $50 million to $60 million of license revenue for Hazer. So important projects and extremely valuable. So a very exciting milestone for us there.

In terms of the pipeline, this is a familiar slide, I know for many of you in terms of our go-to-market strategy, which continues to gain real momentum. That 30,000 tonne per annum design package was partly selected because we've got growing demand for larger scale opportunities, the bubbles or the blobs on this chart continue to get larger. We're seeing numbers in the order of 100,000 to 200,000 tonnes per annum for some potential facilities in Asia. So we can -- of course, at 30,000, we're able to multiply that into these large scales.

We've got 7 live projects that we've announced. That's the diamonds. We're advancing other multiple opportunities globally at the moment. We don't -- we're not able to provide all the details. If you look at the chart on the left, you'll see some insights into what that opportunity pipeline looks like. In Australia, of course, Whyalla is live for us and we're supporting M Resources' bid for that in South Australia. That's a priority opportunity. Of course, publicly, the process owners and the government have come out and said that selection is now down to a very short list, and that decision is slated for sometime later this year.

We're also seeing in Australia emerging iron and steel opportunities initiatives in Western Australia. That continues to underscore the role that Hazer can play in low emissions iron and steel. It's becoming a real sweet spot for us, not just internationally, but back here at home in Australia. I would also add to the list in Australia, ammonia, which is becoming increasingly important as a feedstock for fertilizer, which is, I think, up 60% in terms of pricing more recently. So Australia is becoming a hotspot, if you like. I think policy is also becoming a bit of a tailwind as well as we sort of start to witness some of the challenges of supply chains more broadly.

Casting that internationally, we're progressing discussions on a series of industries with a series of players. Again, just pointing out steel manufacturers, particularly in India and Japan that recognize, as Tom said, the integration potential, but also the cost benefit and the synergies that Hazer technology brings to steel as a plug-in solution. So they're very exciting. Ammonia globally is growing fertilizer price volatility, supply disruptions, all play into the hands of Hazer.

I will just mention that KBR, again, is a global leader in ammonia, having a market share of over 50%. Their technology is used in over 260 ammonia facilities worldwide. That's a dominant position, and that's a strong channel for Hazer into this very important and large hydrogen market. Elsewhere, liquid fuels, sustainable aviation fuel, hydrogen is a critical input, cost and security of supply, graphite opportunities are progressing across multiple applications, including construction materials, thermal energy storage as well as low emissions steel.

So pipeline is strong, continues to uptick in terms of demand. The energy crisis, if you like, for want of a better phrase, is sort of playing partly into our hands in this respect. So we're extremely excited and well positioned to capitalize on this shift. Tom, maybe just a few words then on graphite monetization, which I think was a big quarter for us and then the LOI, please.

Yes. No problem, Glenn. Thank you. All right. So our graphite monetization strategy is built on the concept that we primarily in the beginning, want to be able to enable our customers to move the graphite and actually move it at good value at good price points. So our strategy is deliberately phased where what we do is from the production from the CDP, we've taken that graphite and we, first of all, assessed it for the highest volume applications of where it could be used in the world.

So we broadened the net past traditional graphite technology and looked at all carbon products and then also at all equivalent products from the same type of morphology and the same type of performance. And what we discovered in those large volume applications was it certainly did have a home, and it did have a home at multi-hundred thousand tonne per annum production if required over the world.

So the high-volume drop-in ready, so straight out of the reactor unrefined product, we did find some homes for that in the quarter, and we announced that, which is pretty exciting. From that, what we do is go through a process of initial functionalization or very simple modification to the graphite to meet certain size specifications, and then we applied that to the more refined industries where that graphite would actually then displace a more sort of higher value, but maybe not quite as large a scale opportunity.

And then in the future, we go to very detailed refined functionalization. As you can imagine, graphite that comes out of the ground doesn't go straight into a battery. It goes through an enormous process to get there. So we do this long-term process where we're working on improving those niche but very, very high-value applications. And so that's the third stage of our graphite monetization and application development strategy.

In the high-volume applications where we've been sort of working the most in the early days really to lock away price and also volume, we've actually had some very good results come back from Boral Labs in relation to graphite as a performance additive where it is demonstrating very good performance in bitumen and asphalt. It's improved the hardness, it's improved the durability of the product to the point where we're actually seeing it certified for Transport New South Wales as a performance additive for asphalt.

Similarly, in concrete, if you add 2.5% to 5% of graphite as a performance additive in your concrete, you will see that you will have better curing times, better performance, higher resilience and also it's meeting the standards for structural concrete in bridges, which is also a very significant worldwide use and a very, very large volume use of the product.

So some good results early. You can see Boral Labs down there. We keep working with Mitsui, Green Steel of WA, I'll talk about soon, POSCO, who are steelmaking and see the synergies there when we go into steel and also Chubu Electric. So in the highest volume applications, that's where we're seeing some very good results. As we go into growth, we talk more about how the integration with steel and the recarbonization of steel, you can use the carbon product in there. And again, that's a very large carbon sink for the product.

So especially for an integrated steelmaker that's using the hydrogen for reduction, they've then got an additional co-product that they can put straight into their steel manufacturing. So more work to be done there. We're really working in that space and actually working with all of those steel suppliers to actually test our product and get good performance. As we go into growth, activated carbon is a really good example of a product where you do have some functionalization to do, and we're working with 2 of the world's largest water treatment companies there in Kemira and Veolia testing and having a look at our activated carbon equivalent product in our graphite.

Thermal energy storage also is really worth talking about. And thermal energy storage is a growing sort of new area where compressed graphite blocks are used to store heat during periods when you don't have the heat available or the energy available, for example, from solar. So thermal energy storage is a growing new opportunity, but it doesn't require the same level of like really detailed processing that you would require for electrodes and things like that. So it looks like a great opportunity for us, and it sits within our growth window.

And then finally, in our battery window, defense, critical minerals applications, isostatic graphite. These things are extremely high purity, high grade with a very, very specific morphology as well. So lots of work to do in that space to functionalize and then to actually modify our graphite and check its performance for the high-value opportunities. One more to mention, I think, and Glenn has already said it in EVs, is in battery applications, we do see that there is still a position for our graphite. Batteries have many components to them, including the electrodes, but also in the fillers and conductive graphite is actually a highly valuable product in that space.

All right. If we can move on to the next slide. And just as a price marker. So it's very good for us to have done this so early, and it's actually a major, very important early price discovery for us with the LOI with Green Steel of WA. We announced recently, Green Steel of WA are a local Collie based steel manufacturer. They are developing a project there, which will actually be an EAF electric arc furnace recycling of scrap steel, and they're linked to the West Australian economy in so many different ways, including the decommissioning of old rigs, which is one of the feedstocks for them for the EAF.

85,000 tonnes of graphite is the volume that they're looking at over the 10-year period, which is really quite significant. And it just goes to indicate that even a new project of this size, which is doing steel recycling and not the major steel developments such as M Resources still see the value in actually bringing in a cleaner carbon product than importing anthracite coal from wherever it happens to come from in the world. So it does give us another really good indicator of not only the value proposition of the graphite, but also its technical application in steelmaking as well.

No, that's excellent. I love those 2 slides, Tom. And just to put that into value, I'm not sure the market necessarily appreciated this, but at $400 a tonne, which is sort of the agreed -- well, it's the market price for anthracite today, which is the price under the contract, 85,000 tonnes over 10 years. That's a $30-odd million contract value. So that gives you some value marker for potentially what Hazer graphite is valued at.

