PyroGenesis Canada Inc. (http://pyrogenesis.com) (NASDAQ: PYR)
(TSX: PYR) (FRA: 8PY), a high-tech Company (hereinafter referred to
as the “Company” or “PyroGenesis”), that designs, develops,
manufactures and commercializes advanced plasma processes and
sustainable solutions to reduce greenhouse gases, is pleased to
announce today, further to its Q2 2021 press release dated August
16th (Outlook section), that it has received an order to supply
four (4) high powered plasma torches together with ancillary
equipment to a client (“Client B”), for approximately $6MM. This
does not include continued after-sale services, which would be part
of a separate services agreement. Client B is a
multi-billion-dollar international producer of iron ore, whose name
will remain confidential for competitive reasons. Client B’s
objective is to reduce greenhouse gases (GHGs) by replacing their
fossil fuel burners with PyroGenesis’ proprietary plasma torches.
Client B has advised PyroGenesis that, upon the successful
implementation of the torches announced today, the subsequent
orders are expected to be for approximately 130 plasma torches.
Notwithstanding this, there is no guarantee that such orders will
be placed. The schedule to implement these future orders remains to
be determined.
Pelletization is the process in which iron ore
is concentrated before shipment, thus significantly reducing the
cost of transportation, and providing a required feedstock for
blast furnaces. In conventional technologies, the process heat is
provided by fuel oil or natural gas burners (both environmentally
damaging). The combustion of fossil fuels in the burners results in
the production of GHG, mainly CO2. Plasma torches, by contrast,
utilize renewable electricity and offer an environmentally
attractive alternative to fossil fuel burners. As previously
disclosed, PyroGenesis has the process patent to replace fossil
fuel burners with PyroGenesis’ clean plasma torches in the iron ore
pelletization industry, thereby reducing GHG emissions.
“We have achieved another major milestone as
this is our second commercial plasma torch order with a major iron
ore producer,” said Mr. P. Peter Pascali, CEO and Chair of
PyroGenesis. “In addition, Client B has advised that they would
likely be ordering approximately 130 torches upon the successful
installation of today’s order. This is particularly interesting
given that Client B does not have the largest need amongst iron ore
pelletizers. For example, we estimate that Client A, who has over
ten (10) plants, each possibly requiring up to 50 plasma torches,
has a significantly higher need. The iron ore pelletization
industry is under extreme pressure to reduce their carbon footprint
and GHG emissions. As the industry is expected to grow at 3.0% pa
from 2021 to 20271, iron ore pelletizers are looking for technology
solutions to help them meet their carbon footprint and GHG targets.
PyroGenesis’ proprietary plasma torches which significantly reduce
GHG emissions are an attractive solution as an environmentally
friendly alternative to fossil fuel burners. As sales of
PyroGenesis’ plasma torches increase, PyroGenesis should also
benefit from providing proprietary spare parts and services, which
would generate significant high-margin, recurring revenue. We
cannot overemphasize the opportunity this order presents. Although
nothing is certain with respect to success and/or future contracts,
and there are always risks as we move forward, we can now say
without a doubt that we are on the right path and things are
evolving in the right direction.”
Management has previously estimated internally
that a typical pellet plant producing 10 million metric tonnes of
pellets annually emits approximately one million metric tonnes of
CO22. The total world pellet production of 400 million metric
tonnes of pellets represents a potential market for torch sales in
excess of $10B worldwide. The world pellet industry generates about
40 million metric tonnes of CO2 every year. The use of plasma
torches running off a clean electrical grid would reduce these
emissions significantly. For reference, 40 million tonnes of CO2
represent the combined yearly emissions of 8.7 million US passenger
vehicles3.
Given recent sales, and the fact that the
torches are expected to last 25-30 years, PyroGenesis has revised
the estimated net present value (NPV) of each torch sale to be
approx. $7MM (calculated based on 20-year life). This is an
increase from previous disclosures wherein the Company estimated
that each torch sale could represent a $3MM NPV to the Company. The
original figure was based on very conservative estimates which
projected the initial torch sale to be between $1-1.3MM with
subsequent maintenance and spare parts contracts limited to 5
years.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is
a leader in the design, development, manufacture and
commercialization of advanced plasma processes and sustainable
solutions which reduce greenhouse gases (GHG), and are economically
attractive alternatives to conventional “dirty” processes.
PyroGenesis has created proprietary, patented and advanced plasma
technologies that are being vetted and adopted by multiple
multibillion dollar industry leaders in four massive markets: iron
ore pelletization, aluminum, waste management, and additive
manufacturing. With a team of experienced engineers, scientists and
technicians working out of its Montreal office, and its 3,800 m2
and 2,940 m2 manufacturing facilities, PyroGenesis maintains its
competitive advantage by remaining at the forefront of technology
development and commercialization. The operations are ISO
9001:2015 and AS9100D certified, having been ISO certified since
1997. For more information, please visit: www.pyrogenesis.com.
This press release contains certain
forward-looking statements, including, without limitation,
statements containing the words "may", "plan", "will", "estimate",
"continue", "anticipate", "intend", "expect", "in the process" and
other similar expressions which constitute "forward- looking
information" within the meaning of applicable securities laws.
Forward-looking statements reflect the Corporation's current
expectation and assumptions and are subject to a number of risks
and uncertainties that could cause actual results to differ
materially from those anticipated. These forward-looking statements
involve risks and uncertainties including, but not limited to, our
expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to
research and development, the impact of competitive products and
pricing, new product development, and uncertainties related to the
regulatory approval process. Such statements reflect the current
views of the Corporation with respect to future events and are
subject to certain risks and uncertainties and other risks detailed
from time-to-time in the Corporation's ongoing filings with the
securities regulatory authorities, which filings can be found at
www.sedar.com, or at www.sec.gov. Actual results, events, and
performance may differ materially. Readers are cautioned not to
place undue reliance on these forward-looking statements. The
Corporation undertakes no obligation to publicly update or revise
any forward- looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Neither the Toronto Stock Exchange, its
Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) nor the NASDAQ Stock
Market, LLC accepts responsibility for the adequacy or accuracy of
this press release.
SOURCE: PyroGenesis Canada Inc.
For further information please contact: Rodayna
Kafal, Vice President, IR/Comms. and Strategic BDPhone: (514)
937-0002, E-mail: ir@pyrogenesis.com RELATED LINK:
http://www.pyrogenesis.com/
1 Iron Ore Pellets Market, Industry Analysis Report, Growth
Potential, Price Trends, Competitive Market Share & Forecast,
2021 – 2027; Global Market Insights2 M. Huerta, J. Bolen, M.
Okrutny, I. Cameron and K. O’Leary, “Guidelines for Selecting
Pellet Plant Technology”, Iron Ore Conference 2015 Proceedings,
Perth, WA, July 13-15, 20153
https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle
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