Hazer Group says it has entered into a binding Memorandum of Understanding (MoU) with M Resources, a global commodity supply group that is pursuing the acquisition of One Steel Manufacturing Pty Ltd (OSM), the owner of the Whyalla steelworks, in South Australia.
Under the partnership, Hazer’s proprietary methane pyrolysis technology, in conjunction with KBR, has been incorporated on an exclusive basis into M Resources’ proposal for Whyalla, significantly strengthening the envisioned development of a revitalised, low carbon emissions steelmaking hub in South Australia, Hazer says.
The Whyalla steel works, a long-standing pillar of Australia’s iron ore and steel industry, is currently being offered for sale by its Administrator, KordaMentha, through a process managed by 333 Capital. M Resources has submitted a proposal that, it says, prioritises an economically viable long-term industrial renewal with a strong emphasis on carbon abatement. Hazer’s technology, producing clean hydrogen and high-value graphite from methane, is well positioned to play an enabling role in the establishment of a low-carbon emissions steel manufacturing precinct at Whyalla, it says.
Under the MoU, the parties have agreed to collaborate on the integration of the Hazer Process with the facilities at Whyalla. This includes incorporating Hazer’s clean hydrogen into the Direct Reduction Process (DRP), where hydrogen replaces natural gas to reduce iron ore pellets. In addition, Hazer Graphite will be used in the Electric Arc Furnace (EAF) to produce steel. The planned Hazer facility is expected to target large-scale commercial hydrogen production capacity with additional synergies coming from the use of an iron-ore catalyst in the Hazer Process.
Hazer will leverage its strategic alliance with KBR, whose long-standing presence in South Australia has been further strengthened by its recent selection by the Australian Government as the concept design partner for new nuclear-submarine construction yard being developed under the AUKUS partnership.
Furthermore, the parties have agreed to jointly explore the deployment of the Hazer technology in the production of low carbon emissions DRI in other jurisdictions, particularly the Middle East and the US. The parties are working together on an exclusive basis for the Whyalla project. Each party will bear its own costs associated with this agreement.
Hazer’s CEO and MD, Glenn Corrie, said: “We’ve long spoken about the potential of Hazer’s technology and its strong alignment with low-carbon emissions iron and steel production. This partnership with M Resources is a clear demonstration of the Hazer Process’s ability to integrate into steelmaking, particularly through the use of low-cost clean hydrogen for direct iron reduction and the application of Hazer graphite in electric arc furnaces.
“The opportunity to apply Hazer’s technology in conjunction with KBR at Whyalla is particularly compelling. In my recent engagements in Canberra, steelmaking was consistently recognised by key ministries as a natural fit for Hazer’s technology and Australia’s broader clean-industry ambitions. I’m pleased we are able to advance this opportunity with M Resources and support the South Australian Government in meeting its decarbonisation objectives for Whyalla.”
Matt Latimore, M Resources CEO, said: “We are very pleased to be collaborating with Hazer to incorporate their world-class methane pyrolysis technology into our Whyalla proposal. This technology further strengthens our bid for this unique asset by dramatically lowering the cost of low carbon emissions steel production. We look forward to working with Hazer on this and other opportunities.”
Hydrogen (and graphite) are emerging as pivotal enablers of low-carbon steelmaking, particularly in the DRP paired with EAFs, Hazer says. Hydrogen is increasingly being viewed as a replacement for natural gas or coal as the reductant in the DRP, converting iron ore pellets to metallic iron while producing only water vapour, dramatically cutting Scope 1 emissions. In parallel, high-purity synthetic graphite plays an important role in EAF operations, where it serves as a carburiser in the production of low carbon emissions steel.
Hazer technology is, the company says, uniquely positioned with this industry shift by converting methane emissions and/or gas into low-cost clean hydrogen and premium synthetic graphite in one efficient, low-emission process, delivering both critical inputs for hydrogen-DRP/EAF steelmaking. This dual-output capability creates a compelling technical and economic fit for the decarbonisation of this pathway.
Source: im-mining.com