I was talking yesterday with one of the graphite miners about pricing of recarburizer, and this is definitely at the bottom end of the range. They're seeing pricing up to $700, $800 a tonne for graphite in that particular application.

So I think there's more upside to come there. If we just turn then to our corporate update, which I think is the last couple of slides before we open the call up. I attended CERAWeek at the back end of March. It's always an important week. It's a pulse check on the industry. It's often referred to as the Super Bowl of energy. Definitely a different tone this year with everything that's going on in the Middle East. But it's really an important opportunity for us to engage in dialogue with global energy leaders, in particular, for Hazer, the opportunity to reconnect with our project partners, meet and engage with prospective new clients and partners and also spend time with KBR, that's their headquarters in Houston.

So a really productive couple of days. Unsurprisingly, as you can see, the conflict in the Middle East was dominating a lot of the discussion, but I did feel like a lot of the energy firms wanted to look through all that and just see beyond what the current situation is. But energy security, critical minerals were absolutely the top of the agenda. Gas, natural gas is being reframed as an essential component of the future of the energy system, and that's critically important for Hazer, of course, when it's paired with low emissions technologies is like ours, we're decarbonizing gas.

So I came out of CERAWeek and looking at the opportunity set and thinking, well, methane pyrolysis is evolving. It's absolutely no longer a technology concept. It's becoming strategically relevant because it plugs into existing supply chains. Major energy players are now actively exploring and entering this space. So I think we're ahead of the game and leading the pack on that front. That's reflective of a lot of the dialogue we're having.

Decarbonization hasn't gone away. The focus has sharpened to low-cost pragmatic practical solutions that plug in to existing value chains and infrastructure. And that's where we fit really nicely into that overall heavy industry decarbonization strategy. Critical minerals, of course, is a hot topic for all the reasons that we outlined earlier. Near-term market opportunities in data centers, of course, they're getting a lot of attention, liquid fuels, SAF, I've mentioned, seem to be sort of new markets that are developing and of course, behind the grid solutions for data centers is going to be absolutely critical to solve.

So again, positions us quite nicely. In terms of KBR, very aligned, came through -- hopefully, that came through in last week's announcement around the PDP. We're having in-depth strategic discussions on a range of topics, including projects, opportunities, priorities, graphite, of course. And I've generally come away from CERAWeek. We're doing the right things. We're targeting the right markets. We're solving the right problems with the right partners. And I think that puts us in a very important place in terms of energy integration.

Moving then to our final slide, which is what we've all got to look forward to over the next 12 months. Look, it is really an exciting phase for Hazer. It's defined by execution and value creation, which is a lot of what Tom spoke to in some of that really underlying engineering and technical work that's being done at the moment. The commercial momentum is building. Our focus is really clear. It's converting that pipeline that we see continue to grow into tangible value, advancing those projects, progressing Canada, other opportunities to provide the market with that visibility on and project value, as I've explained in terms of that 30,000 tonnes per annum.

It's a $50 million, $60 million value proposition for Hazer for every plant. Whyalla, of course, is a standout opportunity. It's somewhat of a wildcard, but it's down to a short list, and that could drop for us, and that's got the potential to transform the company. Graphite monetization, I hope you can see that the strategy is evolving. We're never finished, of course, with graphite. It's an evolving market. It's coming together, qualification, LOIs. There's more discussions. So look out for near-term updates on that front.

And then, of course, beyond all this, we've got strategic upside through new partnerships, potential investors and expansion into, of course, new markets. Looking ahead, look, it's my view that Hazer has got that potential to be that multibillion-dollar platform. That's what we're driving for. We see the underlying value. It's grounded in scale. It's grounded in the opportunity set that we're trying to address. And importantly, it's not about a single project. It's about building a scalable licensing platform where each project adds incremental value and revenue to the company.

So we're all pumped here, of course. The company is strongly positioned. We've got a derisked tech. We've got tailwinds of the government and the market that I think are strengthening. We've got that deep pipeline and the deal flow is coming, that high-quality partnership and relationships worldwide and that all important robust funding position. So Simon, I think that's a really good place to pause and open up the call and address some of the Q&A.

Yes. Thanks, Glenn. Thanks, Tom, for the update. [Operator Instructions] We did have a couple come through on e-mail yesterday, so I'll start with those. One from Haley. Do you expect any further need to raise capital? And if so, are you at a point where any further capital requirements can be met through debt funding instead of equity funding?

Yes. Good question. I think, hopefully, Haley, you saw on the early slides that we're in a very robust position at the moment, $15.5 million of what I'd call liquidity. What I didn't mention there is -- well, I think I did mention around the cash burn, it's down under $2 million in a quarter. So I think in terms of funding runway, that's pretty close to 7 quarters of funding, which is getting close to 18 months to 2 years. So that sort of gives you an indication of sort of the runway. That doesn't include more grant funds that we expect to come through that are already effectively awarded to us. So there's various milestones.

That doesn't include any of the KBR contribution to the work program, which is up to $5 million that's being worked on at the moment. So there's more upside there. That doesn't include any of the revenue that we forecast from Canada, which is starting to trickle through from the U.K., which is starting to trickle through and from future projects. So we see expansion of the revenue model there, and it doesn't include any new grants.

So if you look at all that, I think we're robustly funded today on the base business but there's certainly upside through grants through another R&D rebate, which typically comes through in the third quarter or the fourth quarter of the calendar year.

And last year, that was in the order of $3 million or $4 million. So a lot of inflows ahead. We're keeping a tight lid on the cost, of course, given the volatility in the market, but we brought those costs down [ dramatically ]. So I think we're in a pretty robust position at the moment.

Next, there's a couple here from Dave Lewis came through last night. Maybe the first one for you, Tom. How is the reactor scale-up progressing with PSRI?

Great. I wish Tim Forbes, our CTO, was on the call to really talk about PSRI because he's actually on the Advisory Board of PSRI. This company is Particle Solids Research Institute. They're based in Chicago, and the world's best energy companies are all members of this institute. Yes, Tim is one of the preeminent fluid solids people in the world, and he really is quite a fantastic person to have in our team.

So PSRI are working on all of our scale-up strategies where we're not building a hot furnace. So what they do is all of the other work that's not the super hot 900 degrees, 8 bar pressurized pyrolysis unit. So you have to be able to make sure it's going to flow that the solids are going to fluidize, that you're going to be able to separate cyclones are going to work, all these other components. So we engaged PSRI to give us all that fundamental detail. We sent them over, I think they must have 300 kilos, maybe more of our graphite at the moment, and they have that in there.

They've got Perspex versions of all of these fluidized bed reactors. So they drop it in, they do all of the sampling on it. They make sure they know exactly what that component is. And then they fluidize it, they flow it mostly with nitrogen or with other inert gases and they look at the behavior of how it performs. Does it flow smoothly? Is it something that's more like a flower or more like marbles as far as the type of constitution of the particles itself. And they give us all that information that helps us then do the math to do the proper design because when you're doing a 900-degree heated unit, you can't see inside it. You don't know what it's doing. You can only infer by the behavior.

So yes, PSRI are very core to the work that we're doing in scaling up. And they're a tried and true method of scaling up. So a lot of companies in the world, when they're developing new fluid solid systems, we will go to PSRI, get all of the fundamental math sorted out and then make sure they can do that experimental modeling before they go and build in steel. So yes, they're -- they're going great. They're fantastic. We're doing some pretty large-scale cold flow testing with them at the moment, if that's what Dave wants to hear.

