Hazer Group Aktie

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.

Good morning, and thank you for joining us. Today, we are joined by Glenn Corrie, MD of Hazer Group; and Luc Kox, Chief Commercial Officer, who will provide a brief update following the release of Hazer's June quarter results. [Operator Instructions]

Glenn, over to you.

Thanks, Simon. Good morning, everyone. Welcome to our webinar. I'm joined on the call, as Simon said, by Luc, our Chief Commercial Officer, together, we'll present our results and some other highlights.

So in terms of our agenda for today, we want to talk highlights, obviously, our strategy update, provide the latest on the global hydrogen market as well as the outlook. Luc is going to present an update on the KBR deal and all the good work that's being done there. We want to come back and talk graphite. It's the other side of our tech. There's a lot going on in the market there, and we want to provide details of Hazer's Graphite as well as our marketing strategy, then turn to progress on our commercial projects, a bit more insight into our sales and our customer pipeline, come back and finish with a corporate update, recap on our 2025 priorities and then open up the call for Q&A.

So just jumping down then, Simon, to our highlights page, just diving straight in. Look, Q4 was a very transformational quarter for us, arguably one of our strongest and most strategic yet. It was dominated by our strategic deal with KBR, a global engineering giant to form what we believe is a very powerful alliance that supercharges our commercialization and licensing of our technology. More details very shortly on that. But I'm very confident that this partnership will unlock substantial value in our company as well as our technology. I have met with the very senior leaders of KBR almost at the very top of the company. They visited our site and our company in Perth. And what I can say is we're aligned on strategy. We're aligned on what success looks like for this alliance. We're aligned on what the target markets in the pipeline look like.

And we're also very aligned on getting early wins and early runs on the board. So very encouraged by the early work that's being done there and very encouraged by the collaboration between the 2 organizations. On other highlights, you can see we worked hard on our scale-up. We partnered with PSRI, a leading industry leader in fluidization to accelerate the process development. That complements a lot of the work that KBR is doing in terms of the reactor and the fluidization in particular, the scale up to very large levels. We also achieved a very major milestone in Japan, Chubu, Chiyoda Corp have successfully completed their PFS or their pre-feasibility study. They've actually selected site, and they have very confidently confirmed a very strong economic case, and that is very good progress for our Japanese project, and we're very excited about the pathway that, that is on.

Corporately, we successfully raised during the quarter, in fact, a little bit trickled over into this quarter, almost $11 million with very strong backing from strategic institutional as well as retail investors. Thank you to everybody that participated and supported the company through that process. We now have a very extended runway through some very significant milestones, licensing milestones, project development milestones and technology development milestones. Our register is filling out very nicely. I think at last look, we were somewhere between 15% and 20% institutional holding. That's come a long way in 2 years. So we continue to see strong growth in the quality of our register and the attraction of some larger institutions.

A couple of other highlights there. You can see we unlocked further government grant funding. Specifically, this was to our graphite product and our market development. Graphite is getting hot. We want to share more of that very shortly. There's a lot of dynamics going in the market that are very advantageous for Hazer. And then we kick some more goals with our IP protection strategy, which protects our first-mover advantage. So overall, strong momentum as the market opens up for a very practical low-cost hydrogen solution that can decarbonize industry today.

In terms of strategy, our staircase, we remain on track. We continue to move up that staircase. We're very confident now in our commercial readiness. That follows the successful CDP test program that we've been through, all that successful and subsequent testing and modeling that Tim and the team have been doing. Our tech is market ready. Our project pipeline is building very nicely. So moving up into scale up.

We're making very good progress there. We've locked in a very important strategic partnership to support us getting bigger and doing it faster. Our first revenues have been flowing now in Canada, and that's a very strong signpost of our commercial project and reinforces that low-cost licensing business model that we have developed. Of course, there's more to be done. As we move towards the top step of our staircase, we're targeting commercial rollout, getting our technology to market at scale as quickly as possible. We've always said get 10 of these projects into the market over 10 years. I'm very confident we're going to exceed that, and we've got everything in front of us to be successful. The size of the [ price ], the pipeline, the partnerships are all getting momentum.

So if we move down to the next one, please, Simon, in terms of our customer pipeline, we made really good progress through the quarter on building out our pipeline. We're giving a lot more detail here in terms of where and potentially who is interested in our technology. We see our pipeline expanding rapidly. Our target markets are obviously North America, it's Europe, it's Asia Pacific and to some extent, more recently, the Middle East. Australia, as you can see, is building out very nicely. We've got 7 live opportunities that are being pursued there. And you can see the size of the bubble that we have annotated there relates to the potential capacity of a Hazer facility. So the larger ones are over 80,000 tons. The smaller ones are between 20,000 tons and 80,000 tons. So the scale is there on the bottom left for you to reference.

