PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (OTCQX:
PYRGF) (FRA: 8PY), a high-tech company (the “Company” or
“PyroGenesis”) that designs, develops, manufactures and
commercializes advanced plasma processes and sustainable solutions
which are geared to reduce greenhouse gases (GHG) and address
environmental pollutants, is pleased to announce that, further to
HPQ Silicon Inc’s (“HPQ” or the “Client”) press release dated
today, and the Company’s own news releases dated November 9, 2023
and January 11, 2024, the next milestone for pilot plant
development has been reached.
The Fumed Silica Reactor (FSR) technology
project is being conducted in conjunction with HPQ Silica Polvere
Inc. (“HPQ Polvere”), a wholly owned subsidiary of HPQ. With the
engineering design having concluded, major fabrication ending, and
all additional peripheral materials having been ordered, the 50
tonnes per year (TPY) FSR pilot plant is now entering the
construction phase.
The FSR pilot plant will be constructed within a
dedicated space inside PyroGenesis’ facilities, with a
custom-designed infrastructure that meets the pilot plant’s unique
ventilation, safety, and access requirements. A 4,000 sq ft
facility with a 30-foot height allowance has been allocated to
house the pilot plant, which itself has an approximate layout
footprint of 50ft by 30ft.
Fumed silica is a moisture-absorbing white
microstructure powder with high surface area and low bulk density.
Used most often as a thickening agent, anti-caking agent, and
stabilizer to improve the texture and consistency of products, the
commercial applications of fumed silica can be found in many
industries across thousands of product lines, including – but not
limited to – personal care, powdered food, pharmaceuticals,
agriculture (food & feed), adhesives, paints, sealants,
construction, batteries and automotive.
The FSR converts quartz into fumed silica (also
known as Pyrogenic Silica) in a single and eco-friendly step while
eliminating the use of harmful chemicals generated by conventional
methods.[2] The FSR, if successful, could provide a groundbreaking
contribution to the repatriation of silica production to North
America.
The FSR pilot plant is being developed by
PyroGenesis with a 50 tonne per year output capacity. In addition,
recent results (refer to the Company’s news release dated January
11, 2024) from an internal economic and technical study, which was
carried out at the request of a third-party who requested
confidentiality, confirmed the viability of, and advantages from,
the eventual scale up to a 1,000 tonne per year commercial
configuration. These advantages included potential EBIDTA margins
three times higher than the industry average of 20%, and a capital
investment 93% less than that required for building a conventional
fumed silica plant.[1]
“This development milestone initiates the
construction phase of what we believe to be a truly innovative
approach to producing one of industry’s most in-demand materials”,
said Mr. P. Peter Pascali, CEO and President of PyroGenesis.
“Conventional fumed silica processes, which rely on silicon metal
(Si) as raw material, not only have a significant carbon footprint
of around 9.5 tonnes of CO2 equivalent per tonne of fumed silica,
but also present complex process challenges which include, but are
not limited to, using hazardous materials.[2] The technology
developed by PyroGenesis for HPQ Polvere is designed to offer
significant economic and environmental advantages over conventional
manufacturers – improving profitability, but also reducing the
environmental footprint and reducing the harmful chemicals
associated with traditional fumed silica production.”
The fumed silica market, valued at US$1.3
billion in 2022, is expected to grow at a CAGR of 5% to reach
US$2.1 billion by 2032. Fumed silica sales accounted for almost 23%
of the global specialty silica market at the end of 2021. [3]
In the FSR project, PyroGenesis is the exclusive
supplier of a technology capable of using quartz (SiO2) as a raw
material to produce commercial-grade fumed silica, in a single
step. As part of the terms on the FSR project with HPQ, PyroGenesis
benefits from a royalty payment representing 10% of the Client’s
eventual sales, with set minimums. This royalty stream, can, at any
time, be converted by PyroGenesis into a 50% ownership in HPQ’s
remaining equity stake in HPQ Polvere.
PyroGenesis’ involvement in developing fumed
silica from quartz is part of PyroGenesis’ three-tiered
solution ecosystem that aligns with economic drivers that are
key to global heavy industry. High-purity silicon is part of
PyroGenesis’ Commodity Security & Optimization tier, where the
recovery of viable metals and the optimization of production to
increase output helps to maximize raw materials and improve the
availability of critical minerals. Silicon has been identified
as a critical mineral by many governments worldwide.
