Carbon Capture and..... ?, page-19

There are plenty of successful CCS projects internationally, but not every used oil and gas reservoir is suitable. There can be geochemical issues interfering with flow for example, and I suspect that may be the issue with Gorgon - but I am only guessing. But given the success elsewhere, I wouldn't write sequestration off. In fact, successful blue hydrogen production with CCS where it is cheap and effective would be great to kick start the hydrogen economy at scale which is good for all of us. There's plenty of future demand for all technologies. In the long run green hydrogen will probably be dominant though as costs drop. Some time before that happens though.

But your question about why gas producers aren't approaching Hazer is a good one. We've seen a broad view of the economics of Hazer's process which look really positive even at relatively low graphite prices, and we've seen pilots suggesting it's likely to be commercially and technically viable. The outstanding question seems to be how to optimise the graphite value more than whether the graphite has value.

But I have suspected for some time that the deal with MIN is more restrictive than appears. Not only do we not see approaches from gas producers, we also see no initiatives outside of biogas. While I see great benefits in the biogas approach, not least of which are the additional carbon credits, this shouldn't stop Hazer pursuing natural gas opportunities with other people's money. So finance should not be the constraint here.

It would be good to better understand this part- as an investor it's really hard to understand the full potential value without this knowledge. While I see likely value at many multiples of today's MC just from biogas potential on the proving of the CDP, the natural gas opportunities should add multiples again, but we're in the dark on that. Possibly there are good reasons, and it appears we have to wait for it to play out. But we shouldn't be missing the big bucket of government money that is destined for hydrogen, energy storage and CCS, so they need to get a move on while free money is being dished out.