Yes. There's a couple more from Dave, so I'll just flick through those quickly. Will you need a fully scaled reactor design in order for the M Resources Whyalla bid to proceed?

I can take that one. From the design side, yes, we're designing a 30,000 tonne per annum reactor. Now we can't really talk about the scale that's required for M Resources. There's a lot of probity around that particular project. But as I said previously, the 30,000 tonne is quite a sweet spot for large-scale hydrogen industrial production. And we have obviously got -- one of the key criteria in designing that size is that it's scalable. And with the likes of PSRI, we are checking the scalability. No concerns going up from there at the moment.

Yes. Okay. But in terms of sorry, just to answer that question, I suppose, the answer -- like to get the bid, do you need a fully scaled reactor design in order for that? Or do you know to me?

No. Look, the short answer is no. I mean I think at this stage, it's much more macro than that in terms of the economics of it. I think look, it's a bid that's led by M Resources. We're strengthening that bid with a low-cost hydrogen input into DRI, which is the strategy. And with that, I think the confidence in the technology is there, KBR is right behind us in terms of our ability to deliver that project, and we can't be clear on scale at this stage due to probity. But I think it's a very strong bid. We've seen the economics. It's well regarded.

That's public and the list is down to a very short list and there's a decision this year. So that's as much as we can say on that. But it's a potentially transformational project for Hazer. It's in our backyard in terms of Australia. It's a strategic asset and a strategic city for not just South Australia, but also Australia. So I think the bid that's been put together there is going to be extremely competitive. Simon, I was just looking down some of these questions. There's a ton of questions in here that are excellent.

And if you're okay, given timing, I might just sort of rattle down some of them and sort of try and address them as we go along. Andrew has asked some excellent questions on the design package and paid studies. I think, Andrew, the answer is yes. As this technology is now at a mature stage, we're able to offer that design package to prospective clients. And of course, that comes with a paid study. And that's the ultimate process.

Of course, there's a revenue associated with that, and that's what the model is based. We're a licensing model. We're not a capital-heavy model. We're a capital-light model. And all of our customers and clients will ultimately license our technology through us and KBR and of course, build own and operate that on their own, and we will receive license revenues in return for that. You've got -- you've asked a bonus question here on BC and Suncor.

I'll just wind the clock back for 3 years. Suncor came out of this project due to strategic reasons about 3 years ago to focus on oil and gas. And this project is now owned 100% by Fortis. So it's a simplified structure there, which I think makes moving ahead much more straightforward. So just look out for more updates, as Tom said, on that front. Capital costs, we can't be too definitive on in terms of Oliver, in terms of the plant yet. There's a range for sure. It's in line with our economic assessment is what I would like to say.

And I know the team is working very hard on how do we bring that down. First cut, of course, is always a certain number, and there's always room for optimization. But what we have seen already is in line, if not better, than what we have assumed in our economic and technoeconomic assessment. So we're very confident at this stage. It's not -- Tom, it's not overly complex kit, right? I mean simple stuff. So we're kind of within the range of what we think the industry is expecting.

Yes. So I think that helps answer that front. Mohammad, you've asked some really good questions around North America and potentially Africa here in terms of go-to-market. Africa is quite a different market. And aspects of Africa, and I would say the Middle East are very attractive in the long run, of course. But the go-to-market, it's worth reminding people that we've now got a sales force through our strategic alliance with KBR, Tom, over 80 people.

Just in sales alone.

Yes. So we've gone from a firm of 15 that are developing a technology in Hazer here in Little Perth to having a global sales force that is out there talking to customers and clients through the ammonia channel, through the methanol channel through the other channels that they've got in 80 locations worldwide. So we've just expanded our sales force by an order of magnitude.

So if Africa comes to the top of the list, then fantastic. And we'll just see how that plays out over time. I think there's a question here on data centers from Oliver. I did mention data centers. It may not be immediately obvious how our role can be played in data centers. But data centers are going to be an enormous sink for power. And the grid will not be able to sustain that power. And so when data centers are built, they will need independent power behind the grid, and that is where Hazer has a role to play.

Of course, providing hydrogen into green power or clean power for data centers and other opportunities. So it's an emerging area that we're aware of. We've had some inbounds in this area and in particular, in North America, and it's an area that we're continuing to explore where we see a major opportunity, frankly. And gas is obviously down as the main fuel for gas to power. But to complement that with Hazer technology, I think, is a major win for the power and the energy that's required for data centers.

Simon, Tom, is there anything else that you see jump out there? I think we talked about cash.

Yes, I reckon -- I guess there's a fair few questions on becoming revenue neutral, I suppose, and that sort of thing. How many license agreements or do you know what I mean? Like we can, cash flow positive.

We're edging closer. I mean we -- look, we're pre-revenue today, largely pre-revenue. We're starting to see revenue now coming through in Canada and the U.K. I'd expect that to expand as we continue to, as Tom said, secure those paid studies, and that's normal at this stage. We've made assumptions that every paid study is about $1 million. That's roughly what it is in terms of revenue. Our cost base is low. I think that's obvious from our cash burn. So you can see very quickly as a licensee -- or sorry, a licensor of the technology that we are not that far away from being able to self-fund.

Of course, we're still pre-revenue, but we're edging closer. A lot of the capital has been spent developing 5 scale-ups or if not more when you add on the Canada pilot and some other things that we're doing, this business is getting much closer now to being self-funding than it ever has. So we're in a good place. We've got to continue to secure those studies and move all of these projects forward. But that's the excitement of having this PDP so we can get it in front of clients and customers and start to sign them up. And that's oversimplification of our strategy, but that's kind of the direction.

Lots of questions about Whyalla, see David, you've got another one, hopefully. I can -- what I can say is, look, I think you should anticipate a decision this year. That's what's out in the public domain and look out for that in the due course.

I just -- there was one other one that came through on e-mail from Dave Lewis. Has the recent asphalt qualification advanced your project with Chubu in Japan?

Tom, would you like to pick that one up?

Yes, sure. Absolutely, the results are giving us a lot of confidence. We are in the process right now of international qualification. So we've actually just gone and confirmed our international standards. So we're doing international qualification. Two key jurisdictions. Obviously, the obvious ones would be first. And yes, this will help us a lot in confirming the Chubu project.

But at this stage, it's all still in discussions. We can't say too much about that. But the international qualification, asphalt is probably quite transportable globally. You can always make it near where your Hazer unit is, which is fantastic. So I think that this will be a bit of a game changer for the projects that really want to push forward and develop a large-scale solution for graphite. It's all voice of customer.

The reasons why we're focused on these things like hydrogen application, even data center and also asphalt concrete, steelmaking and then going on further is because this is what we're hearing we need to help solve. It's good to have a product to go, hey, you guys can use this for whatever you want, but it's actually now taking all of the feedback that we're getting and actually working those solutions ourselves so that we can clearly show the value proposition to someone who doesn't have to go and do the hard work themselves.

Yes. Yes, it's nice. So I'm conscious of time. There's a couple of questions here from Andrew Wilkinson, which I think are worth addressing. Have any potential customers decided not to proceed? Look, it's never all roses, right? I mean I think what's fair to say is that we've constantly talked about at the corporate level here and with the Board, what is the biggest risk for our company. It's not about technology risk anymore. It's about -- it's the risk of just pace. We -- for the most part, we are dealing with very large corporations, and they don't necessarily have the same level of momentum that we like to have respectfully.

