HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ)
(OTCQX: HPQFF) (FRA: O08), a technology company
specializing in green engineering processes for silica and silicon
material production, is pleased to provide shareholders information
on the significant environmental benefits of the PUREVAPTM Quartz
Reduction Reactor (QRR) process currently being developed in
collaboration with technology provider PyroGenesis Canada Inc.
(TSX: PYR) (NASDAQ: PYR) (FRA: 8PY) (PyroGenesis).
As the GEN3 QRR pilot plant testing progresses toward commercial
validation, HPQ can now highlight a distinctive environmental
advantage of its proprietary QRR process. This advantage, combined
with recently acquired intellectual property from PyroGenesis, will
enable HPQ to achieve more than just the milestone of zero CO2
emissions in silicon metal manufacturing—it will also incorporate a
carbon recycling step that should also yield an additional
significant reduction in feedstock usage.
These developments will further enhance the sustainability and
efficiency of the QRR production process.
"By modernizing the production of high-purity Silicon, our QRR
process has the potential to transform a century-old industrial
process, known for its significant CO2 emissions, into a carbon
credit-generating solution," stated Bernard Tourillon, President
& CEO of HPQ Silicon. "Amidst the global focus on reducing
carbon emissions and achieving sustainability goals, the
advancements of HPQ hold immense significance in driving the
transition towards cleaner and more environmentally responsible
silicon production."
Silicon Manufacturing is Currently the Largest Emitter
of CO2 Among Metals And
Non-Ferrous Metals
In traditional silicon metal manufacturing, a carbothermic
process involving the reduction of Silica (SiO2) using carbon
sources (Coal, Coke, or Charcoal) as reductant at high temperatures
> 1,800o C in Open Electric Arc Furnaces (OEAF) is used to make
Silicon metal (Si). The carbothermic process alone results in 5
tonnes (t) of CO2 emissions per tonne (t) of silicon produced [1].
This makes Silicon Metal manufacturing the largest emitter of CO2
among all metals and non-ferrous metals, based on a tCO2/t product
basis, as per the Intergovernmental Panel on Climate Change (IPCC),
a United Nations body focused on climate change research [2].
Currently, traditional silicon metal manufacturers have only one
option to reduce their carbothermic carbon footprint, and this
involves replacing fossil-based carbon with an organic carbon
source [3]. While adopting this alternative allows manufacturers to
effectively mitigate a part of their overall carbon footprint by
offsetting the CO2 emissions associated with the organic carbon
source, it will never allow them to produce zero CO2 emissions
silicon metal.
PUREVAPTM QRR Zero
CO2 Silicon Metal Advantage: A
Closed Electrical Arc Furnace Design
The QRR, by design, is a Closed Electric Arc Furnace (CEAF) with
the ability to operate under controlled atmospheric conditions.
This innovative furnace enables the semi-continuous feeding of
Silica (SiO2) and a carbon reductant, facilitating the production
of 3N+ silicon in a single step. Notably, the QRR's design
eliminates air infiltrations within the reactor, ensuring that the
CO gas (“Co(g)”) generated during the carbothermic reaction remains
unoxidized. Consequently, the QRR produces a gas composition
enriched with CO(g), which can be readily captured for further
utilization.
The recently acquired IP from PyroGenesis encompasses a process
that involves capturing the CO(g) stream emitted by the QRR. This
captured CO(g) is subsequently converted back into a solid carbon
form, creating the potential for its reuse in generating the
carbothermic process for silicon production once again.
By harnessing the unique CO(g) sequestration ability of the QRR
in combination with the utilization of an organic carbon source,
HPQ is poised to achieve the production of Zero CO2 Silicon Metal.
This innovative approach enables carbon-neutral silicon metal
production and holds the potential for generating carbon credits.
According to management estimates, the QRR potential carbon credits
should be between 1.5 tCO2/t product basis and 2.6 tCO2/t product
basis [4].
HPQ intends to commercialize its Zero+ CO2 Silicon Metal under
the brand name SILICIUMX.
Zero Nitrogen Oxides emission, another environmental
advantage of the QRR process
The size, complexity, and open-top nature of Open Electric Arc
Furnace facilities contribute to the heating of atmospheric
nitrogen, causing it to enter a reactive state and releasing highly
reactive and poisonous Nitrogen Oxides (NOx) gases. However, the
unique design of the QRR inhibits air infiltrations within the
reactor, effectively preventing the formation of NOx. This
environmental advantage is another positive aspect of the QRR
process.
