Hazer Group (ASX:HZR) delays hydrogen demonstration plant commissioning to early 2022.
Hazer Group (HZR) has pushed back the completion date for its Western Australian commercial demonstration plant (CDP) amid overseas mill and shipping disruptions.
The hydrogen company said this morning the COVID-19 pandemic is continuing to throw a spanner in the works for the CDP’s development as it impacts China’s mill operations.
Meanwhile, Hazer said Hurricane Ida — though it is in the United States — was also causing some shipping delays between China and Australia.
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The company said the fabrication of the main reactor shell for the CDP had been delayed thanks to changes in the production schedule for the selected mill.
In light of all this, Hazer said it now planned to commission the project during the first quarter of 2022 as opposed to the previous target date of December 2021.
Still, Hazer CEO Geoff Ward said the company is pleased with the progress of the facility, especially regarding main civil works and mechanical construction.
Geoff Ward, Hazer CEO.
The Hazer reactor and furnace is a complex, first-of-kind equipment package which is being made more challenging by the current operating environment with significant disruptions to supplier operations and freight schedules due to the global COVID-19 pandemic, which has impacted the delivery time of high-temperature materials for the reactor and heat exchangers.
“We will continue to monitor these issues and do all we can to mitigate the impacts on the project.”
Importantly, CDP commissioning delay does not come with any further budget increases; Hazer said it maintained its revised guidance from June this year, expecting the facility to cost between $21 million and $22 million to build.
Hazer is developing the CDP at the Woodman Point Water Recovery Facility in WA.
Once developed, the plant will be used to showcase Hazer’s namesake hydrogen production process that is supposed to produce economically competitive hydrogen but with 50 per cent lower carbon emissions than conventional methods.
Shares in Hazer Group have slipped 1.89 per cent in early trade following delay, trading at $1.04 each at 10:25 am AEST. The company has a $151 million market cap.
Higlights:
- Hazer Group (HZR) pushes back the completion date for its WA commercial demonstration plant (CDP) amid overseas mill and shipping disruptions
- The company says COVID-19 continues to impact China’s mill operations, while Hurricane Ida is causing shipping delays between Australia and China
- In light of this, Hazer says it now expects to commission the project during the first quarter of 2022 instead of during December this year
- Nevertheless, today’s CDP commissioning delay does not come with any further budget increases
- Shares in Hazer Group are down 1.89 per cent today, trading at $1.04 each at 10:25 am AEST
Hazer Group (ASX:HZR) delays demonstration plant commissioning to early 2022, September 3, 2021
