Ann: Hazer Group and Water Corporation Agree MOU, page-148

Hazer approached Watercorp with this proposal, so it is up to Hazer to provide the full analysis and design before Watercorp accept it. Normally Watercorp would have done the background engineering themselves and gone out to tender, so the process would be a lot faster because of that.

Having said that, the Woodman Point energy recovery system is a debacle, they lift untreated methane from the digesters and pump it straight into generator sets; no drying, no removal of contaminants at all. this means that the engines need to be completely rebuilt every two to three years, and top end replacements occur far more frequently than that. Whoever put that system together should have been shot.

So Hazer has to design a full filtering system, specific to the digester output, as well as well as the reactor system … that's what takes the time. Once they have this, they have to present the business case to Watercorp for acceptance, then do the install.

Watercorp is not really interested in the electricity they produce from the digester (the cost is too high with the constant maintenance on the sets), they just want to get rid of the waste ... Hazer can do this for free as far as Watercorp is concerned, so the MOU provides a framework for the engineering, acceptance of the proposal and the offtake of 'waste' products - Hazer gets the hydrogen and graphite.

So in reality, 12-18 months seems a reasonable time frame to produce such a win-win situation.