During the quarter, we started -- in fact, we started the quarter with 45 global leads, and most of those are shown on the map across multiple industries, traditional industries of petrochems, refining, ammonia, but also new industries, sustainable aviation fuel, steelmaking to some extent as well. So the majority of them, as you can see, are large-scale opportunities, and that is also helping us inform the way we think about the scale-up of the technology. With KBR, we potentially add hundreds of opportunities in ammonia and methanol. And from our last webinar, you may recall that there is something in the order of 450 ammonia plants worldwide. That's the green dots. And of this, 260 facilities or ammonia facilities are KBR technology. So they today hold a dominant market share, over 50% of the ammonia and the methanol market. So a very important strategic partner for our technology. So pipeline now extremely large, active with an opportunity set of potentially over 300 deals.

Moving on to then the next slide. So the question then is, how do you put a value on this? What is each one of these bubbles or dots worth to Hazer? On the right-hand side, you can see that we've worked the Hazer cash flows under a licensing model for a single 50,000 ton per annum hydrogen facility. The key features of that cash flow is in the table on the left. It's a licensing model, first of all. There's no CapEx associated with that. You can see that it drives early revenues and free cash. Importantly, those revenues start to come in pre-FID. That's the Canada model. Canada is in year 1 of that model, and we are receiving revenues from FortisBC. So it is our strategy in action. And then importantly, the key number there is a single plant for Hazer delivers a net present value over 20 years of $115 million on licensing value alone, okay?

So every bubble on that previous chart is valued at over $100 million for Hazer. With that deep pipeline of 45 active discussions, a much larger price, potentially over [ $300 million, ] you can clearly see that Hazer has the potential to be a multibillion-dollar platform. And that's been the vision of the company to get this tech to market into the hands of the industrial players that need a decarbonization solution. So 10 projects is $1 billion, 20 projects is $2 billion and so forth. And that's relatively consistent with the analysts that have got valuations on us. I think there's one -- I think the Euroz Hartleys report is out there with an unrisked valuation of around $2.50 a share, and most of them seem to be coming in at that level at the moment.

So moving then down into the hydrogen market. So there's a window of opportunity opening up. As we go left to right across the slide here, we've got an enormous market with an enormous problem. Green hydrogen using electrolyzers to split water has failed to deliver that solution. Why? It's very energy intensive. It's about 7 or 8x the energy that Hazer requires, therefore, making it very costly. You've seen overnight that Fortescue, I think, have dropped to green hydrogen projects, Woodside earlier in the week and other green hydrogen projects. So we see this industry shift that just continues to open up opportunities for Hazer's low-cost ready today solution. We've got a proven tech. It's viable. It's a low-cost alternative. We decarbonize gas. We plug in and we utilize existing infrastructure to deliver a very clean, affordable hydrogen solution with no CO2 but with this graphite, very valuable graphite co-product, which is substantial upside for the technology.

The time is now. The market is opening up. The industry and policy, in particular, is shifting. We see gas coming back on to the agenda in a big way globally, and we've got that partnership in place now and enabling us to scale up with global corporations to deliver that solution today.

Next one down, you'll just see, again, there's never any downside in reiterating the size of the market here. The current demand top left, the consumption in the market today is 97 million tons per annum. It's valued at over $200 billion. In context, that is approaching the size of the iron ore market. I always talk about the fact that it's 1/3 going to half of the LNG market. It's a big market with a big problem. Production today is concentrated in 3 industries, as you can see on that bar chart, refining, ammonia and methanol and a little bit of steelmaking. The problem for this market is that 95% of that 97 million tons is produced with Steam Methane Reforming, which emits a massive amount of CO2. It's 10x the amount of hydrogen that's produced. Every ton is 10 tons of CO2. That's our disruption.

Hazer's target markets is really targeting those industries that need that replacement and that clean alternative, affordable solution, and that is arguably our addressable market. So if we jump down to the next one, how do we naturally compare them with Steam Methane Reforming, that dirty source of hydrogen? Well, actually quite well without the CO2. Steam Methane Reforming basically dominates the industry. It's 95% of global production today. There is somewhere in the order of over 1,500 SMR plants. So if you look at the table on the left, we're similar in energy intensity. We have the same gas feedstock. So we integrate very nicely into existing supply chains and infrastructure. But advantageously, we have no Scope 1 CO2 emissions relative to their 9 to 12 kg/CO2. So you can see immediately there were an amazing replacement technology without the CO2, but with a graphite co-product. So very comparable but without the emissions footprint.