So what we try to do is we try to -- we've obviously got a diversified portfolio. We've got multiple discussions. We've got big projects that are emerging. I apologize if things don't necessarily go at the pace that we'd all like, we're as impatient as you are. But we are dealing with large corporations that have their own processes, and that is partly, in some respects, our largest risk, having KBR there, there's constant dialogue meeting these partners, having that design package, I think, helps accelerate a lot of these discussions.

So we're in a good place. We're never comfortable with pace because we're a small cap, we're entrepreneurial and we want to move forward. So we've got how we mitigate that risk is multiple discussions, multiple portfolio discussions. And look, I think ultimately, many of these are going to drop over time. So everybody's got their strategic priorities, and that's how we try to mitigate. But we haven't really had anyone drop off. We have a lot of inbounds that come in. And now we're actively out there target marketing, which I think is a big part of our marketing strategy, which we haven't done, I guess, over the last 2 or 3 years.

So Simon, I think that's probably a good place to start. I've just sort of scanned all this, and we've got some similar questions, which I hope we've addressed. If we haven't, then we will endeavor to get back to people directly via e-mail. But I would just finish by saying thank you for joining today. Hopefully, you can see the great progress that we're making with the design package with the alliance, with it's 12 months literally, almost to the date that we signed up with KBR.

And I think it's -- we've been through the storming, norming phase of developing an alliance. I think we're now in that performing stage. I think it's fair to say, Tom. You're spending a week with some of their senior management. We have great dialogue going at the corporate level, and we're very excited about the next phase. So please stay tuned. There's going to be a lot happening over the next 12 months, and we're very excited about the next phase. I'd like to think the stars are aligning.

Tech is good. Great actually. The pipeline is building. The graphite is getting momentum. The tailwinds of policy and government and energy is, I think, turning to strengthen. And we've got that robust funding position. So a long runway through some substantial re-rating milestones for us. So thanks for everyone for joining today, and we'll continue to keep you updated. Thanks, Tom and Simon.

Thank you.

Good morning, everyone, and thank you for joining us today. On behalf of Hazer Group, I'd like to welcome you to this December quarter investor webinar. [Operator Instructions] Presenting today is Hazer Group CEO, Glenn Corrie; and Tom Coolican, who will take you through the December quarterly report and provide an update on recent operational and commercial progress. I'll now hand over to Glenn and the team to run through the presentation.

Thanks, Simon. Sorry for being a few minutes late, a few technical issues this side. Good morning, everyone. Belated Happy New Year to all of our shareholders, and welcome to our Q2 webinar. Thanks for joining today. As Simon said, I'm joined on the call by Tom Coolican, our Chief Operating Officer. Tom has been with us for 18 months. I'll let him introduce himself shortly, but he's been at the forefront of a lot of our strategic projects, been managing a lot of the graphite monetization work that we continue to share. But importantly, he's also been at the interface with KBR, and he'll share some of those insights with us all shortly. Together, we'll present the results from the quarter. Our quarterly results or at least our report was out last week. We'll also share some other highlights. We've received quite a few questions in the last few days, so we'll try and get through most of those this morning. If we don't, we'll endeavor to get back to you as soon as possible. So Tom, over to you for a very quick introduction before we get stuck in.

No worries. Thanks very much, Glenn. Good morning, everyone. My name is Tom Coolican, I'm Chief Operating Officer here at Hazer. And as Glenn said, I've been here now for 18 months. So I've spent more than 25 years in upstream energy across major oil and gas companies and also mid-caps as well as start-ups as well. So previously, I've held roles with Woodside Energy, with ENI, the Italian operator, also Jadestone Energy and then more recently with GR Production Services as their Executive General Manager. So what drew me to Hazer? Just as a quick side note, I guess, look, I think it's still -- having been here for 18 months, I think it's still the most promising decarbonization technology for the energy industry. I think that what stands it apart is really its scalability and the ability to actually deliver clean energy where it's needed. So yes, nothing's really changed since I first sort of came across the company, and I still feel very confident that this technology is on the right track. So I'm very happy to be here today, and I'm looking forward to sharing the results with you.

Great. Thanks, Tom. All right. If we can just move, Simon, on to the third slide. Great. Well, look, I know everyone is familiar with our vision and mission. Just to recap on our technology for those that are not necessarily that familiar with it. We transform methane emissions. Methane is 25x more harmful than CO2. We convert those emissions into clean energy in the form of clean hydrogen and critical minerals in the form of a very high purity form of graphite. I like to talk about the technology as one technology that serves 3 markets: the hydrogen market, the graphite market or the critical mineral market as well as overall industry decarbonization.

So we're at the forefront of the energy transition, if you like. But the really important aspects of our tech that are, I guess, the differentiators and the competitive advantages is that we're low cost. We're a pragmatic, practical, scalable solution, as you will see again today. that integrates into existing facilities and is available to decarbonize a very, very dirty industry today. And you'll see again the size of the industry, the size of the problem and the size of the opportunity for Hazer and our advancing technology.

In terms of our agenda, which is the next slide, we're going to effectively just recap on our highlights for the quarter. We will then do a brief update on the hydrogen market, touch a little bit on graphite. Tom will talk to the technology scale up and our go-to-market strategy. We'll come back and talk about steel, that Whyalla opportunity that we've talked about in December last year, the POSCO extension. So there's been a lot going on in steel.

Hazer Graphite, of course, the other part of our technology, a corporate update, the catalyst for the next 12 or 18 months and then open up the call for our Q&A. So just jumping straight into our highlights. Thank you, Simon. We posted a solid quarter of performance. We continue to build on those foundations, those important foundations of commercialization and set that stage for a pivotal calendar year ahead.

Firstly, we're making really good traction with KBR. Not forgetting, we only signed this deal back in May last year. We got working in earnest in June and July of 2025. We've made excellent progress on the design package and the commercial scale up, not forgetting that we are designing and developing large-scale commercial facilities that are capable of decarbonizing one of the world's dirtiest industries. So -- it's a massive piece of work. We could not be doing it without KBR in terms of the design package. It is on track for this quarter to at least get in front of customers and give them the dimensions of what they're faced with in terms of integrating our tech into their facilities. And in parallel, the global marketing campaign with KBR is also in flight, and Tom will talk to that shortly.

Secondly, we cut our first Hazer, KBR transaction with Energy Pathways. So good to get out of the blocks with our alliance with Energy Pathways. It did gain U.K. government recognition during the quarter, which gives it access to some good fast-track approvals. And that project has now progressed through to revenue-generating project, which is the second for the company, but the first for the alliance. So big things in front of us there.

It was a pretty big quarter as well for steel. So there's a bit of a deep dive in the pack on steel and how Hazer fits into the overall process. We joined forces with a group called M Resources. We're very excited about this partnership, and we are really strengthening their bid for Whyalla. So we'll talk about that a little bit shortly to the extent we can. And in addition to that, we also signed an extension to our strategic partnership with POSCO after some very positive graphite testing results that they've been undertaking over the past 6 to 12 months.

In terms of graphite, we continue to product development, market development progress is still going on. Hazer Graphite is now being confirmed suitable in a number of industries, cement, steel, of course, and we're looking very closely now at asphalt and bitumen. So really big markets, really big opportunities there for our graphite as well as other industries. And then finally, we continue to engage constructively with governments at the federal level, at the state level. And we continue to see improving policy framework at the federal level, which is very important, starting to recognize methane pyrolysis and what Hazer does as a viable clean hydrogen pathway. So we'll talk more about that as well.

