Hazer Group (ASX:HZR) signed a memorandum of understanding with Continual Renewable Ventures to evaluate sustainable aviation fuel and renewable diesel opportunities in Australia, according to a Tuesday filing with the Australian bourse.

The non-binding agreement represents "Hazer's first step into Australia's emerging clean fuels industry," the company said.

The memorandum has a term of two years and involves collaboration across technical workstreams on a non-exclusive basis, with each company bearing its own costs.

Continual Renewable Ventures plans to develop a sustainable aviation fuel and renewable diesel production facility in the Kwinana region of Western Australia, which will use canola and hydrogen as feedstock. Hazer is capable of delivering the low-emissions hydrogen feedstock required for production in Kwinana, it said.