Chart on the right, we've used many times before, Hazer is very well positioned, very competitively costed. In fact, we're cost parity with SMR. We're 1/3 of the cost of blue hydrogen, and we're conservatively 1/7 of the cost of green. I think we're being generous there. We see green hydrogen projects sometimes well in excess of $10 a kilogram. So you can just see how very cost competitive Hazer technology is. Now to complete the market side, if we just jump down to then how does Hazer fit within the market. There's a lot of peers out there that are developing a technology in methane pyrolysis. We're clearly leading the pack of all of those peers. We're a frontrunner in the space.

We do a lot of work on competitor analysis. We've looked at plasma. We have looked -- actually, as a technology, we looked at molten beds 10 years ago. We've just figured out that those worth the way to scale. We've got several X factors here that really set Hazer apart that drive our competitive edge over emerging players. Just to call out a few, low energy intensity and high-value graphite co-product delivers us a very low-cost pathway to clean hydrogen. But above all, scalability, that second bottom line, scalability is a absolute critical success factor for a technology. The use or our use of a fluidized bed reactor technology is our major differentiator. It's proven industrial scalability. It's a technology that we've adopted from the refining sector and the metallurgical industry, and that enables us to go big, go more efficiently up to very large-scale deployments even on a modularized basis.

So it's a very well-positioned technology with almost all proven aspects of it incorporating the major aspects of the process. Work doesn't stop here for us. We're confident that we can see upside with energy. We've got some excess heat that we think we can use to even bring that energy intensity down further. And we're absolutely confident that we can bring down costs. We've got KBR looking at our costs and telling us that they think they can go cheaper on certain aspects of it. So there's certainly economies of scale that can be built into this, and there's also massive upside with our graphite. So we win on cost. We win on scale, we win on carbon quality, and we're leveraging this with KBR to secure important first-mover advantage in key markets where we have done already with existing projects as well as new projects.

Right. So Luc, I might just hand it over to you here to talk about our recent KBR deal and the progress that's being made there.

Yes. Thank you, Glenn. Good morning, everyone. Building on Glenn's previous slide, all those aspects are also the reasons why KBR chose Hazer. So we've spoken in the previous webinar about the deal. This is just a reiteration of the highlights of that deal. Important to note that KBR has committed to exclusivity with Hazer. So they will not market any of the other competitive methane pyrolysis technologies for the reasons that Glenn just spoke to. Those are all the key reasons why Hazer is different, why KBR chose Hazer.

So exclusivity in ammonia and methanol, we have the optionality to bring other projects in the nonexclusive markets to KBR. Also important to note, I think, for investors, existing shareholders, we've carved out the existing portfolio. So all the projects that we have developed to date at Hazer, we can bring them to KBR, but we don't have to. If the client, KBR and Hazer think it's a good idea, we can develop them jointly. And that's definitely adding to the momentum in our pipeline. Relevant to mention as well, scale going up. The market demand is big, as Glenn pointed out. KBR is committed to a contribution to the work program financially. So that will also help us in terms of our run rate going forward, preservation of cash and spending our money wisely.

Financial contribution by KBR is very important and greatly appreciated by us all. The market position, Glenn already mentioned, exclusivity of ammonia and methanol, more than 50% of the current hydrogen demand. KBR has a serious position in that market, more than [ 50% of that 50% ]. So yes, a beautiful strategy to have access to that market with a very serious global partner.

What is not on this slide and one of the terms that you can't negotiate is cultural fit. And as Glenn mentioned, in the recent weeks, we've had the opportunity to engage at very senior levels with KBR and the alignment is super strong, target market, path to market, how Hazer fits in the KBR portfolio and in the global markets, it's really a nice and strong alignment on all those aspects.

So maybe go to the next slide, I think I need to make up a little bit of time, so I go a bit fast on. Technical work is in progress. The process design package for larger-scale solutions is ongoing, go-to-market strategy is being formulated in parallel, and it maybe should be brought forward. The market engagements are ongoing. We're already talking to people together. We're exchanging leads. We're exchanging market intel on a daily basis. There's a lot, and it's really exciting to be part of a proper partnership as well. It's we call it a strategic alliance, and that also comes through in the day-to-day interactions. It's a proper partnership on equal basis, equal terms. So it's -- yes, great to be working with that kind of partner.

