- PyroGenesis (PYR) will develop a novel production process to transform quartz into fumed silica for HPQ Silicon Resources (HPQ)
- The company signed the contract with HPQ Silica Polvere, a wholly owned subsidiary of HPQ Silicon Resources
- Over the next 24 months, PyroGenesis will use its production process to develop downstream business opportunities
- The contract includes the sale of a provisional patent application and HPQ Polvere’s exclusive use of the IP in the field
- PyroGenesis retains a 10 per cent royalty on future sales
- PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and products
- PyroGenesis (PYR) is up by 3.61 per cent and is currently trading at $6.32 per share
PyroGenesis (PYR) will develop a novel production process to transform quartz into fumed silica for HPQ Silicon Resources (HPQ).
Contract details
The company signed the contract with HPQ Silica Polvere, a wholly-owned subsidiary of HPQ Silicon Resources, increasing the total value of the fumed silica project to C$5.3 million.
Over the next 24 months, PyroGenesis will use its production process, which relies on a one-step plasma-based reactor, to design, develop and manufacture downstream business opportunities.
The company intends its innovative green solution to eliminate toxic by-products from conventional processes and to reduce greenhouse gas emissions by 90 per cent.
The contract includes the sale of a provisional patent application related to the reactor for C$3.3 million and HPQ Polvere’s exclusive use of the IP in the field of fumed silica manufacturing.
The contract also includes a 10 per cent royalty on future sales, which PyroGenesis may convert into a 50 per cent ownership in HPQ Polvere at any time.
Fumed silica
Fumed silica is a white microscopic powder with high surface area and low bulk density. Its commercial applications include personal care, pharmaceuticals, agriculture (food & feed), adhesives, sealants, construction, batteries and automotive.
Demand for fumed silica is growing at a 6 per cent CAGR, with a global addressable market of US$1.5 billion in 2016 which is expected to grow to US$2.2 billion in 2022.
P. Peter Pascali, President and CEO of PyroGenesis, commented,
“This contract represents another significant milestone in our relationship with HPQ and, once again, underscores the many hidden opportunities within this partnership. This contract is another testament to PyroGenesis’ solid position as an emerging leader in GHG emissions reduction. In fact, this opportunity is a natural extension of what is being targeted by the company, and is well aligned with environmental initiatives currently taking place worldwide.”
HPQ Silicon Resources focuses on exploring for quartz in Quebec and transforming it into silicon.
PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and products.
HPQ Silicon Resources (HPQ) is up by 2.94 per cent and is currently trading at $0.70 per share.
PyroGenesis (PYR) is up by 3.61 per cent and is currently trading at $6.32 per share as of 9:35 am ET.