Hazer Group (ASX:HZR) said the independently verified conclusion of 12 months of operations at its commercial demonstration plant, along with the submission of other reporting deliverables, led to the completion of a key progress milestone under the Australian Renewable Energy Agency funding agreement and facilitating the drawdown of AU$500,000, according to a Monday ASX filing.

The commercial demonstration plant achieved more than 1250 hours of continuous operation, substantially de-risking the scale-up and commercialization strategy, the filing said.

If the firm achieves further milestones, it will receive further AU$1 million of funding under the agreement between 2025 and 2026.

Its shares fell 4% on market close on Monday.