Quantifying the Environmental Benefits of the QRR: A
Zero CO2 Emission
Process
HPQ's QRR Zero CO2 emission silicon metal manufacturing can have
a profound environmental impact, as exemplified by its significance
in key markets:
- Market research
indicates a need for 1 million tonnes of additional silicon metal
production capacity in the coming decade, exacerbating the carbon
emission issue [5]. By fulfilling just 25% of this demand with QRR
systems, worldwide CO2 emissions could be reduced by 1.25 million
tonnes annually, equivalent to removing 278,163 gasoline-powered
passenger vehicles from the road yearly [6], or >50% of the cars
produced in Canada in a year.
- Canada's annual
silicon metal production of approximately 50,000 tonnes [7] could
see a remarkable reduction of 206,000 tonnes in annual carbon
emissions by adopting QRR systems [8].
- With an annual
silicon metal production of around 310,000 tonnes in the United
States [9], replacing old legacy plants with QRR systems could lead
to a substantial reduction of 1.55 million tonnes of CO2 emissions
per year [10].
- European countries,
with an annual silicon metal production of approximately 450,000
tonnes [11], have the potential to achieve an impressive reduction
of 2.25 million tonnes of CO2 emissions annually by transitioning
to QRR systems [12].
These figures, not including the QRR carbon credit potential,
highlight the significant environmental impact that can be realized
by implementing QRR systems in these key markets.
Quantifying the Economic Impact of the QRR: A Zero
CO2 Emission Process
Silicon metal manufacturing incurs significant carbon taxes in
numerous markets, calculated based on the per-tonne price of CO2
emissions. The deployment of each 2,500t/y system utilizing the
innovative and proprietary design of the QRR process, along with
the recently acquired Intellectual Property (IP) from PyroGenesis,
will result in substantial cost savings.
HPQ management has calculated the Net Present Values of carbon
tax savings for each 2,500t/y system over a 25-year period to
estimate the potential cost savings. This analysis considers a
projected 5% compounded increase in the carbon tax and applies
discount rates of 7.5%, 10%, and 12%. The results provide an order
of magnitude for the potential financial benefits in different
markets.
- For a Quebec-based
operation, with a carbon tax of $27 per tonne of CO2 emissions
[13], the Net Present Values of potential savings range from $4
million (12% discount rate) to $6.5 million (7.5% discount
rate).
- In a ROC (Rest of
Canada) based operation, with a carbon tax of $50 per tonne of CO2
emissions [14], the Net Present Values of potential savings range
from $5.1 million (12% discount rate) to $8.5 million (7.5%
discount rate).
- For a European-based
operation, with a carbon tax of 90 € ( C$126) per tonne of CO2
emissions [15], the Net Present Values of potential savings range
from 9.3 million € (or C$13 million) (12% discount rate) to 15.3
million € € (or C$21 million) (7.5% discount rate).
These significant potential carbon tax savings highlight the
substantial financial advantages and environmental benefits of
adopting the QRR, a Zero CO2 Emission Process, in these
markets.
HPQ Acquisition of New Intellectual
Property From PyroGenesis
HPQ has acquired a new intellectual property
from PyroGenesis for $3,600,000. This significant IP pertains to a
"Low Carbon Emission Process for the production of Silicon," which
holds the potential to achieve zero CO2 emissions and introduce a
circular carbon usage approach through carbon recycling. By
incorporating this IP, HPQ strengthens its QRR patent portfolio and
gains a unique competitive advantage over traditional silicon metal
manufacturers.
Under the agreement, the parties are currently
negotiating a complementary agreement focusing on the research and
development phases necessary for implementing this IP. This
collaboration will propel HPQ's capabilities in implementing the
low carbon emission process, further solidifying its position as an
industry leader in sustainable silicon production and PyroGenesis’
position as a world leader in innovative industrial
technologies.
SOURCE
- Gudrun Saevarsdottir, Thordur Magnusson & Halvor Kvande.
(2021) Reducing the Carbon Footprint: Primary Production of
Aluminum and Silicon with Changing Energy Systems. Journal of
Sustainable Metallurgy, 7, 846-857.
- Bernstein L, Roy J, Delhotal KC, Harnisch J, Matsuhashi R,
Price L, Tanaka K, Worrell E, Yamba F, Fengqi Z (2007)
Industry. In: Climate change 2007: Mitigation. Contribution of
working group III to the fourth assessment report of the
intergovernmental panel on climate change. Cambridge University
Press, Cambridge, UK and New York, USA
- FerroQuébec Inc. Empreinte carbone du silicium métal,
Usine de Port-Cartier, Rapport d’empreinte carbone, 25 mars
2015, Ernst & Young, Groupe – Changements climatique et
développement durable.
