PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) has provided an update on its Gen3 PUREVAP Quartz Reduction Reactor (QRR) pilot plant project with HPQ Silicon Inc, which shows that “process testing is moving forward,” with an engineering study to follow.
The Montreal-based high-tech company said that process testing is advancing “as expected” and represents “a key development in the overall project.”
The tests are geared to not only confirm that the technology works but also to provide input into the subsequent engineering study, which will determine among other things, the actual number of systems required for commercialization and the profitability of each.
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“The question that keeps being asked of us is what does successful testing ultimately mean to PyroGenesis?” PyroGenesis CEO P. Peter Pascali said in a statement.
“The answer is that besides the strategic investment PyroGenesis has in HPQ, the company also benefits from a royalty payment representing 10% of the client’s sales. In addition to this, the subsequent commercial systems required by HPQ for commercialization would be manufactured by PyroGenesis.”
Quartz Reduction Reactors
Pascali noted that although the current tests and the subsequent engineering study will determine the profitability of the project, they will also determine the exact number of reactors required.
“To give more clarity, at this stage both HPQ and PyroGenesis agree, given what we know today, that at least two initial reactors, each reactor capable of producing 2,500 MT of high purity silicon per year, at a build cost to HPQ of at least $20 million each, would be required,” added Pascali.
“This assumes successful testing which, although we are confident in, is not guaranteed as there are many uncertainties to be addressed before we can say with confidence that we have a successful process to commercialize.”
According to the company, the PUREVAP process is an innovative patented process that will enable the one-step conversion of quartz (SiO2) into high-purity silicon (Si) “at reduced costs, energy input and carbon footprint.”
As part of the terms of the contract with HPQ, PyroGenesis benefits from a royalty payment representing 10% of the client’s sales, with set minimums.
Quebec-based HPQ Silicon offers innovative silica, silicon (Si) based solutions and is developing a portfolio of high value-added silicon products sought after by battery and electric vehicle (EV) manufacturers.
Silicon, also known as silicon metal, is a key material needed for the decarbonization of the economy and the Renewable Energy Revolution. However, silicon does not exist in its pure state and must be extracted from quartz (SiO2) in what has historically been a capital and energy-intensive process.
With PyroGenesis, HPQ is developing the following:
- The PUREVAP Quartz Reduction Reactors;
- Through its 100% owned subsidiary, HPQ NANO Silicon Powders Inc, the PUREVAP Nano Silicon Reactor (NSiR), a new proprietary process that can use material produced by the QRR as feedstock, to make a wide range of nano/micro spherical powders of different sizes and nanowires;
- Through its second 100% owned subsidiary, HPQ Silica POLVERE Inc, a new plasma-based process that will allow a direct Quartz to Fumed silica transformation, removing the usage of hazardous chemical in the making of Fumed silica and eliminating the Hydrogen Chloride Gas associated with its manufacturing.
PyroGenesis is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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