The Hazer Group Ltd (ASX: HZR) share price is plummeting on news the company’s planned hydrogen and graphite production will likely be delayed.
A part needed to progress work at the companyâs Hazer Commercial Demonstration Project has critically failed during fabrication. The plant is expected to be the first fully integrated demonstration of the HAZER Process, developed by the company to convert natural gas into hydrogen and graphite using iron ore as a catalyst.
The failure is expected to delay the companyâs targeted production from the end of this year to sometime in 2023.
At the time of writing, the Hazer share price is 70 cents, 16.67% lower than its previous close.
Letâs take a closer look at the news weighing on the technology developer’s stock today.
Hazer share price plunges amid likely production delay
The Hazer share price is tumbling today on news its next step towards production has hit a major roadblock.
A part that was to be installed at the companyâs Western Australia-based demonstration plant suffered a critical failure during fabrication.
The part â a high-temperature heat-exchanger â is needed to kick-start the second phase of the plantâs testing program: Hot operating mode.
Hazer CEO Geoff Ward acknowledged the news is âvery disappointingâ and vowed to investigate the matter thoroughly.
Hazer is looking for potential remedies hidden among its contract terms and insurances.
In the meantime, it will continue working on the plantâs first phase â cold operations. That will progress over the next three to six months.
There is slither of good news in todayâs release from Hazer, however. A hot-wall reactor vessel â also needed to move the plant into hot operations â is nearly completed. The part is expected to arrive in Australia this quarter.
Todayâs news sees the Hazer share price handing back some of the gains won on the completion of commissioning at the demonstration plant last month.
The stock has fallen 38% since the start of 2022.
The post Hereâs why the Hazer share price just crashed 17% appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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