In terms of numbers, we ended the quarter or in fact, we start the year with over $17 million funding position or cash position. That was bolstered during the quarter by over $5.5 million of inflows that came from the R&D rebate. That came from $1 million and a bit that came out of the capital raise proceeds that was approved at the AGM. Thank you to shareholders for approving that. Our cash burn, you'll see is down substantially quarter-on-quarter, about 30%. And year-on-year, for the same quarter, is down 40%. So we continue to strip out CapEx, strip out any residual OpEx out of the business, and that gives us that extended runway through what we consider to be some fairly significant milestones ahead of us.

Looking ahead, we continue to maintain that strong liquidity. We've got more grant funds in the pipeline. We've got revenues flowing from Canada and now the U.K. I'd expect that trend to continue and, in fact, increase as we mature those projects. And not forgetting that we don't have that $4 million to $5 million that KBR are contributing in that $17.2 million either. So that's additional to the work, but that's offsetting a lot of the work that Hazer is doing on the ground. Our pipeline, I'll talk about shortly, but that's increased to $51 million. It's more about quality over quantity. But again, just illustrating that we continue to see strong demand for the tech, and I'll give a bit of insight into that very shortly.

Just moving to the hydrogen market. Look, it's a big market, a big problem with a big prize, okay? We -- and this is the problem that we're trying to solve, which is it's -- currently, the addressable market for Hazer is about 100 million tons and that you'll see that on the bar on the left. To put that in context, people often ask, how big is that? Well, actually, it's valued at $206 million -- sorry, $206 billion on order of magnitude out there. But that in context is effectively equivalent to the global iron ore market. So you can give some scale to this.

And all of that is produced with steam methane reforming, an incredibly carbon-intensive process, 1 ton of hydrogen, 10 tons of CO2. And it's responsible as a total industry for 920 million tons. Again, in context, -- that is 2x Australia's total CO2 emissions today. So it's a massive industry with a massive problem that Hazer has the opportunity to disrupt.

The growth you'll see on the right, ammonia, 3x in the next 25 years, but steel 10x between now and 2050. And we're starting to see that. The deal flow is increasing in steel. We've been public on 2 opportunities. We're very well placed with ammonia with KBR. They're the world's leader in ammonia technology as well as methanol, and we've got the deal flow now coming through steel. So we're well placed on those growth industries. And we've got a very exciting period ahead in terms of our ability to disrupt today's industry, not the future industries, but today's industry.

A few words on graphite. It's still a very hot market. It's a critical mineral of the highest order. The U.S., the U.K., EU, Australia of course, have got it at the top of the list. It's a major component of the energy transition, and it's a major sovereign risk as China continues to control the supply side, and Tom will talk about the opportunities we've got on graphite very shortly.

In terms of how the industry is playing out, we continue to see methane pyrolysis coming of age. Some of you have picked up the news flow. We're witnessing a shift. There's growing industry support, government investor support for the technology is a viable hydrogen pathway on the back of the challenges that green hydrogen faced over the last 2 or 3 years. ExxonMobil has now come into this space. They are one of the world's largest publicly listed companies. They are $0.5 trillion. They've teamed up with BASF to develop a technology. So that's a really big signpost for the industry as well as the technology.

And I'm very confident that's going to spur demand from others in this space like Shell and Chevron and ConocoPhillips and others that see this as a viable technology. KBR, of course, it's a growth pillar for them. We teamed up with them exclusively to get ahead of the game last year. And we're also seeing a big shift with government policy and changes. The U.K., the U.S., Japan all recognize methane pyrolysis now as a viable pathway. And I'll talk shortly to how Australia is now gauging this through the Guarantee of Origin scheme, which is now seeking consultation on methane pyrolysis.

So in summary, the industry, the government, the investor support is all starting to gain momentum, and that's very exciting for our company and our technology this year. Tom, good time to talk to, I think, technology scale up and the go-to-market strategy. Thank you.

Yes. Thanks, Glenn. Okay. So just a quick recap. KBR, one of the world's largest engineering companies, and we signed up with them about 9 months ago now. So it's been a heck of a well within 9 months. Getting up to speed with a playbook of a major multinational that scales up technologies has been a big challenge for us. And I think that getting these early days out of the way, getting the first run on the board, I think, has been a real game changer for us. And it sort of puts us in a position where we are confident that this model works, and we're seeing the first paid study starting to come through.

So that's the line of sight that we see to real growth. We've got basically an 11-year term with KBR, and that's backed by a USD 3 million contribution from them. So engineering services and support, in-kind marketing, all sorts of, I guess, growth tools that we need are being provided and supported by KBR for us. KBR's engineering is sort of world-class and world known, and many people will know KBR as the company that delivers some of the largest mega projects in the world in the billions of dollars. But KBR's technology division is a completely separate division that licenses into a lot of those projects. And we are one of 80 technologies that's licensed by KBR into those projects.

So there's a lot of new and emerging technologies that KBR continues to incubate and grow and help sort of turn the corner. But there's also the real traditional KBR technologies like the ammonia licensing that just very briefly, ammonia licensing for the ammonia plants that produce a fertilizer around the world, KBR licenses about 50% of those. So they have a very traditional playbook on how to make these really large-scale technology licenses and then also a growth playbook as well, which we are really locked into.

So we're firmly in execution mode at the moment with KBR. We're following the bouncing ball. We're following the standard process that they use for developing and growing a technology. We've secured our first revenue-generating study, and we are part of the net zero portfolio. So the big thing now that we're working with KBR is those larger trains and larger projects so that we can engage with the biggest companies in the world for industrial decarbonization and making sure that our large-scale single train capacities are really solid.

Just one last thing to mention on that. The cultural fit between KBR and us. We feel pretty lucky actually. We've got similar values and cultures. They're a real creative and inquisitive type engineering organization, and we get a lot of that really good feedback between us that we seem to work pretty well together. We -- scaling up their technologies or scaling up technologies is what KBR's DNA is all about. That's how they've built their company to the scale that it is today.

And then following the scale up to deployment and multi sort of industry and multi-global technology deployments are what they're really good at. So yes, we do feel like we found a very high-quality partner in KBR, and we're working as closely as we can with them to really scale up with them.

Next slide, please, Simon. So marketing-wise, they started off sort of extracting all of our information and all our existing marketing information to develop all of the package of marketing tools that they have. They need tools that they can actually deploy through their website. And if you go on to their website, you'll see that we're in the clean ammonia and decarbonization section of their website today.

They're also fantastic on LinkedIn and marketing and promotion and just getting out there at conferences all around the world. They're at the major global conferences, everything from the ADIPEC conference in Abu Dhabi recently to, I believe they'll be in Barcelona in 2 weeks, again, promoting the technology and really pushing the -- this is a new solution for industrial decarb. So it fits into the industrial decarb toolkit that they use when they talk to their major clients.

One thing we like about the way that they do their marketing is that they're actually quite responsive to market forces and market changes. So one month, we'll be talking about how do we make sure we've got clean hydrogen in the best markets in the world. And the next month, we're talking about structural infrastructure projects and how we can actually make sure we've got a solution that works with steel or works with concrete. So they do move pretty quickly.

Next slide, please. If we can go on to how we're going. So run #1 on the board. So the Marum Energy Storage Hub project that Energy Pathways have developed and are developing in the west of the U.K. near the Lake District is a complex integrated energy project. And for KBR and Hazer together, this is our first paid concept level, so concept engineering study. So it's great. We're working really closely with KBR, but we actually really like the way Energy Pathways does their business as well.