Maybe move on to the next one, Simon, please, on to graphite, next slide, please. So I think many of you would have been aware that there's a lot going on in the world around the supply chain. Graphite comes to the fore quite regularly. Tariffs are being considered, put in place sometimes. Graphite is a critical mineral for many countries. It's on the critical minerals list. So what that does is that there's a heightened awareness of sovereign risk and sovereign risk around supply chain. So a lot of companies, a lot of countries are very interested in producing graphite locally rather than being dependent on international supply chains and being exposed to the economic and supply risk that those existing supply chains have with them.

Maybe move on to the next one. What it all does, what it all means to state the obvious, is that it puts Hazer in a good position internationally, not only for hydrogen, but now also for graphite. So this is a visualization of our key markets that we're focusing on in terms of key applications. A lot of work has been done in this space in the last 6 to 12 months. In no specific order, concrete and asphalt is something that is right up there in terms of potential applications. As you may recall, with our partners, Chubu Electric and Chiyoda Corporation for the project in Nagoya, that is one of the key focuses is to sequester the carbon in asphalt and bitumen, not as a gas, so it's not CO2 storage, but it's sequestering the carbon in a solid form, which has many advantages, especially in jurisdictions or in countries where you don't have access to gas fields to store the CO2 as a gas.

Through the Hazer Process, you can store it and actually make economic value out of the carbon product as it comes out of our process. Another one to mention is the iron and steelmaking. Obviously, as many of you would be aware, we've got a partnership with POSCO in the market. The interest for steelmaking is in both the hydrogen as well as the graphite product that Hazer produces. We also have an ongoing partnership with Mitsui that I'll address in a second, but in steelmaking is where a lot of things come together. As you may recall, we use iron ore as a catalyst. So we have a low emissions graphite product with an inclusion of iron ore, which is very attractive for steelmaking, a lot of traction in that industry globally.

Other ones to note, water treatment, PFAS removal, a very interesting topic. PFAS is quite important. It's a carcinogenic substance found in water across the world, major concern for water utilities. We've got some potential angles there and are developing a serious partnership in that space.

Next slide, please. So coming to that strategy, and this is quite an important slide, I think, to focus on. So what we do in terms of our market development and product placement in the market, we're focusing on 3 things. We're maximizing uncertainty – I'm sorry, certainty by reducing the risk around supply chain. So we have a partnership with Mitsui, as I mentioned just then. We've been working with Mitsui since 2022, specifically on the placement of graphite, Hazer Graphite globally. For Mitsui, that's a Scope 3 play. They want to help their buyers of existing commodities, petroleum coke, naturally current graphite, other CO2-intensive products. They want to replace that with Hazer Graphite, which is a low emission product. Strong demand there, a serious pipeline leading to, yes, good positions for future offtake deals through Mitsui. And also in parallel, Hazer is also doing a direct pathway.

So we've derisked that aspect of the marketing strategy as well, indirect and direct optionality also in terms of pricing. The other 2 important legs of the strategy are volumes because we're seeing significant volume demand for graphite and of course, maximizing the price. The color box in the bottom left there is an illustration. As Glenn mentioned earlier in the presentation, if you take a nominal 50,000 tons per annum hydrogen production plant for Hazer facility, which is where we're now focusing in terms of capacity, the market demand is there. And that produces approximately 150,000 tons per annum of graphite. If you times that by a conservative price, that for one project would generate $45 million per annum for a single plant. So that's for one plant.

I want to emphasize that all the numbers that Glenn has been mentioning is a single plant location -- projection. I think that's the most important bit of this slide. So next slide, please. Next slide. Yes, earlier in the -- or after the quarter on July 15, we announced a partnership with EnergyPathways in the U.K. I refer to that announcement for further detail. What is important to note is, I think, 3 things. It's a very clever project in terms of the strategic positioning in the U.K. It's a facility potentially of 20,000 tons per annum of Hazer production capacity for hydrogen. And what is very important is the U.K. policy is very explicitly supportive of methane pyrolysis. And I mentioned that because Europe is a bit complicated in terms of regulatory environment, a lot of focus on electrolysis. Economics aren't there. As Glenn mentioned, we see projects falling over the left, right and center. That's why we think this is a potentially quite exciting partnership in the U.K., also strategically to get a foothold in the U.K. market as Hazer.

