Hazer Group Ltd (ASX: HZR) has announced the extension of its non-binding Memorandum of Understanding (MOU) with Mitsui & Co., Ltd., a global trading and investment firm based in Tokyo, Japan. This collaboration aims to advance the joint investigation into potential markets for Hazer’s graphite. The original MOU, established on November 16, 2022, involved an initial marketing survey to explore applications for Hazer's low-emissions graphite in the steelmaking and chemicals sectors, leveraging Mitsui’s extensive global network.

Following a positive analysis and favorable feedback from the initial market assessment, the next phase will focus on further product evaluation, including testing larger samples sourced from Hazer's Commercial Demonstration Plant (CDP). The collaboration will also include ongoing engagement with prospective buyers. The MOU's term has been extended by one year, now set to expire on November 15, 2025, with automatic yearly extensions unless either party provides notification otherwise.

Hazer’s graphite stands out as a low-emissions, high-quality product with unique properties and versatile applications. Both Hazer and Mitsui's market development analysis have identified several key segments and potential offtake opportunities, including:

• Iron and Steel Manufacturing: Hazer's graphite has identified applications in traditional blast furnaces and green steel manufacturing processes due to its unique composition and iron inclusion.

• Thermal Energy Storage: Hazer graphite’s excellent thermal conductivity and stability make it an effective medium for heat transfer and storage.

• Water Purification/PFAS Removal: The distinct properties of Hazer graphite enhance its potential for removing PFAS contaminants.

•  Other Applications: These include uses in asphalt, bitumen, and concrete production.

This market exploration allows Hazer to attract new customers, particularly in hard-to-abate industries, while also providing existing partners with insights to optimize their production methods.

In addition to jointly investigating Hazer graphite markets, Hazer and Mitsui have agreed to explore other commercial opportunities on mutually beneficial terms. This strategic partnership is integral to Hazer's commercialization strategy, facilitating access to markets for its low-emissions graphite co-product. Alongside the collaboration with Mitsui, Hazer is actively engaging with potential graphite offtakers independently, believing that this dual approach creates a robust marketing strategy with significant upside potential.

Hazer's CEO and Managing Director, Glenn Corrie, expressed enthusiasm about extending the partnership with Mitsui, emphasizing Hazer's unique technology that produces both low-cost, clean hydrogen and low-emissions graphite. He noted the growing global awareness of vulnerabilities in critical mineral supply chains, highlighting this as a distinct value proposition for Hazer's technology in the methane pyrolysis sector. Ongoing discussions are focused on establishing volumes, pricing ranges, and potential offtake agreements for their graphite.