Hopefully this process flow that I put together helps to explain the basic process and value chain. The economics of the process are not really so much based on any individual product but more so on the sum of the outputs being higher than the sum of the inputs. This is much the same in any industrial process such as methanol or ammonia production, in the Hazer case the margins should well exceed those available to methanol or ammonia producers due to the fact that both the carbon and hydrogen streams carry value. As for infrastructure a large scale plant should cost around $1.25m /ktpa of production which is based on the CAPEX cost of building a SMR plant. Smaller scale plants will come at a higher $/ktpa but on the flip side will also target higher value product streams. Vehicle hydrogen retails for around $12000/t and battery grade graphite that MIN are chasing is anticipated to sell for around $6000/t. This relationship between scale and value will suit Hazer as they scale from retail tons to the end goal industrial kiloton applications
HZR Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
(20min delay)