Next slide, please. Our existing business development pipeline, we've shown this before. We've spoken about it a couple of times. Maybe just to reiterate, our existing portfolio, as Glenn mentioned, it's solid. It's been solid. It's growing. Every week or 2, we add a serious proponent into the pipeline. We are very selective in terms of who we speak with and who we progress with simply because there's a lot of demand. So we have to be selective and only work with those people that really are ready to work with us. So it's a good thing. Overall, the -- if you add it all up, the existing portfolio adds up to just over 1 million tons per annum of capacity in total, which is only -- is less than 1% of the current global hydrogen demand, as Glenn focused on earlier. So with our existing position, very confident that our 10 in 10 objectives, so 10 plants in 10 years is realistic and achievable.

And with that, I'll hand back to Glenn.

Yes. Thanks, Luc. That's great. And I would just say, we're very constructive on graphite at the moment. That market dynamic is definitely moving in our favor. We also see quite a bit of inbound from governments. There is a sovereign risk component to all this with China effectively controlling almost all of the graphite supply market. So that plus the tariffs is really forcing governments to think about how they shore up their supply side for graphite as a critical mineral.

On other projects, I will just address Canada here. We continue to speak with our colleagues or at least our counterparts at FortisBC as late as this week, their commercial discussions on their preferred site are going -- ongoing. We believe they're going well. It's taking a little bit longer than we'd like, of course. But those discussions also do include offtake. So those discussions are always going to be a little bit lengthier when you're talking not just site, but also potential offtake for hydrogen pricing and also graphite. I don't really want to be drawn into a time on it, but it could happen fast once those terms are agreed. So we continue to keep the dialogue live with Canada.

Some of our team will probably be up there this quarter to continue the discussions on the project development as they approach FID. We do see KBR's involvement here as an enabler. In fact, all parties see that. That brings a completely new dimension to the project, in particular, performance guarantees for the customer and so forth. So once site is selected, we think this could run fairly quickly. So we'll keep investors and shareholders up to date as we get progress from that project. Japan as well, we had that major milestone achieved during the quarter. The PFS is completed, site is selected, and there's a strong economic case. Graphite has a home as well, and that testing is underway, and they're now speaking with governments on approvals and funding, and we recently hosted them at the CDP.

So Simon, if we could just turn to the corporate update, I think it's 25. So just rounding out, maybe just one slide back up, that's right. Note to the 25, which is the corporate execution. Yes, there we go. So just to finish off, we continue to strengthen the company across all of our functions. We maintain that robust funding position, over $16 million of current funding, which is recently bolstered by that near on $11 million capital raise, $10.7 million. So thank you again to all the existing and new investors that supported us. If you include our annual R&D rebate, which is due in Q4 of this year, which is circa $4 million to $5 million, that brings our total liquidity and pot to over $20 million. So that's a really strong pot of funding that this company needs for an extended runway to get through some of those very important, what we think is major inflections for the company in terms of licensing.

On top of all this, of course, there's more sources from grant funding milestones that are due over the next 12 months, and we are actively pursuing further state and federal level grant opportunities, including on the graphite side that are at various levels of engagement. So we're -- I think we're in a good position, never comfortable, but actually got that extremely strong runway. On the cost side, we continue to streamline our operations. The costs are coming down. With the CDP now placed into the cold stack mode, we don't see any further testing anticipated in the short term. Operating costs are going to be significantly reduced. Contractor cost head count is down 30%. So we see substantially lower cash burn going forward.

With all of those sources and uses outlook, that extended runway gets us through some key commercial milestones on current trajectory. Our goal is, of course, to always extend that towards self-funding. We see that revenues are starting to flow in through at least our first project, and it is our objective to try and replicate that and bring this business to a point of self-funding as soon as possible, especially with now potential for near-term paid studies through our alliance with KBR. Our strategic focus is centered on strategic projects, pipeline, leveraging our tech into the commercialization and the licensing world, all aimed at unlocking that $1 billion platform that we talked about earlier.

So to wrap up on our remaining strategic priorities for the year, the next one, please, Simon. It's a catalyst-rich period. We've got a derisked tech. We're rapidly expanding that pipeline. We've got that strong and robust funding position. We've got that powerful alliance to deliver multiple license opportunities on an annual basis. And the market, of course, is becoming much savvier to the advantages of methane pyrolysis relative to green hydrogen and electrolyzers. We're a global leader in this space, and we're well positioned. This year, the remainder of this year is all about licensing, commercialization and unlocking that potentially high-value graphite product stream. So that's our focus. We've got the right partnerships now in place to do that, and it's all guns blazing towards those objectives.

Simon, I might just stop there, and maybe we can open up the line to Q&A before we wrap up.

