Hazer Group's (ASX:HZR) memorandum of understanding (MoU) with M Resources is further validation of the company's proprietary hydrogen and graphite methane pyrolysis technology, according to a Friday Euroz Hartleys note.

The company on Friday said it entered into a binding MoU with M Resources, which is pursuing the acquisition of One Steel Manufacturing, owner of the Whyalla steelworks in South Australia.

The research firm believes that a successful M Resources bid and progression of a large-scale Hazer commercial plant would be a "significant" development for the company, with a valuation of a large-scale Hazer facility potentially accounting for a "material" percentage of its current market capitalization.

Euroz Hartleys maintained its speculative buy rating on Hazer Group with a price target of AU$0.76.