Hazer Group Ltd has signed a binding strategic alliance agreement with global engineering leader Kellogg Brown and Root LLC (KBR) to accelerate the commercial deployment of its proprietary methane pyrolysis technology for clean hydrogen production.
The partnership positions Hazer's technology to address the significant carbon footprint of hydrogen production in the ammonia and methanol sectors, which together represent over 50% of global hydrogen demand (approximately 54 million metric tons per year) and generate more than 500 million metric tons of CO2 emissions annually.
Under the terms of the agreement, KBR will serve as Hazer's exclusive global partner for marketing, licensing, and deploying the technology to customers in the ammonia and methanol markets, which have a combined value of US$120 billion. The companies will also collaborate on pursuing licensing opportunities in other hydrogen markets.
"KBR's proven global expertise in deploying sustainable technology solutions complements Hazer's leading methane pyrolysis technology, making us ideal partners," said Jay Ibrahim, KBR's President of Sustainable Technology Solutions. "Our market assessment and due diligence have highlighted Hazer's potential to decarbonize the global ammonia and methanol sectors."
KBR brings substantial industry credibility to the partnership, having licensed more than 260 grassroots ammonia plants since 1943. Currently, over 50% of the world's ammonia is produced using KBR's ammonia process. The company also has a strong track record in commercializing breakthrough industrial technologies, including partnerships with ExxonMobil for next-generation catalyst development and a US$100 million strategic investment in Mura Technology for plastic recycling solutions.
Strategic Impact on Hazer's Business Model
The alliance represents a transformational step in Hazer's commercialization strategy, providing a clear pathway to industrial-scale deployment of its technology. The initial term of the alliance is six years, with an option to extend based on performance metrics.
Glenn Corrie, Hazer's CEO and Managing Director, described the deal as "transformational" and "coming at a critical time when the world urgently needs affordable, low-emissions hydrogen to decarbonize legacy hard-to-abate industries."
"KBR has the scale, capability and reputation to help accelerate the deployment of Hazer's technology at industrial scale," Corrie added. "We see immediate potential in the ammonia and methanol sectors – industries with significant CO2 footprints and strong demand for clean alternatives."
The alliance is expected to significantly accelerate Hazer's business plan by adding multiple technology licensing opportunities within the next six years. Currently, Hazer has a customer pipeline comprising over 40 potential license opportunities in addition to already announced projects.
Financial and Technical Framework
The total cost of the alliance work program is anticipated to be in the range of A$3-5 million, with KBR contributing approximately A$3 million over the work program period. This arrangement helps preserve Hazer's funding position while maintaining its capital-lite licensing model.
The alliance targets securing multiple firm licensing opportunities during the initial term. Hazer retains full ownership of its existing intellectual property, and its pre-existing portfolio and opportunity pipeline are not subject to the terms of the alliance.
An incentive structure applies if KBR secures a license for the first commercial unit within three years, and the agreement can terminate if licensing performance metrics are not met.
Market Expansion and Technology Development
The partnership is expected to strengthen Hazer's market penetration into high-growth segments and regions, including North America and the Middle East. By leveraging KBR's global reach and execution capabilities, Hazer aims to position its technology as a "bolt-on" low-emissions alternative for both existing facilities and new deployments.
Beyond the current industrial applications, ammonia and methanol are increasingly recognized as preferred clean fuels for marine transport and potentially future power generation, presenting further growth opportunities for the alliance.
Following the signing of the agreement, the parties will develop a detailed activity plan. Key activities in the first 12 months are expected to include:
- Developing a process design package for industrial-scale Hazer facilities
- Preparing the sales and marketing strategy
- Developing the joint license agreement framework
- Engaging in market outreach and licensing activities
This strategic alliance represents a significant milestone in the commercialization of clean hydrogen technology, potentially accelerating the decarbonization of major industrial sectors that have traditionally been difficult to abate.