They're integrated really well with the local community, the local government and also their national government as well. So the U.K. government has actually designated this project as a project of national significance. So it's actually a national energy significance project. It covers everything that Hazer has wanted to do. So we've got the hydrogen conversion project and the technology there from methane. We've also got the integration to KBR's ammonia technology as well. And EPP is able to get to fast tracking the government approvals. They've got government support from the ministerial level.

So they've got focal points so they can work with to make sure that we don't have any of the usual large-scale robots when we're doing the engagement. But at the same time, they seem to be very connected on the ground as well. So for us, it's a 20,000 ton per annum Hazer facility. So it's right in that sweet spot for size for economics. The study will be ongoing for the next couple of months. Feasibility scope progress is for hydrogen, ammonia and graphite production and EPP are actually actively looking for ways to deploy graphite at both that industrial large-scale supply, but also at the high-end supply as well, which we think is very exciting.

And we are leveraging the KBR Alliance for that ammonia integration with their traditional ammonia technology. So from a COO's perspective, just operationally, I'd just like to say that with the commercialization strategy that Hazer has been on, this is the operationalization of it, if that's a word. We're actually now doing what we say we do on the box. We're actually doing those concept studies. We're moving them towards FEED-ready, and this is actually the actual pathway that we see the company is best suited for to actually grow to the next stage. I'll hand back to Glenn here to talk a bit about the sales pipeline.

All right. Thanks, Tom. And yes, Ben and the team at Energy Pathways are doing great things on the ground. They're also really exploring that graphite market as well, Tom, in the U.K., which is also getting a lot of momentum. So we're excited about that project. The pipeline is here. We've updated a little bit. You'll see we've added the live projects that we've got. We've got that first-mover advantage, we think, importantly, in Asia, Europe and a bit of North America. You will have seen in the last quarter, we were sitting at around 45 active global customer leads.

That's sort of risen to over 50 now. To give you a bit of color on what's come in, we've actually had 3 new steel opportunities on the back of our announcements of POSCO and Whyalla. So the steel industry, as we'll talk about shortly, is really getting a lot of momentum. We have EV company out of Europe that is exploring and looking at the -- not just the hydrogen side, but also the graphite side and one large gas and power utility out of Asia Pac and also carbon trading group in the U.S. So we continue to see big demand for the tech.

Asia Pac is starting to really get a lot of pace as they have limited opportunities to decarbonize and methane pyrolysis fits just beautifully into the supply chains in those areas that have limited access to carbon capture and renewables. So we continue to explore opportunities there. If you club all of those opportunities and those blobs together, our pipeline adds up to about 1.5 million tons per annum. And as you remember from the first slide or one of the earlier slides, -- that's over 1.5% of the global demand today. So it's a big pipeline. Of course, we work through it systematically. We've also had some shareholders and observers reach out and offer up some opportunities, which we love.

One that I will call out is an RFP in the U.S. called MACH2, which is the Mid-Atlantic Clean Hydrogen Hub that is out there at the moment seeking proposals from hydrogen suppliers for $1 a kilogram. And on the back of that, with ability to secure hydrogen offtake in 2030, and it fits a lot of the opportunities that we've got, and it ticks a lot of boxes for Hazer. So we continue to be active on the ground globally with our pipeline.

Just shifting gears to steelmaking. We had a lot going on in the quarter with steel, and Tom will talk to some of the opportunities very shortly. But just so that everybody is aware of how our technology fits into steel. This was in our Whyalla announcement, but just a little bit of an explanation. Steel, of course, is a massive industry with a massive problem. It's 8% of the world's CO2. Our tech is actually a very perfect fit for steelmaking, very strong synergies and where really everything ties together for us as depicted in that illustration. There's clean hydrogen that's used in the direct reduction process of iron ore into iron, and it's got a built-in graphite offtake because graphite is used extensively in the production of carbon steelmaking, in particular, in the use of a recarburizer in the electric arc furnace.

So it really is where both prongs of our technology fit wonderfully into one application and that built-in graphite offtake is just so valuable for us. There's other synergies. Of course, we use an iron ore catalyst, and that's consistent with steelmaking. We produce and can produce hot hydrogen that integrates into the DRP process that minimizes energy intensity of the overall process. And importantly, the economies of scale. It's a large industry that needs a large solution. And of course, with Hazer's fluidized bed reactor, we're capable of getting up to very, very large scales that fit nicely into steelmaking. So it's a lot where everything comes together for Hazer, and that's really an extension of several opportunities that Tom will talk to now in terms of Whyalla. Thanks, Tom.

Thanks, Glenn. Yes. So the Whyalla Clean Steel bid, I'll just give a quick update there. The process for the sale of the Whyalla Steel Works is a government-led and highly confidential process. So there are limits on what we can share. As publicly announced, Hazer has entered into a binding MOU with M Resources, recognizing Hazer's ability to decarbonize steel. M Resources have submitted their bid as part of the process to acquire the Whyalla Steelworks. Hazer technology was a key component of their bid and provides the decarb component. KBR is also supporting the M Resources bid.

KBR has a long history of supporting large infrastructure projects in South Australia, including at Whyalla itself. So KBR knows the lay of the land and the ground really well. And look, we're genuinely excited about Hazer's ability to decarbonize the Whyalla opportunity. But also more broadly, it's just another recognition that the Hazer technology aligns with steelmaking very, very well. So it's something that we feel is probably one of the best fits that there is going around for how you can deploy Hazer.

So just on POSCO, thanks, Tom. On POSCO, you will have seen we extended our strategic partnership with POSCO. They are the sixth largest steelmaker. In fact, they're the largest outside of China. We're very privileged to be partnering with POSCO in integrating and deploying our tech into clean steel, particularly in South Korea. And on the back of a lot of successful graphite testing over the last quarter, that extension has been signed. Again, big industry, big player. The HyREX process is very advanced. Again, it's a DRP electric arc furnace process.

We're now focused having gone through that stage gate of graphite testing. We're now developing the next steps for the project. So that's something to look out for over the course of the next year or so. So a really important partnership for us as we continue to highlight the importance of our technology and its fit into steelmaking. That's probably a natural transition into graphite. Perhaps, Tom, if you wouldn't mind talking to sort of where we are with application testing and the next phase of our graphite monetization plan.

Absolutely. Thanks very much, Glenn. Just to call out, I guess, this is probably one of the most integrated team efforts that Hazer has done over many years. The graphite has been studied by the universities. It has been developed in all sorts of different applications. And I think now it's sort of coming to a natural business case development. So it's really come out of the research and study. And something to call out, we'll move on very quickly from this slide, but something to call out is that this is -- the Hazer Graphite is an absolutely unique product. It is not standard graphite. It has its own unique properties. It's not carbon black, and it's not other products as well.

So the research has given us the insight into what this product is. And now the application development uses that research to actually be able to deliver it to the largest global markets. So just moving on to the next slide there, please, Simon. So the Hazer Graphite being this versatile and valuable product, what we've gone and done basically is we've assessed our graphite across a number of different industries, and it continues to be very encouraging from the results. Where you can see from the strategy that we're looking is for the world's largest markets where we have the largest consumption of carbon-based product that is around the world. And if you think about concrete, concrete is the most significant man-made product in the world in terms of volume.

