- PyroGenesis Canada (TSX:PYR) is announcing a small plasma-torch contract with one of the five largest steelmakers in the world
- The partners will explore potential uses for PyroGenesis’ electric plasma torches as a heat source in the client’s steelmaking facilities
- PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions that reduce greenhouse gas emissions
- PyroGenesis stock has given back 56.73 per cent year-over-year, and 26.23 per cent over the past five years
PyroGenesis Canada (TSX:PYR) is announcing a small plasma-torch contract with one of the five largest steelmakers in the world, whose name is being kept anonymous for competitive and confidentiality reasons.
The partners will explore potential uses for PyroGenesis’ electric plasma torches as a heat source in the client’s steelmaking facilities, specifically during the production of direct reduced iron for electric arc furnaces.
As per the contract announced Wednesday, the project will begin with a 60-day feasibility study slated for later this month. Contingent on results, the client indicated that it may then proceed to a live validation study within its facilities under a separate contract.
The steelmaking giant, which is active on five continents, joins a long list of industry leaders currently considering PyroGenesis’ plasma technology as a way to decarbonize and streamline their operations. Recent examples include:
- A global mining industry supplier (April 17, 2024)
- One of the largest aluminum transformation and recycling companies in the world (April 10, 2024)
- A global aerospace firm (Sept. 19, 2023)
- A large U.S. operator of public water systems (Sept. 12, 2023)
Despite its ability to get its foot in the door with well-established industry players, PyroGenesis has yet to convert its contracts into consistent profits. Operations yielded a net income loss of -C$32.17 million in 2022, -C$38.43 million in 2021, -C$9.17 million in 2019 and -C$7.85 million in 2018, with the company’s lone profit of C$41.77 million in 2020 attributable to higher sales, as well as appreciation of its equity stake in HPQ Silicon (TSXV:HPQ), a company PyroGenesis is collaborating with to stake a claim in the more than US$2 billion fumed silica market.
Management insights
“This agreement acknowledges the continued interest in our solutions by the iron and steel industry,” P. Peter Pascali, PyroGenesis’ president and chief executive officer, said in a statement. “Combined with the advances we are making in developing a patented plasma solution for use in iron ore pelletization, the project announced today represents yet another example of the fast-growing shift taking place across multiple heavy industries, which are all being challenged to decarbonize. Steelmaking is an industry where we continue to make inroads where, obviously, the potential is enormous. This particular client is considering plasma as a heat source further down the value chain, and we are proud that our electric plasma torches are under serious consideration as part of their commitment to change in such a major process step.”
About PyroGenesis Canada
PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions that reduce greenhouse gas emissions. Its patented technologies are being vetted and adopted by multi-billion-dollar industry leaders in iron ore pelletization, aluminum, waste management and additive manufacturing.
PyroGenesis Canada Inc. stock (TSX:PYR) last traded at C$0.45 per share. The stock has given back 56.73 per cent year-over-year, and 26.23 per cent over the past five years.
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