The Hazer Group Ltd (ASX: HZR) share price is powering ahead today despite the broader market being sold off.
At the time of writing, the hydrogen producer's shares are swapping hands for $1.08, up 13.68%.
In comparison, the All Ordinaries (ASX: XAO) is currently 0.86% lower to 7,521.1 points.
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What's the move behind Hazer shares charging higher?
The Hazer share price is climbing after the company announced a framework to develop a low-carbon emission hydrogen production facility in Canada.
In its release, Hazer advised it has signed a memorandum of understanding (MOU) with Suncor Energy Inc and FortisBC Energy Inc.
The proposed hydrogen project will process natural gas feedstock to produce 2,500 tonnes per annum of low-carbon emission hydrogen and approximately 9,000 tonnes of synthetic graphite by-product.
Under the MOU, the three co-parties will work together to advance the project from concept to implementation. This includes conducting a feasibility study, securing funding arrangements, and concluding all binding agreements to establish the project consortium and carry out the project.
Suncor will lead the development of the project and, on completion, will operate the facility. FortisBC will supply natural gas feedstock and will purchase the hydrogen produced from the facility. Lastly, Hazer will supply the technology, lead engineering components, and manage the supply of catalyst to the project.
The feasibility study is expected to begin this month with the award of an engineering services contract.
A final investment decision (FID) is being scheduled for 2023, with operations targeted to kick off in 2025.
As part of the technology sharing program, Hazer will receive royalty payments to support the development of its technology.
The news comes after Australia and New Zealand Banking Group Ltd (ASX: ANZ) released a handbook claiming Australia can play a "pivotal role" in the hydrogen export market.
Management commentary
Speaking on the announcement boosting the Hazer share price today, CEO Geoff Ward said:
We are delighted to enter into this collaboration with Suncor and FortisBC, two leading Canadian energy companies committed to building new business opportunities in decarbonisation.
The proposed hydrogen project will materially advance the Hazer technology building on the work that we are doing at the current Hazer Commercial Demonstration Project at Woodman Point in Perth, Australia.
Canada is an excellent jurisdiction for the Hazer technology, with strong platforms and incentive programs to drive decarbonisation action, access to a well-priced low carbon intensity electrical grid and strong demand for low-carbon energy across power, heating and industrial sectors.
About the Hazer share price
Despite today's strong gains, the Hazer share price has fallen by 25% over the past 12 months. When looking at the year to date, its shares are down by roughly 7%.
Hazer presides a market capitalisation of about $172.67 million and has approximately 162.89 million shares on its books.