Our strategy, I think that over the last year, especially, we've really refined this strategy to target very specifically the response to market movements, but also the focus on these large volume markets with a genuine direct drop-in application. So what I mean by that is that out of the back of the reactor with no post processing. This product can be dropped straight into these applications, and that's where we've been really looking. And the key for this, obviously, is that the attractive price point, we have a minimum price that we're targeting. And what we're seeing is that at the moment, typically above USD 500 a ton is where we're aiming to deploy our graphite. The work completed so far from the work priority markets that are emerging for us. Iron and steel manufacturing is definitely really high on the priorities just because of what we talked about before with the synergies in using the hydrogen as well as the graphite.

Concrete additives is another one where you actually see pretty promising results so far and more to come and also asphalt binders. Now customers there are seeking lower emissions carbon products. They're trying to get away from either the high CO2 products that are post generated or from the mined products as well. And so these are sort of the largest addressable markets that we've been able to identify in the world where we get that price point that we're really chasing. At the same time, and Glenn mentioned it before, we continue to receive strong inbound interest from critical minerals applications.

So EV manufacturers, battery manufacturers, defense applications, high-value sectors. These are much more longer-term qualification processes, and they will require post processing. So we've set up our strategy to be short-term large-scale addressable drop in market and medium- and long-term post-processing market so that we can continue to address those inbounds as they come to us. Ultimately, they're not going away, and we need to be able to support that critical minerals view.

Finally, our recent MOU with Kemira sort of really strengthens that view with that and the work we're already doing through our Veolia partnership that this particular type of graphite with its properties has some promising opportunities in water treatment as well. And that just shows sort of the breadth of capability of the specific Hazer graphite and its unique properties. Back to you, Glenn.

Yes. Thanks, Tom. And I was on a call with the DOE last night, actually in the U.S. and graphite is an absolute priority for the U.S. at the moment and arguably over and above hydrogen. So it's quite a nice fit for us that we can effectively take a gas feedstock and effectively convert that into hydrogen, but also a critical mineral that is so desperately in need in some of these developing nations or developed nations. Just wrapping up, in terms of the corporate side.

We just included a bit of an update on government policy just because we see things changing. We've actually had the Arena Board and management at site, which was an excellent engagement. We've come a long way since they backed us back in 2020 or thereabouts. The CDP, of course, operated very successfully. The tech is going to market. So it's a success story in that respect. The pipeline has grown enormously. So I think they were pleased to see the progress that we've made. We talked a lot about emissions. We talked a lot about cost positioning of Hazer relative to green hydrogen and all the other hydrogen pathways. And I genuinely believe that these engagements are super critical for Hazer as policy continues to evolve. And we're starting to see that shift. Some of you may have seen, but the Guarantee of Origin scheme is now out for formal consultation on an amendment that we expect to include methane pyrolysis. So that's strong recognition of Hazer and strong recognition of this extremely viable pathway.

I also spent time in Canberra. I met with -- had a privilege of meeting with Minister Ed, the Minister for Industry Science and Innovation, excellent conversation, keeping Hazer relevant in Canberra, but also at the policy level. I met with the Climate Change Authority, the Critical Minerals Office, of course, just to position Hazer and how we fit into the sort of the ecosystem of decarbonization technologies that are available. And so really good feedback on the tech, the progress, but also the funding programs that are available and the grants that are out there now. It's much broader than it ever was.

There's industry programs around clean steel, green iron, Whyalla specifically, there's over, I think, at least $1 billion being allocated to Whyalla from the federal government as liquid fuels, critical minerals, they're all open, and we're all exploring all of those at the state level as well, WA, South Australia has earmarked $400 million for -- specifically for Whyalla technology. So we're hunting down and exploring all of these opportunities, and we're very well positioned where we are as a company and an advanced technology.

I think that's pretty close to the end. I think if we just move to the next slide and then open up the call for Q&A, I've seen a bunch of questions come through already. So we're keen to get on to those. In terms of our next 12 months, we're going to continue to come out with updates of what the time line and the milestones look like. This year is really all about converting pipeline into licenses, and that's a strategic imperative for us. I hope you can see the signposts are there, the partnerships, the early runs on the board, the design package is there. The pipeline is growing. The funding position is strong.

So we're in a very, very good position to execute on those projects and opportunities that give us that pathway into licenses. And we're going to leverage KBR. We're going to leverage all of the work that we're doing with graphite. And just a reminder that one deal here, one sizable deal at 50,000 tons per annum is in our economic model worth about $80 million to $100 million of license revenue. So you can see the size of the prize is there, and that's what we're focused on effectively realizing. We've got to advance our key projects through FEED and contracts. We've had a few questions on Fortis, and we'll talk to that as well throughout the quarter.

We're building momentum again there, and we're moving forward very positively. We lost a little bit as we went into Christmas, but we're fully aligned with Fortis, and we've got a plan of attack there, and we'll come out with more information on that shortly. Whyalla is a real game changer, as Tom identified for us. It could be a very transformational project and strategic, not just for Hazer, but for Whyalla as well as for Australia. So that's -- we're really excited about being in the mix there, and we know our technology is differentiated. Graphite monetization strategy is coming together. Look out for near-term updates on that, our strategic partnerships, our offtake signposts -- and then finally, unlocking new growth, new strategic partners, new investors, new deals, new markets.

That's the focus of the company at the moment. Those 4 pillars of our strategy. Of course, that's underpinned by a robust financial strategy and a can-do attitude from the team. 2026 is really shaping up to be an exciting year for Hazer, strong tech tailwinds of the market, the government tailwinds, the deep pipeline, the partnerships and the funding position, and we're really excited about delivering. Simon, should we just turn to the Q&A? I just noticed we've 35 minutes or so I'm keen to get some questions going.

Yes. And we had probably 12 come in before we started already. So let's just start with those. So Kapil Seth e-mailed earlier about a KBR selecting a biomethanol project in the Middle East. Did you -- and given the KBR Hazer alliance and the overlap work with the demonstration plant, are there active discussions ongoing with KBR to use the Hazer Tech for this plant?

Yes. No, that's a good question, Phil. Yes, look, I can't comment on specific announcements that we're going to make or will or may make. But KBR, in particular, has an extensive and strong relationship with many players in the Middle East. There's a number of big Middle East projects that are available or open at the moment, as you've identified. We are throwing those into the pipeline. They're all under consideration.

The Middle East continues to be a very strategic market for us. It's got low gas prices. It's a big ammonia, probably one of the largest ammonia markets in the world, along with methanol, big capital, big players. They're not necessarily the fastest out of the blocks, but they are slower burners but big -- but potentially very big projects and too big to ignore. So definitely a strategic market that we'll continue to look into with the right partners.

There's been a couple on M Resources, so I'll try and put these together. So Atosha asked, how did the M Resources partnership come about and why were they considered to be a good partner? And I guess if they don't be selected, do you think there's an option for you to still be used in whoever is selected?

Very good. Okay. So you might have picked up Atosha in the announcement that we're partly a free agent. Of course, that if -- and we've had this discussion, of course, with M Resources in terms of their ability to win and if they don't, what happens. Look, we've known a lot of the M Resources team separately for quite some time. So there's an established relationship there. It was a natural discussion as they moved into the process. We got to know what they were doing and how they were sort of thinking about the decarbonization aspects of Whyalla. They've made an assessment of Hazer, but also other tech methane pyrolysis technologies. They chose us as well as electrolyzers. They know there's a massive difference between us and electrolyzers. It's literally night and day. So it was clear from the get-go that Hazer could be a very strong fit for that project and the whole decarbonization plans for that region. It moved fast as we got into the back end of last year. And so we got talking about how we sort of would bring this together. We got involved with them. We sort of papered it all up. And from what I've seen, I know Tom has said that we're obviously under confidentiality, strict confidentiality, it's a government process. But what I can say is from what I've seen of the bid and how Hazer fits into it, techno-economically, I'm very confident that their bid is a very, very strong one. And so we are going into this very positively. It's a process that will take a bit of time, but it's a very strategic project for everybody involved. So we're, again, excited about the opportunity with them.

