Hazer Group (ASX:HZR) signed a non-binding memorandum of understanding with Kemira for an initial term of one year, to evaluate and explore commercial opportunities for its proprietary methane pyrolysis technology, according to a Thursday Australian bourse filing.

The firms will collaborate to study the technical and commercial feasibility of deploying Hazer's technology and products in Kemira's operations. Kemira will conduct testing of Hazer low emissions carbon in water treatment, as well as an assessment of the feasibility to integrate Hazer's technology in industrial applications.

If the assessments prove to be positive, the firms agreed to enter into talks about commercial collaboration.

Hazer's shares rose 2% in recent trading on Thursday.