- Hazer has chosen Primero as the preferred engineering contractor for a new demonstration plant
- As part of a new Early Contractor Involvement (ECI) contract, Primero will take up initial design activities for the proposed Hazer Commercial Demonstration Plant (Hazer CDP)
- Hazer is focused on commercialising a low-emission hydrogen and graphite production process named the Hazer Process
- Both companies saw shares spike over 10 per cent today
Hazer Group and Primero Group have struck a deal today, with Hazer choosing Primero as the preferred engineering contractor for a new demonstration plant.
Hazer inked an Early Contractor Involvement (ECI) contract for the WA-based engineering and construction company today. This means Primero will take up initial design activities for the proposed Hazer Commercial Demonstration Plant (Hazer CDP).
Hazer is focused on commercialising a low-emission hydrogen and graphite production process named the Hazer Process. Through this process, Hazer’s technology can use iron ore to convert natural gas and other feedstocks into hydrogen and graphite.
The Hazer process captures the carbon content of the natural gas feedstock in the form of solid graphite, rather than being converted into carbon dioxide. Essentially, this means hydrogen and graphite can be produced at a lower cost and reduce a user’s environmental footprint.
Primero is an engineering group with offices and fabrication facilities in Perth, WA. It provides design, fabrication and construction services to a variety of companies in the minerals, energy and infrastructure industries.
Hazer CEO Geoff Ward said the company is delighted to step into the engineering phase of the Hazer CDP with an established group like Primero.
“We believe Primero are an excellent fit for the capabilities we need to deliver the CDP and I am looking forward to the Hazer and Primero teams working closely together to deliver a successful project,” Geoff said.
The ECI phase of production is planned to be finished in November this year. Hazer will then have the opportunity to move forward into an Engineering Procurement Construction (EPC) contract.
Investors in both Hazer and Primero seem to be pleased with the new contract, with both companies enjoying a premium share price of over 10 per cent today.
Hazer shares a currently up 10.61 per cent and trade for 36 cents each in a $35.5 million market cap. Primero shares peaked at 46 cents each just after midday AEST, and are now up 8.64 per cent to trade at 44 cents a piece in a $65.84 million market cap.