The company told the market this morning the commitments came from institutional and sophisticated investors, with the placement closing early due to strong demand and upside from its original $6 million target. 

The placement will result in the issue of 20 million new fully paid ordinary shares at an issue price of 4.2c to raise the $8.4 million, representing a 26.3% discount from its last traded price of 5.7c. 

Settlement of the placement is expected to occur next week with the issue and trading of shares to commence on June 18. 

It has also executed a non-binding term sheet for a $6 million senior secured loan facility from Mitchell Asset Management, with the parties now progressing binding documentation for it. 

The cash, alongside the almost A$10 million in conditional funding from the Australian Renewable Energy Agency, will finance its flagship Hazer Process Commercial Demonstration Project, designed as a 100 tonne per annum hydrogen production facility.

The plant will use Hazer's patented process, which uses waste biogas and iron ore as feedstock to create hydrogen and graphite, trapping the resulting carbon in the graphite.

Graphite has potential for a number of industrial applications, such as the production of lithium-ion batteries, water purification and advanced materials.

The hydrogen meanwhile will be fuel cell grade, capable of being used as a low emissions transport fuel. 

"We are delighted by the strong support that has been shown for Hazer in this raising and welcome our new shareholders to the company," Hazer chairman Tim Goldsmith said. 

"With the completion of this funding package, Hazer is strongly positioned to construct, commission and operate our Commercial Demonstration Plant," he said. 

The project has been making leaps and bounds in recent months, despite the COVID-19 restrictions, with the company signing a gas supply agreement and collaboration deed with Water Corporation last month to supply biogas to the plant for three years, beginning in 2021. 

Final investment decision on the project is expected in a matter of weeks. 

Hazer shares fell 14.9% today, closing at 48.5c.

It has a market cap of $64m