Hazer Group (ASX:HZR) achieved a milestone under the Australian Renewable Energy Agency (Arena) funding agreement, allowing it to draw down AU$500,000 in non-dilutive grant funding, according to a Tuesday Australian bourse filing.

Deliverables for the milestone included the completion of the commercial-in-confidence business case validating the economics and returns of the firm's proprietary technology for both plant owners and Hazer as a technology licensor, the filing said.

The company expects to secure another AU$500,000 in Arena funding in early 2027, subject to the achievement of the remaining milestone deliverables, per the filing.

Hazer Group's shares fell past 2% in recent trading on Tuesday.