Yes. Thanks, Glenn and Luc. I will just quickly remind everyone that if you've got questions, then it's the time to type them into the Q&A box and we'll work -- well, we'll work through as many as we can. We've already had quite a few come through over the last couple of days. So I'm going to sort of -- I'm going to start with those. The first one, Glenn, is why did Hazer decide to defer the next phase of the commercial demonstration plant testing?

Yes. So we've seen a few questions on that. I think we tried to address that in the quarterly this week. Look, frankly, we don't see any requirement for any more testing. We've done a lot. It's been over 12 months of really intensive testing on the process as well as the reactor concept. I think we partly underestimated how good the program was, the testing program. I think now that we've had the benefit of looking at all the data, Tim and the technical team, technology team have really interrogated all that data and really found that actually we have got a very good concept and very good reactor already in terms of our potential to scale up. I will just remind everyone, we're using a fluid bed reactor. I'm not taking anything away from the technical team, but fluidized bed reactors are proven. So we've come out of this testing program with the information, the data and the knowledge that actually our reactor works, coupled with KBR's expertise as global experts in fluidized bed systems, we're confident in our reactor concept.

How we heat it is really just a nuance of scaling, and that's what we're currently working on at the moment. Demand at the same time has crept up to larger facilities. And we're working on, as Luc said, facilities and potential plants of over 50,000 tons per annum. So we think we're in a good position. We don't see any need to do any more testing at the moment, all of that good data from the CDP. We also had some excellent data from Canada through the reactor testing on the ground there and all the modeling that has essentially has come out of that, and we are in a place where we think we've got already a commercially viable solution for large-scale facilities. It does also reduce our CapEx and OpEx, of course, running a plant is OpEx intensive, and that aligns, of course, with our business model. So that's kind of where we got to with the reactor and the CDP.

Thanks, Glenn. That probably leads into the next couple of questions pretty well. When will meaningful revenue be generated by the company? How long until this point?

Yes, very good question. Look, revenues are flowing already. We've already in year 1 looked for Canada revenue cycle. So that's our licensing model already in action. It's not a lot, but of course, it all adds up. And that really more importantly, symbolically, that's the model that works. I don't really want to be drawn into revenue forecast. But that said, I think it's a fair target that we have several paid feasibility studies on revenue-generating projects this year. And that's the objective of what we're targeting. We're aligned with this with KBR and also our existing portfolio. We're confident in the customer base, and we know it's there.

And we're bringing focus now to the high-priority customers that will effectively sign up to early-stage feasibilities that will lead into FEED and then into licenses. So that's the model that we've got. We're proving it with Canada at the moment. But again, I'd be very disappointed if we don't start to see this year several paid feasibility studies with large players that are very interested in our technology.

Nice. And then probably again leads into the next one, what's the current status of Hazer's funding and cash burn? Do you have enough runway to reach commercial deals?

Yes. So I think I just think covered most of that.

Yes.

Well, look, we're well funded. The liquidity is there. We've got that $20 million or more pot of liquidity, as I like to say, more grant funding, more state and federal government grants in flight. KBR is throwing in also $3 million to support the work program. So that also offsets and cash burn is going down with the CDP and cold stack, SG&A reductions down 30%. So on a net basis, we're in a very good position to be probably spending in the order of -- on a net basis, $1.5 million a quarter. So you can see what runway we've got, I'd like to think it's going to be over 2 to 3 years. That is significant for us to get through some very important inflection points as we talked about. And of course, the target is always to stretch that as far as we can to as close as possible, if not beyond the position that we can be self-funding with those near-term paid studies come through as we expect them to do.

Excellent. Thank you. Next one, are Hazer and KBR looking to move quickly to take advantage of the 45B expansion in the U.S.A.?

Yes. I saw that one come up, Simon. I think there's -- that's a very good question in terms of the U.S. We always see the U.S. and North America more generally as a target market. We're not 100% exposed to it, which is important. We've got that global diversified portfolio, as Luc highlighted. Notwithstanding, U.S. has got very cheap gas, very big industry and a very -- and deep pocket. So there is a lot of value in being -- having a position there. The 45B for those that are not familiar with it, is a part of the IRA, the Inflation Reduction Act that is potentially under threat.

And I guess one of the benefits and the advantages of Hazer is that we are already low cost. Being $1 a kilogram for hydrogen is extremely low. We would always take subsidies, but we are being low on the cost curve means that we rely significantly less on the requirement for subsidies, and being cost parity with SMR puts us in a very strong competitive position for a switching technology that relies less on subsidies. So the more interesting aspect of the U.S. side is the 45Q, which relates to carbon capture and graphite. We've got lots of ongoing dialogue with the DOE in the U.S. And my, I guess, summary of all this, it looks like that the 45Q is there to stay as a long-term policy support mechanism to methane pyrolysis. So generally speaking, U.S. target market looks like policy is shifting a little bit there, but I think it's going to have less impact on Hazer's ability to secure projects on the ground.