REFERENCE SOURCES
[1] Traditional Fumed Silica manufacturing
involves a complex three-step process. Step 1: Conversion of Quartz
to Silicon Metal (Si), with an average Capex of around US$9.38 per
kilogram of annual capacity (for reference, the PCC BakkiSilicon
Plant in Iceland cost US$300 million for an annual capacity of
32,000 tonnes). Step 2: Conversion of Si to Silicon Tetrachloride
(SiCl4), with an average Capex of approximately US$125.00 per
kilogram of annual capacity (e.g., Wacker Chemie AG Polysilicon's
US production plant cost US$2.5 billion for an annual capacity of
20,000 tonnes). Step 3: Burning Silicon Tetrachloride (SiCl4) with
Hydrogen and Oxygen to produce Fumed Silica (SiO2), incurring an
average Capex of around US$11.54 per kilogram of annual capacity
(Wacker Chemie AG's US Fumed Silica plant cost US$150 million for
an annual capacity of 20,000 tonnes). The combined Capex for these
three steps averages at US$145.92 per kilogram of annual capacity.
According to a rough order of magnitude study by PyroGenesis, our
one-step process for making Fumed Silica is estimated to have an
average Capex per kilogram of annual capacity between US$9.00 and
US$10.00, which is approximately 93% less than traditional
processes.
[2] 2012 – Executive summary: “SILICON-CHEMISTRY
CARBON BALANCE, AN ASSESSMENT OF GREENHOUSE GAS EMISSIONS AND
REDUCTIONS”, Covering the Production, Use and End-of-Life of
Silicones, Siloxanes and Silane Products in Europe, North America,
and Japan. [Pages 20 to 21] (Commissioned by Global Silicones
Council, Centre Européen des Silicones, Silicones Environmental,
Health and Safety Council of North America Silicone Industry
Association of Japan).
[3]
https://www.factmr.com/report/2301/fumed-silica-market
About PyroGenesis Canada
Inc.
PyroGenesis Canada Inc., a high-tech company, is
a proud 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.
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. 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
four (4) pillars:
1. Becoming a green low-cost (Capex and
Opex) manufacturer of Fumed Silica using the FUMED SILICA
REACTOR, a proprietary technology owned by HPQ being
developed for HPQ by PyroGenesis.
2. Becoming a zero CO2 low-cost (Capex and
Opex) producer of High Purity Silicon (2N+ to 4N) using our
PUREVAPTM “Quartz
Reduction Reactors” (QRR), a proprietary technology owned
by HPQ being developed for HPQ by PyroGenesis.
3. Becoming a producer of silicon-based
anode materials for battery applications with the assistance of
NOVACIUM SAS.
4. HPQ SILICON affiliate NOVACIUM SAS is
developing a low carbon, chemical base on demand and high-pressure
autonomous hydrogen production system.
For more information, please visit HPQ Silicon
web site.
Cautionary and Forward-Looking
Statements
This press release contains “forward-looking
information” and “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of applicable
securities laws. In some cases, but not necessarily in all cases,
forward-looking statements can be identified by the use of
forward-looking terminology such as “plans”, “targets”, “expects”
or “does not expect”, “is expected”, “an opportunity exists”, “is
positioned”, “estimates”, “intends”, “assumes”, “anticipates” or
“does not anticipate” or “believes”, or variations of such words
and phrases or state that certain actions, events or results “may”,
“could”, “would”, “might”, “will” or “will be taken”, “occur” or
“be achieved”. In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees
or assurances of future performance but instead represent
management’s current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Forward-looking statements are necessarily based
on a number of opinions, assumptions and estimates that, while
considered reasonable by the Company as of the date of this
release, are subject to inherent uncertainties, risks and changes
in circumstances that may differ materially from those contemplated
by the forward-looking statements. Important factors that could
cause actual results to differ, possibly materially, from those
indicated by the forward-looking statements include, but are not
limited to, the risk factors identified under “Risk Factors” in the
Company’s latest annual information form, and in other periodic
filings that the Company has made and may make in the future with
the securities commissions or similar regulatory authorities, all
of which are available under the Company’s profile on SEDAR+ at
www.sedarplus.ca, or at www.sec.gov. These factors are not intended
to represent a complete list of the factors that could affect the
Company. However, such risk factors should be considered carefully.
There can be no assurance that such estimates and assumptions will
prove to be correct. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
release. The Company undertakes no obligation to publicly update or
revise any forward-looking statement, 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 OTCQX Best Market
accepts responsibility for the adequacy or accuracy of this press
release.
For further information please contact: Rodayna
Kafal, Vice President, IR/Comms. and Strategic BD Phone: (514)
937-0002, E-mail: ir@pyrogenesis.com RELATED LINK:
http://www.pyrogenesis.com/
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