Excellent. Let's just move straight into Fortis. Has the site been identified? I know you sort of touched on it briefly, and there's a few other questions about Fortis. So can you just give a quick update on that?

Yes, I've seen those, Simon. Yes. So good questions. Look, more broadly, the project is going well. We would have liked to have provided an update at the back end of last year. I think Christmas and New Year got in the way and holidays and the like. But we're back at it. I know feeder under the desk. It's a large project. It's advancing well in strong collaboration with FortisBC. We engage frequently. I know Tom is dealing with the team in Canada weekly, if not daily at the moment on aspects of the project. Our focus is on project maturation. Site FEED, completing FEED with the right partner and getting the project to a development FID. They do take time. We're making good progress, and we're exploring ways to continue to accelerate -- how do we accelerate this project. I know from Nick and Joe and the team in Canada, it's a priority project for Fortis. It's got government backing government support. They've chucked CAD 11 million behind it. And again, just keep an eye out, we expect to make an update on that project in the near term.

All right. Can you elaborate on the status of the larger reactors?

Do you mind taking that one??

Take that one, if you like, Glenn. Yes. Thanks. Yes. Look, the design package we're working on at the moment is a design package, which is fundamentally built around our proprietary reactor hardware design. Where we've targeted the base design is 30,000 tons per annum of production, which is already significantly large in terms of hydrogen production. The design that we have developed has the ability to be scaled up or down from that point. So one of the key elements of our design was we didn't want to go with something which was sort of scale up, scale up, scale up to the point where we hit a limit.

What we decided to do is go for actually quite a big reactor design and then be able to scale it both ways down and up, so we can go all the way down to prototyping and all the way up to 50,000, maybe 100,000 tons per annum single-train capacity, but I don't want to push our CTO too hard on what the maximum size would be. The concept of fluidized bed reactors has been around for a really long time. It's a well-trodden path. And so we work with the world's experts in fluidization in process design and in these reactors so that we are confident that we're not going to sort of invent anything brand new here.

We're just using the best in the industry to get it exactly right. Some of the principal challenges that we have that are the areas that we feel we've actually had the most opportunity to succeed is in optimization of heat, the conversion basis and the quality of the product. So if we're comfortable that these are actually under control at this 30,000 ton design. This gives us the capacity to be able to move up and down from there. And yes, it's something that we know is a huge challenge for the industry and having those ones really under control, I think, is actually key for us.

Thanks, Tom. I think let's probably move to graphite because there's quite a few on the graphite. And so Dave sent this one in, but it covers quite a few of the others there as well. Are there applications for Hazer graphite that are now good to go? No further testing needed?

Yes. So Tom, I'll let you jump in. I think, look, with the graphite work that we've been doing is extensive, as Tom explained. We've got -- we're working it internally. We work with all of these strategic partners, Kemira the latest. I get often asked about why an MOU. MOUs in my -- in our view, are value creating because we have partners that actually do work and contribute to the overall strategy of the company. And often it comes as part of the collaboration. But in Kemira's example, we're doing work with water treatment alongside some of the work that we're doing with Veolia out of France. So there's a lot of work going on. We've identified, as Tom said, some strategic markets in asphalt, cement, asphalt, bitumen, steelmaking as priority markets, what we call drop in. limited or no post-processing or preprocessing before they go into the particular application, but they're large markets that have got what we call high confidence to them. And their pricing ranges can be anywhere between USD 300, USD 400 a ton and over $600 or $700 a ton. And that's consistent with our economic model. And of course, that adds great value to the technology and the techno-economics, but also the overall cost of supply of both the graphite and the hydrogen product. So lots of markets. We're prioritizing them. Tom, anything to add on that?

Yes. I probably just add one thing. No further testing required. Ultimately, your end user, say, for example, it's a concrete manufacturer will do their own testing as well. So we can go with a product, which we say is good to go, and that end user will actually conduct their own tests because they're going to have to demonstrate to the infrastructure project or the government or whoever that it is actually as good as what we say. So there will always be that end user component to the testing, but that shouldn't stop us from actually having everything certified and ready to go so that end user can actually do their final testing.

Yes. And steel is built in and is a built-in offtake. That's a beautiful way of thinking about it. The carbon actually goes into the production of carbon steelmaking. So it's a pure sequestration of CO2 as well. So there's a lot of benefits. We don't often call out our graphite as low emissions, and we should more frequently, frankly. But the -- effectively, the emissions associated with our graphite and the way policy is shifting is a very valuable product, not just from an application perspective, but also from an emissions perspective and a pricing point as well.

I think we've probably got time for 2 more. David Sell sent this one earlier. Is there any outstanding ARENA grant money due for the operation of the CDP...

Thank you, David. Yes, there is. In fact, there's other grant funding available to us as well. I think it's around $1 million, and some of that's going to be released this year. So that's another form of nondilutive. On top of that, I think we've got $2 and a bit million from Mitsui, the Western Australian government, which has got some milestones coming up as well. So these are very valuable funding inflows for us because they're nondilutive, and they contribute to the growth strategy of the firm. There's other grants in the pipeline as well. There's industry growth program and some of those other grants that I mentioned. So we're going to lob in bids on some of those as well.

All right. And a final one here. Does Hazer have any analyst coverage? And if so, has that had a positive effect on the register?

Yes, we do -- it's a good time to perhaps call out an analyst actually. We've got on coverage, Declan Bonnick from Euroz. Declan initiated, I think, last year or maybe the year before, but very good initiation report. Declan has -- he does updates frequently. I think his target price is sitting at somewhere between $0.70 and $0.80. We've also got Philip Pepe from Shaw and Partners, who covers us. I think his target price is also in the -- in that same sort of range over the next 12 months, $0.70 to $0.80. I think if you'd like to get hold of their research reports, then either reach out to us or reach out to the brokers directly, and I'm sure they can get you a copy. They're excellent analysts. They've been across energy, tech, in the space for a long time. We're privileged to have both of them on board. And I'm also confident that we're going to probably pick up a few more analysts this year and see what we can do with getting them to site and across the -- closer to the technology.

All right. Thanks, everyone, who joined us today. Thank you to Glenn and Tom for the presentation. Look, Glenn, I might just hand back to you for a closing comment before I hit the end button.

Yes. Look, I don't have anything more to say other than thank you for supporting us. Look, we're in a really good position. We did a lot of work last year to set the foundations of -- for calendar year 2026. I feel like we're in a very good position. I know sometimes some of these things don't go as fast as we'd like. You probably don't appreciate that I'm the most impatient person in the world. So join the club. But we've got a very good tech. It's a very, very strong tech. We've got a strong partner in KBR. We have got, I think, the turning tailwinds now of government support worldwide, including in Australia. We've got that deep pipeline of opportunities that's growing also in Australia that's getting momentum. And we've got that extended runway, that funding runway of over $17 million to enable us to effectively kick some important goals for the company and the technology. So again, thank you for joining the call today, and we'll endeavor to get back to you all with answers to the questions that we weren't able to cover today. Thank you.

Thank you.