Thanks, Glenn. Look, I'm just going to try -- there's a couple of ones here on graphite. So I'll just sort of ask them both together and you can answer it holistically, I guess. So is graphite -- is using graphite to produce graphite in part of the plan? Do you have an update on pricing on the graphite? Are you going to upgrade it to battery grade? Have you looked into the price to make its spherical graphite? So it's -- I guess it's about upgrading.

Yes, very good. Luc, do you mind -- if you're still online, would you mind trying to address those?

Yes, definitely, definitely still online. Simon, if you don't mind, if you have the slide deck still at hand, maybe pull up Slide 19.

Yes.

What is important to emphasize is that in the ongoing marketing strategy for the graphite and especially on the back of the success with the CDP, we produced significant commercial scale samples, which have been shipped out to our project partners, potential offtake partners for graphite and other industry experts to further solidify that position, the placement potential of the graphite product. The graphene question, I'd love to focus on for a minute. We get that question a lot. It comes back into market volumes and pricing. Yes, the pricing potential for graphene is significant. Graphene has the real substantial potential to change how we use our electronic devices. So price potential, yes. The market volume, however, is close to 0 today, but no one is buying graphene at a meaningful volumes.

So longer term, yes, today, we're not focusing on it because there's no one buying it. It's only for research purposes at the moment. We get that question a lot, so I'd like to address it head on, please. Otherwise…

I think it's the pricing point, maybe the next slide, Simon, that articulates that best.

Yes. This is the testing and then the pricing point. We're conservative. We are also regularly being told that we're conservative with graphite. As Glenn mentioned, the solvent risk is a real thing, but the unique properties of Hazer Graphite are definitely a value driver, potential premium over competitive projects -- products. And then the low emissions aspect, which could also attract a premium value.

We're being conservative in our modeling. So there's pricing upside. We model in ranges between $300, $700 per ton, and we are regularly being told by some of our potential partners that also model the commercial aspect of Hazer that we're being too conservative, but that's a good place to be. There's volume pricing upside. And as I mentioned in the presentation, the volume is also really important because you can focus on premium value only. But if you saturate a market or a market segment, and the market is not going to accept that. So we need volume and pricing combined and certainty.

Yes. And I would just build on that, Luc, that's excellent. Look, we're focused on, as Luc said, high-volume, high confidence market. There's a lot of graphite that comes out of our process. But I'd like to see it as cream on the jam. Even at $300 a ton there, you can see the revenue that's generated from a project up to $45 million just at $300 a ton, which we think is a very low price for it. But I think ultimately, there's going to be a blended price for various applications that are probably going to be in excess of that. But again, market is the right place to be at the moment. It's a critical mineral. We see various industries looking to secure large volume sources of graphite. So it puts us in a very strong position.

Yes. Maybe also to add to that also in the product development space, we also have objectives in our product development workstreams where we focus on that functionization or post processing, in particular, for higher-value markets in mid- to long term. So we have current positions now and value upside in the future. Good place to be.

All right. Excellent. All right, we've got a couple more that we can get through. With Fortescue, BHP, et cetera, looking to produce green iron in Australia for export to China, is this an opportunity for Hazer to partner with these companies?

Absolutely. I think as Luc said, I'll let you jump in here, Luc. I think steelmaking and green iron is absolutely where hits every corner point of Hazer's technology. An iron ore catalyst, of course, it's a feedstock into the steel manufacturing process, cheap and affordable clean hydrogen and a carbon product. So everything fits together in steelmaking. That's the direction that steel is heading. It's responsible for 8% to 10% of the world's CO2 emissions. I think you will have seen on our pipeline chart that we're in discussions with over 5 global steelmakers. All of them see potential in a Hazer technology. So we're very excited about this as our KBR as a high priority segment, not just internationally, but in Australia. Everybody is aware that there's several big green iron and green steel projects that are being developed in the country. We are having dialogue with several of those as well. Luc, would you like to add to that?

