PyroGenesis Canada Inc said its Steam Plasma Arc Refrigerant Cracking System has been acquired as “the core technology” for New Zealand’s national hazardous refrigerant collection and destruction initiative by the government-mandated Cool-Safe organization.
Cool-Safe, previously known as The Trust for the Destruction of Synthetic Refrigerants, is a product stewardship organization (PSO) established by the New Zealand government in 1993 and is mandated to play a significant role in New Zealand’s goal of reducing its greenhouse gas emissions by 35% by 2035. This will be achieved by implementing a 90% reduction target for hazardous refrigerants, noted the Montreal, Canada-based high-tech company.
“When we originally announced this contract, we were limited in what we could reveal…We can now confirm that our client is a very large, government-mandated organization serving the whole of New Zealand, and is comprised of not just one, but nine advanced materials/chemical trading companies working together,” PyroGenesis CEO P. Peter Pascali said in a statement.
READ: PyroGenesis chosen by trading house to supply SPARC refrigerant waste destruction system
“As with most PSOs, these companies have been given the responsibility to oversee, in this case, the safe removal and disposal of the hazardous products they either manufacture or distribute. The nine companies within the Cool-Safe organization are significant players and include four that are large publicly traded multinationals and six that are 50+ years old.”
Investors reacted to the news, sending shares up 4.3% to CA$1.43 on the Toronto Stock Exchange and up 3.9% to US$1.06 on the Nasdaq in morning trade.
In addition to the nine large materials/chemical companies and distributors that are central to the Cool-Safe organization, the initiative serves all commercial businesses across New Zealand by way of a buy-back program which started in October of 2022. The program rewards companies who deposit their end-of-life refrigerants and refrigerant-based mechanicals at a Cool-Safe collection site.
Growing demand
PyroGenesis noted that consumers will also be informed about the steps they must take regarding hazardous refrigerants and the move is likely to lead to a large uptake in the program, and a growing need for the safe destruction capabilities offered by PyroGenesis’ SPARC system.
“With the shift from voluntary to regulated handling of these waste streams, scheduled for 2024, combined with the relaunch and marketing of the Cool-Safe initiative, the collection and safe disposal of hazardous refrigerants in New Zealand, in our opinion, is only going to continue to grow,” said Pascali.
Until now, the organization had been sending collected refrigerants to a plant in Australia for destruction.
“With this purchase and construction of PyroGenesis’ SPARC system, New Zealand will have its own on-shore capabilities for the safe destruction of refrigerants. We are proud to play a key role in New Zealand’s national initiative, and we look forward to a long partnership over the next several years as the project expands as expected,” he added.
Over $6 million contract
The project has a production-to-delivery timeline of 18 months, and the client has indicated it may need additional systems. The first system is contracted for $6 million, not including ongoing after-sales support, noted the company.
Interestingly, PyroGenesis’ patented SPARC system is based on the technology platform originally developed by the company for the US Navy and a US Air Force base. It uses inexpensive steam as the plasma-forming gas to generate a hydrolysis reaction that destroys refrigerants, leading directly to significantly reduced operating costs (versus more expensive gases) and cleaner operations with no incineration.
Powered by electricity, the use of the SPARC system reduces the carbon footprint, while eliminating ozone-depleting substances. It also destroys chemicals such as chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), halons, and perfluorocarbons (PFCs) which are potent greenhouse gases.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive
-- UPDATED with stock activity, and contract size