The Hazer Group Ltd (ASX: HZR) share price rocketed 20% higher in morning trade today as the company released its report for the second quarter of FY21.
Shares in the small cap hydrogen technology company surged to a high of $1.88, demolishing its previous record high in the process. The Hazer share price has since retreated to $1.74 at the time of writing, up 11.9%.
The company aims to commercialise its 'Hazer process' in order to produce hydrogen more efficiently. The Hazer process is a low emission hydrogen and graphite process. It enables the effective conversion of natural gas and methane using iron ore as a catalyst.
What's driving the Hazer share price?
In today's release, the company reported a positive second quarter performance, saying its key focus remains the execution of its commercial development project (CDP). A successful execution of the CDP will demonstrate the benefits of Hazer's technology to potential clients.
Hazer said it has made significant progress during the quarter, despite challenging conditions due to COVID-19. It has obtained the various permits required for its operations. As a result, site preparation is set to begin in the first quarter of the 2021 calendar year.
Regarding the company's cash flow, Hazer reported cash reserves of $28.8 million at the end of the quarter. The company generated $8.7 million, with more than $10 million additional money coming in from various grants. This includes the Australian renewable energy agency grant, totalling $9.4 million.
About the Hazer share price
The Hazer share price has seen a phenomenal rise in the last 12 months, lifting from 42 cents to its current price of $1.85. This represents a 270% increase.
As mentioned in its report:
This growth is coming as the global hydrogen market continues to gather pace. The market has a favourable macro environment with national roadmaps and strategies now translating into investment targets, funding programs and regulatory changes.
Hazer is seeing a significant increase in interest in its technology from international companies across a wide range of applications driven by a desire by end-users to de-carbonise operations.
Around the globe other hydrogen technology companies have also been performing well, with the likes of Plug Power Inc (NASDAQ: PLUG) gaining 1,655% in the last year.