Yes, please. Thank you. Yes, exactly. Some of the names that came up in the questions are very familiar to us. They are also very familiar with Hazer. What I maybe should refer to as also our partnership with POSCO, which is public. They chose Hazer for a reason, right? They get it. They have told us they've looked at everything. Ammonia import-export for energy, not for fertilizer, but for the energy aspect, compressed hydrogen, all the other forms and carriers, they said for them, that doesn't make economic sense, methane pyrolysis does. So that's why we're engaged in working with them. It is a very interesting sector, very interesting potential, and we know what the business case looks like on the back of the Hazer plant and also on electrolysis.

And as we've already highlighted a number of times this morning, electrolysis has an economic problem today, and Hazer can definitely make those business cases work. We're very confident. And yes, it's a matter of the market figuring that out and moving. POSCO was first mover, there'll be others in that space, no doubt.

Yes. Simon, I've just seen a couple of questions here on the paid studies. Maybe I'll just address those if it's okay.

Yes.

Andrew, thanks for your questions on paid studies. I would say they're additive to the top line in the first instance because they are obviously revenue-generating activities. We've always seen that as the business model. Hazer is a licensing model. So early paid studies is part of that model as we've talked about in the initial stages like we see in Canada at this stage. They will be an important component of it. And that's what we're trying to get into very quickly. That brings in revenues that effectively covers our costs and moves us towards FEED and then into licensing. So they're the first step in what we consider to be the licensing model that goes into a FEED study and then it goes ultimately into an FID and a license. So they're very important aspects of it, and we see that as Canada is the benchmark for that.

And they're not high cash burn because they're effectively revenue-generating activities that the client is paying for. And that's the model that KBR is very familiar with, and that's the one that we're adopting for Hazer. Jason had a question on 50,000 ton per annum plant. We'd love to be there as soon as possible, Jason, is the short answer. What we are seeing is plants getting bigger, demand getting bigger. If you think about ammonia, a 3,000 ton per day ammonia facility requires 200,000 tons per annum of hydrogen. They don't need 10,000, 20,000 tons per annum, they need multiples of that, and that's the pathway that we're on.

These are big industries that need big volumes, and that is the absolute focus for where we're heading. Of course, there's always going to be smaller projects. Our tech can be scaled up and scaled down. That's the wonderful thing about the fluidized bed reactor, and it can go down to as low as a few thousand, but up to potentially over 150,000 tons per annum. And that's a real differentiator for Hazer relative to the competitors in this space and being so advanced in that and with a strong partner that's got expertise, we're very confident that 50,000 tons is a very achievable target.

Maybe to add to that, Glenn, if I can. In the quarterly update in the written document that we issued earlier to the market earlier this week, we also included some numbers and some analysis there. If you look at our existing portfolio, 96% of our existing projects in the portfolio pipeline are bigger than 20,000 tons per annum. So that is a very, very clear signal from the market where we need to be in terms of scale. It's 20,000 tons -- almost 20,000 tons to 80,000 tons, 80,000 tons onwards. It's big and it's there.

Well, I think we will probably just finish up with one final question. What are the major catalysts investors should look out for in the coming 6 to 12 months?

It's really several things. Thank you. It's licensing commercialization, those paid studies, those feasibility studies that are going to come through and continue to validate the strength of the tech and the marketability of it. Of course, graphite is a key topic that we're actively pursuing at the moment. So there's a lot of milestones and we think catalysts around the graphite market. And grant funding and other strategic opportunities that we're pursuing are absolutely near-term catalysts for us as we drive towards getting our tech to market.

So it's a catalyst-rich 12 months. We've got that runway now. We've got that partnership. I'm absolutely confident that we will continue to deliver what we think is big inflection for this company as our tech is ready, it's proven. It's ready for licensing with a strong partner. We've got -- we're low cost over green. We've got parity with SMR and those dual revenue streams. So I would stay tuned. It's a very exciting journey that we're on, and we have a very exciting pathway ahead of us in the next 6 to 12 months.

That wraps up today's session. Glenn, would you just like to make a closing comment?

I think that's it, Simon. I think we've addressed everything. Like I say, we're on the fast track to get our technology to market. We've got the tech that operates and works. We've got the pipeline. We've got the funding, and we have the partnership to do that. And it is all about commercialized, commercialized, commercialized. I appreciate the first one is the key. In any first-of-a-kind technology, the first one is the hardest. Once we get that, I'm very confident the dominos will fall. We've got that pipeline that's ahead of us. Methane pyrolysis as an industry has shifted dramatically. We see that green hydrogen projects are falling over every day. That just continues to open up the opportunity for Hazer. Once that first project is in the bag, I'm confident that we will start to see a rerating in the stock and start to uncover and unlock that deep value that is there towards that $1 billion valuation.

Thank you.

Thank you, everyone.