Accelerated Commercialisation Boosts ASX Clean Energy Stocks

Team Veye | 03-Dec-2024

With a distinct competitive advantage, these two ASX stocks are surging in a decarbonising push. These potential growth companies are

Hazer Group Limited (ASX: HZR)

Hazer Group Limited (ASX: HZR) announced that a $6.2 million of conditional grant funding has been awarded by the Western Australian Government under the Lower Carbon Grants Program – Gorgon Fund. The non-refundable grant has been approved subject to the execution of a Financial Assistance Agreement and Project Plan which are substantially complete. Hazer is proud of our Western Australian heritage and excited to be recognised for delivering an innovative climate change solution that will significantly reduce emissions and deliver a decarbonisation pathway to heavy industry. This non-dilutive funding substantially supports Hazer’s 2025-2026 work program focused on advancing our commercialisation strategy and enables us to expedite the delivery our unique technology to our growing customer base in Australia and world-wide.

The Hazer Group is among growing companies to invest in having made significant progress in FY24, achieving a key milestone with the commissioning and first production at its Commercial Demonstration Plant (CDP) in Perth. This achievement showcases the scalability and commercial readiness of Hazer’s proprietary methane pyrolysis technology, which simultaneously produces clean hydrogen and graphite. Over the year, the CDP has undergone extensive testing, including over 450 hours of continuous operation and 1,250 cumulative hours, demonstrating high plant reliability and efficient methane conversion. These results solidify Hazer’s position as a leader in clean hydrogen production technologies. In parallel, Hazer has advanced the engineering of its next-generation reactor and heat exchange systems, designed to support scaling up to commercial production levels exceeding 20ktpa of hydrogen. Installation and testing of the upgraded reactor are planned for 2025, providing critical validation data for larger-scale deployments.

Hazer is one of the top growth stocks in the sector, as its global commercial portfolio is gaining traction, underpinned by increasing interest in methane pyrolysis as an alternative to costlier green hydrogen production. Notably, Hazer has signed a binding Project Development Agreement (PDA) with FortisBC in Canada for a 2,500tpa hydrogen plant, marking a 25x scale-up from the CDP. The PDA ensures revenue from Early Project Development Work and FEED activities, reinforcing the company's financial sustainability. In Japan, feasibility studies with Chubu Electric and Chiyoda confirm the technical and commercial viability of a Hazer facility near Nagoya. Hazer has also expanded partnerships with Mitsui, ENGIE, and POSCO, signaling broader interest in integrating its technology into applications like low-carbon steel production. Challenges surrounding the cost and transport of green hydrogen have highlighted the attractiveness of Hazer’s technology. Methane pyrolysis offers a cost-competitive and scalable pathway to clean hydrogen, with potential plant capacities of 50,000–100,000tpa increasingly demanded by prospective partners across Australia, North America, Asia, and the Middle East.

Looking ahead, Hazer aims to develop 10 projects over the next decade, leveraging its strong R&D foundation, robust intellectual property, and strategic global partnerships. With a growing pipeline and proven operational milestones, the company is well-positioned to capitalize on decarbonization opportunities and deliver long-term value to shareholders.

SciDev Limited (ASX: SDV)

SciDev Limited (ASX: SDV) experienced significant growth in FY24, posting a 22% increase in Group revenue, with all business units contributing to this success. The standout performer was the Water Technology segment, which saw an impressive 88% growth. This growth came from strategic investments made in previous years, such as expanding the team and equipment fleet, as well as securing large contracts, including with Acciona Construction. The Chemical Services segment also contributed to the company's strong performance by increasing gross margins, particularly in the Energy Services area, through a higher sales volume of proprietary products. The company’s EBITDA grew by 117%, and its operating cash flow continued to be positive for the fifth consecutive half-year, ending the financial year with $9.4 million in cash.

The company is one of the ASX growth stocks. Its rapid growth trajectory over the years is clear, having increased revenue from $2.2 million in 2018 to $109.2 million in FY24. This success has been underpinned by the growing acceptance of SciDev's technologies in its key markets. For example, the company’s proprietary products, like CatChekTM in the oil and gas sector, have gained traction, helping drive revenue. The company’s efforts to expand into international markets, particularly in North America and Europe, have also started to pay off, with early-stage revenues in these regions. Notable successes include the development of FluorofIX™ technology, which has garnered interest in the U.S. market, and the formation of the Nuoer-SciDev joint venture, which is designed to expand SciDev’s global mining presence.

For FY25, SciDev is optimistic about sustaining its growth momentum. The company’s strong financial position, supported by a healthy balance sheet and a $10 million finance facility with Westpac, provides flexibility to invest in growth opportunities. Key areas for future expansion include increasing market share in the oil and gas sector through its proprietary products, expanding its presence in international mining markets with MaxiFlox®, and capitalizing on the growing demand for PFAS treatment solutions in Europe and North America. SciDev's diversified portfolio of water-focused technologies and its continued focus on organic growth position it well for another strong year.

Source: Company’s Report

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