Hazer Group (ASX:HZR) said the Hazer-KBR Alliance entered into a binding deal with a Japanese power generation and energy utility for a paid study to evaluate the firm's methane pyrolysis process in a power generation portfolio in Japan, according to a Monday Australian bourse filing.

The alliance will deliver a pre-feasibility study evaluating the integration of the process with the customer's power generation portfolio, assessing hydrogen production capacities of 30,000 tonnes-per-annum and 300,000 tonnes-per-annum. It is expected to be completed by year-end.

Hazer's revenue for the initial phase is expected to be around AU$65,000.

Its shares rose 3% in recent trading on Monday.