Hazer Group (ASX:HZR) entered into a binding alliance agreement with US-listed Kellogg Brown and Root for the commercial deployment and licensing of its proprietary methane pyrolysis technology, according to a Monday Australian bourse filing.

The company expects the total cost of the alliance work program to be in the range AU$3 million to AU$5 million, of which KBR will contribute about AU$3 million over the work program period.

Under the deal, the companies will collaborate on the upscaling, marketing, and licensing of the Hazer technology for commercial deployment.

The initial term of the partnership is six years with an option to extend, subject to the achievement of performance metrics.

The companies agreed to work together on the development of a design package for Hazer facilities targeting hydrogen capacities of more than 50,000 tonnes per annum, the filing said.

Hazer Group's shares jumped nearly 13% in recent Monday trade.