- PyroGenesis (TSX:PYR), a sustainability technology stock, reports a €1.63 million (C$2.4 million) plasma torch contract with Norwegian aluminum and renewable energy provider Norsk Hydro ASA
- The client will test PyroGenesis’ plasma torch technology as a potential replacement for fossil fuel in its aluminum casthouse furnaces
- PyroGenesis designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions that reduce greenhouse gases and manage waste at attractive economics
- PyroGenesis stock has added 20 per cent year-over-year and 57.89 per cent since 2020
PyroGenesis (TSX:PYR), a sustainability technology stock, reports a €1.63 million (C$2.4 million) plasma torch contract with Norwegian aluminum and renewable energy provider Norsk Hydro ASA.
Norsk Hydro, founded in 1905, is active in 42 countries, and generated US$18.3 billion in revenue in 2024. It entered aluminum production in the 1960s and has gone on to become one of the largest in the world.
The client will test PyroGenesis’ plasma torch technology as a potential replacement for fossil fuel in its aluminum casthouse furnaces. The trial, set to take place at a test center in Sunndal, Norway, is part of a broader goal of net-zero emissions across its aluminum supply chain by 2050.
Norsk Hydro will met aluminum under the project at its Sunndal aluminum plant by 2026. The plant is the largest primary aluminum plant in Europe, generating more than 400,000 tons of aluminum, 500,000 tons of casthouse products and 80,000 tons of anodes per year.
According to Monday’s news release, the project is “one of the first in the world to use plasma to melt aluminum on an industrial scale.”
Leadership insights
“Norsk Hydro is not just one of the largest aluminum companies in the world, but it is also one of the few companies that others in the industry look to for guidance and inspiration,” P. Peter Pascali, president and chief executive officer of PyroGenesis, said in a statement. “We are proud to be partnering with a leader who is committed to decarbonizing and achieving net zero CO2 emissions in the entire aluminum value chain. Our torch capabilities are the reason PyroGenesis is increasingly becoming the go-to plasma solution company for the biggest and most influential names in heavy industry as they seek solutions to meet their global energy transition and decarbonization strategies. As noted in our recent press release dated February 10, 2024, recent results have confirmed that a solid business case can be made to transition to all-electric PyroGenesis plasma torches from an energy savings perspective alone, and any positive environmental impact (such as CO2 reduction) would be just icing on the cake. In addition, with the reduced energy requirement as a result of using PyroGenesis torches, companies can now contemplate building smaller furnaces (for the same capacity), reducing costs further for the same project. Last but not least, the reduced aluminum melting time means companies can raise production levels, generating higher and faster output. Increasing production rates by up to 30 per cent from the same production footprint implies processing more output, which in turn directly impacts revenues and profitability. As I said, the advantages from using PyroGenesis’ plasma torches create a solid business case apart from the concurrent positive environmental impact of doing so. It is for these reasons that we say that PyroGenesis is working to make sustainability sustainable.”
“We are exploring the application of renewable energy sources in production steps that traditionally rely on fossil fuels. Plasma technology offers a way to electrify casthouse operations using the same renewable energy that powers our primary smelters. If we succeed with the pilot project at Sunndal, it will not only impact our operations but also has the potential to bring change to the aluminum industry and other hard-to-abate sectors worldwide,” added Per Eilert Vierli, senior vice president of Hydro Aluminium Metal.
About PyroGenesis
PyroGenesis designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions that reduce greenhouse gases and manage waste at attractive economics.
PyroGenesis stock (TSX:PYR) opened with a gain of 1.69 per cent trading at C$0.60 per share. The stock has added 20 per cent year-over-year and 57.89 per cent since 2020.
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(Top photo of the Sunndal primary aluminum plant: Anders Vindegg and Norsk Hydro)
