The Western Australian government has awarded Hazer Group (ASX:HZR) AU$6.2 million in conditional grant funding under its Lower Carbon Grants Program — Gorgon Fund.
Hazer said the grant is non-refundable and was approved via the execution of a financial assistance agreement and project plan. It will use the funds to advance its commercial reactor scale-up program.
The first iteration of Hazer's reactor technology was installed in its commercial demonstration plant (CDP) in 2023, and the company completed a test program ahead of schedule in November.
The CDP reactor is capable of large-scale application of single train capacity of up to 40,000 tonnes per year.
“We gratefully acknowledge the support of the Western Australian Government and the Gorgon Joint Venture for providing the funding to progress the important next phase of technology scale-up to commercialise Hazer's novel Western Australian technology,” Hazer CEO and Managing Director Glenn Corrie said on Tuesday (December 3).
He added that the funding will substantially support the company’s 2025/2026 work program, which is centred on advancing Hazer's commercialisation strategy for use in Australia and around the world.
Subject to Hazer’s achievement of key milestones related to its commercial reactor scale-up program at the CDP, the company will be eligible to draw down the government funding via multiple tranches.
The Lower Carbon Grants Program — Gorgon Fund is a new initiative that was established in 2024 to provide funding for local innovations and projects that support decarbonisation.
It is administered by the Western Australian government and funded by the Gorgon joint venture, which is operated by Chevron Australia and includes Australian subsidiaries of Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), Shell (NYSE:SHEL,LSE:SHEL), Osaka Gas (TSE:9532), MidOcean Energy and JERA.
“The Western Australian Government is committed to diversifying and decarbonizing the state’s economy, with a target of net zero carbon emissions by 2050," said Minister Stephen Dawson.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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