Hazer Group (ASX:HZR) fiscal first-half results showed maturation, with small but growing revenues and reduced cost base, and, the company is set to take advantage of the decarbonization pressures the hydrogen industry faces, according to a Monday note by Euroz Hartleys.

On Monday, the company reported revenues from ordinary activities of AU$2.3 million for the fiscal first half, up 46% from last year and its operating costs were down 12% to AU$7.5 million, driven by lower commercial demonstration program expenditure and corporate costs.

Euroz Hartleys highlighted that the global hydrogen market, valued at 97 million tonnes in 2023, remains dominated by traditional uses like refining, chemicals, and steel manufacturing.

This resulted in over 900 million tonnes of carbon dioxide emissions (CO2) in 2022, accounting for 2.3% of global CO2 emissions, Euroz added.

With increasing pressure to reduce emissions, Euroz expects rising demand for low-carbon hydrogen. Gas company's Linde's $2 billion investment in a blue hydrogen complex, indicates mounting decarbonization efforts.

Euroz Hartleys believes Hazer Group is well-positioned to capitalize on the hydrogen industry's decarbonization push.

Hazer's proven technology, ready for integration into existing infrastructure, offers a cost-effective alternative to blue and green hydrogen, the investment firm said.

Backed by tier-1 partnerships and technical validation, Hazer also benefits from a diversified earnings upside through its graphite byproduct, the firm added.

Euroz Hartleys maintained Hazer Group's speculative buy rating and its price target of AU$0.57.

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