Hazer Group (ASX: HZR) has inked a non-binding Letter of Intent (LOI) with Green Steel of WA (GSWA) for up to 85,000 tonnes of graphite over 10 years, marking its first commercial offtake agreement with a steelmaker and advancing its graphite monetisation strategy.
The deal supports Hazer's broader strategy to monetise its graphite co-product alongside hydrogen, aligning it with ongoing efforts and collaborations with industry players like POSCO and M Resources.
Hazer’s patented technology produces low-emissions hydrogen and graphite from natural gas without generating carbon dioxide as a by-product.
Roughly 3.5 tonnes of high-purity graphite are generated for every tonne of hydrogen produced in the process, creating two valuable product streams.
Low-Emissions Steel Production
GSWA is advancing the development of Australia’s first low emissions steel mill in Collie, Western Australia.
The project will produce sustainable steel rebar from recycled scrap steel for domestic and international consumption.
Construction is expected to commence in late 2026, with early operations targeted for 2028.
When completed, Collie will be WA’s first steel mill and Australia’s first new steel mill in more than 30 years.
Decarbonisation Efforts
The agreement positions Hazer's graphite as a potential input for decarbonising steel production.
The LOI is non-binding and contingent on further testing of Hazer's graphite and the securing of binding terms.
Successful qualification of graphite as a recarburiser is crucial for the agreement to become binding.
Supply commencement is set for 2030, with pricing to be linked to the landed anthracite price less 5%..
Graphite Monetisation Strategy
“This graphite offtake represent a major milestone for Hazer and a significant step forward for our graphite monetisation strategy," Hazer chief executive officer Glenn Corrie said.
"The deal is another endorsement of Hazer’s competitive advantage and direct applicability to low-emissions steel manufacturing, and builds on recent collaborations with POSCO and M Resources relating to the decarbonisation of this important sector."
"At current anthracite prices, this deal has the potential to be a long-term, high-value contract for Hazer."
"The synergies between Hazer’s technology and its products with our vision for clean steel making in WA, as well as promoting local manufacturing and processing to support Made in WA and A Future Made in Australia, are self-evident," GSWA executive director Azlan Ho said.
"We look forward to working with Hazer to undertake the remaining testing and the introduction of Hazer graphite into our clean steel production line.”
