Hazer Group Limited provided the update on the progress, cost and schedule of the Hazer Commercial Demonstration Project (CDP or Project) being constructed at Water Corporation's Woodman Point Water Recovery Facility. During the last quarter, it completed civil site preparations, awarded contracts for reactor and high- temperature heat-exchanger materials and fabrication, and took delivery and commenced processing the CDP iron-oxide catalyst. Significant engineering effort has been dedicated to ensuring the materials selection and fabrication specifications of the reactor and associated high-temperature equipment is appropriate and meets required safety criteria. This exercise has been substantial as it progress this first-of-kind design. Fabrication of equipment modules is progressing at various supplier sites, with equipment packages beginning to be delivered to Australia and stored ahead of construction and installation through 2H 2021. The Hazer CDP is experiencing significant cost pressures. Covid-19 related disruptions to global supply chains for equipment and increased freight costs have had a substantial impact, including restricting the number of suppliers willing to meet the technical requirements to supply the Project. Additionally, rapidly increasing costs in Western Australia for labour, equipment, and services due to the strong resource industry has increased costs for engineering, construction, bulk materials, and services. These pressures have resulted in final pricing for many packages and services being above that indicated when setting the original Project budget in June 2020. In addition to these external factors, cost increases due to higher than anticipated engineering requirements to optimise detailed design, materials specification, and fabrication methods for the Hazer reactor have been incurred, with knock-on effects to the design of associated equipment and piping. This engineering work has now been substantially completed, and expects all design work to finish this quarter. Hazer now expects a final Project cost of $20 ­ $22 million, an increase of 17% over previously advised costs and 29% over the original June 2020 FID Project budget. Hazer remains fully funded to complete the CDP. Site installation and construction activities will commence in July, and maintain a target construction completion date of the fourth quarter of 2021. The impacts of Covid-19 globally are impacting the schedule with small delays compounding through the supply chain and impacting the overall completion and delivery dates for key components of the Project. It is now targeting Project commissioning to commence in December 2021, one month later than previously indicated, subject to achieving delivery as scheduled of remaining equipment packages and completion of the specialist materials manufacture and fabrication without further disruption.