- Since the report listed under point [3] is related to a Quebec
based operations, management used the life cycle carbon footprint
numbers found in table 5.2 on page 30 of the Ernst & Young
report and from TM-2016-708 on the QRR Carbon footprint to
calculate two different reference scenarios that would incorporate
the effect of the QRR CO(g) capture capability. Under HPQ reference
scenario #1, (using FerroQuebec data with a carbon capture
efficiency of 95%) HPQ could generate a carbon credit of 2.6 tCO2/t
product basis. Under HPQ reference scenario #2, (using the
information from PyroGenesis TM-2016-708 on the QRR Carbon
footprint, with a carbon capture efficiency of 95%) HPQ could
generate a carbon credit of 1.5 tCO2/t product basis.
- Data compiled from information found in the presentations made
by CRU International Limited (“CRU”), a world leading metal market
research firm, during their Silicon Market Outlook conferences of
November 2018, November 2020, and October 2022.
- The 1.25 M t in annual CO2 emission reduction was calculated by
management which took 25% of 1 M t of additional demand of Silicon
described under point [5] and multiplied it by 5, which is the
quantity of CO2 emissions per t of silicon produced described under
point [1]. (250,000 t * 5). The estimate of the equivalent number
of ICE passenger vehicles reduced from the roads was calculated by
using the EPA Greenhouse Gas Equivalencies Calculator.
- Data for silicon production in Canada from the web
site www.statista.com
- Annual reduction of CO2emissions for Canada was calculated by
management at 206,000 t by multiplying the 50K t of annual
production by 4.12, the CO2emission number for Canada as per the
information found in the report described under point [3].
- Data for silicon production in United States from the
web site www.statista.com
- Annual reduction of CO2emissions for United States was
calculated by management at 1.55 M t by multiplying the 310K t of
annual production by 5.
- Data for silicon production in Europe extracted from the
following quote from CRU analyst Jorn de Linde that estimates
that Europe accounts for 13%-15% of global silicon production, or
about 3 million tonnes.
- Annual reduction of CO2emissions for Europe was calculated by
management at 1.55 M t by multiplying the 410K t of annual
production by 5.
- Quebec Government: The Carbon Market: Auctions
- Government of Canada: The Federal Carbon polluting pricing
benchmark
- The Wall Street Journal article, April 18, 2023, “World’s
First Carbon Import Tax Approved by EU Lawmakers”
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 three 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 m2and
2,940 m2R&D and 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
About HPQ Silicon
HPQ Silicon Inc. (TSX-V: HPQ) is
a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer.
HPQ is developing, with the support of
world-class technology partners PyroGenesis Canada
Inc. (TSX: PYR) (NASDAQ: PYR) and NOVACIUM
SAS, new green processes crucial to make the critical materials
needed to reach net zero emissions.
HPQ activities are centred around the following
five (5) pillars:
1) Becoming the only
Zero CO2Emission, low-cost (Capex and Opex)
producer of High Purity Silicon (2N+ to 4N) using our
proprietary PUREVAPTM“Quartz
Reduction Reactors” (QRR) being developed by
PyroGenesis.
2) Becoming a
producer of micron size High Purity Silicon (3N & 4N) powders
for high value applications.
3) Working to become
the first producer of nano silicon materials from High Purity
Silicon chunks using our
proprietary PUREVAPTMNano
Silicon Reactor (NSiR) being
developed by PyroGenesis.
4) Becoming a green
low-cost (Capex and Opex) producer of Fumed Silica using our
proprietary FUMED SILICA REACTOR being
developed by PyroGenesis.
5) Developing a small
and compact process for the on-demand production of green hydrogen
via hydrolysis of Silicon and other materials, in cooperation with
Novacium SAS.
For more information, please visit HPQ Silicon
web site.
Disclaimers:
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 Company'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 Company with respect to future events and are subject
to certain risks and uncertainties and other risks detailed from
time-to-time in the Company's ongoing filings with the security’s
regulatory authorities, which filings can be found at
www.sedar.com. Actual results, events, and performance may differ
materially. Readers are cautioned not to place undue reliance on
these forward-looking statements. An investment in the Company is
speculative due to the nature of its business. The ability of the
Company to carry out its plans depends on obtaining the required
capital. Investors must rely upon the ability, expertise, judgment,
discretion, integrity and good faith of the management and Board of
the Company. The Company 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 TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This News Release is available on the
company's CEO Verified Discussion Forum, a moderated social
media platform that enables civilized discussion and Q&A
between Management and Shareholders.
Source: HPQ Silicon Inc.For further
information contact: Bernard J. Tourillon, Chairman,
President, and CEO Tel +1 (514) 846-3271Patrick Levasseur, Director
Tel: +1 (514) 262-9239Email: Info@hpqsilicon.com
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