- PyroGenesis Canada, a specialist in reducing the carbon footprint of heavy industry, has received all major equipment to construct its Fumed Silica Reactor pilot plant in Quebec alongside HPQ Silicon
- Commissioning is on schedule for Q2 2024, with the companies set to benefit from the reactor’s significant cost advantages compared with legacy technology
- PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions to reduce greenhouse gases
- PyroGenesis stock has given back 64.23 per cent year-over-year, but only 27.34 per cent since 2019
PyroGenesis Canada (TSX:PYR), a specialist in reducing the carbon footprint of heavy industry, has received all major equipment to construct its Fumed Silica Reactor pilot plant in Quebec.
The plant is part of a project with HPQ Silica Polvere – a subsidiary of HPQ Silicon (TSXV:HPQ) – to produce fumed silica for a variety of markets at an initial capacity of 50 tonnes per year (tpy). Commissioning is on schedule for Q2 2024.
Fumed silica is a powder most often used as a thickening agent, anti-caking agent and stabilizer to improve texture and consistency. It can be found in adhesives, paints, sealants, and batteries, as well as products in personal care, pharmaceuticals, agriculture (food and feed), construction, the powdered food industry and the auto industry. The global fumed silica market was valued at US$1.3 billion in 2022 and is projected to reach US$2.1 billion by 2032.
The Fumed Silica Reactor, built by PyroGenesis and owned by HPQ, converts quartz into commercial-grade fumed silica in one low-carbon step without the use of harmful chemicals required by conventional methods.
An internal HPQ study based on a 1,000-tpy scenario demonstrated the reactor’s potential to generate an EBITDA margin three times higher than the industry average, while requiring only 7 per cent of the investment and 14 per cent of the emissions compared with a conventional fumed silica plant.
“We are rapidly moving forward with the fumed silica reactor pilot plant construction, as we recognize that numerous industries will benefit from what we believe is a truly innovative approach to producing one of the most in-demand materials,” P. Peter Pascali, president and chief executive officer of PyroGenesis, said in a statement.
“We are about to start the most exciting part of the project, validating, at a pilot plant scale, our substantial, unique, and proprietary advantages, the ability to manufacture commercial-grade fumed silica directly from quartz in one step for significantly less than all traditional manufacturers,” said Bernard Tourillon, president and chief executive officer of HPQ Silicon. “With commissioning scheduled to commence in Q2 2024, the time for third parties showing strong interest in our tech to stay on the sideline is getting shorter.”
Once reactor sales reach agreed-upon thresholds, PyroGenesis will be paid an annual royalty of 10 per cent of HPQ Polvere’s gross sales, with set minimums. PyroGenesis may, at any time, convert this royalty stream into a 50 per cent ownership in HPQ Silicon’s equity stake in HPQ Polvere.
To date, HPQ Silicon has signed three non-disclosure agreements with major industry players to test its fumed silica product, as announced on May 25, 2023, Sept. 14, 2023, and Oct. 18, 2023.
PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions to reduce greenhouse gases.
PyroGenesis Canada (TSX:PYR) last traded at C$0.46 per share. The stock has given back 64.23 per cent year-over-year, but only 27.34 per cent since 2019.
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