PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) provided an update on its strategic engineering partnership with HPQ on the PUREVAP Quartz Reduction Reaction (QRR) pilot plant and the Fumed Silica Reactor (FSR) project.
The provider of advanced plasma processes said as part of the terms of both projects with HPQ, PyroGenesis benefits from a royalty payment representing 10% of the client’s eventual sales, with set minimums.
"We believe the QRR is a major step forward for PyroGenesis and HPQ as providers of a technology that could help shape the future of silicon production," PyroGenesis Canada CEO Peter Pascali said in a statement.
"The market's enormous growth potential signals not only profitability but the protection of a key critical mineral and a brighter, more sustainable future," he added.
PyroGenesis noted that the QRR pilot plant, which was designed and built to transform lower-purity quartz (SiO2) into high-purity silicon (Si) in a single step, uses electric high temperature plasma arc that reduces production costs and significantly lowers energy consumption with a smaller carbon footprint compared to traditional methods.
It added that further testing of the enhanced system will conclude with a silicon pouring step, which is scheduled within the next few weeks.
After a successful pour, PyroGenesis and HPQ will determine the number of PUREVAP QRR systems required to construct a full commercial plant and thereafter will move towards full commercialization, according to the company.
As well the FSR, which converts quartz into fumed silica (Pyrogenic Silica) in a single and eco-friendly step, will eliminate the use of harmful chemicals generated by conventional methods and, if successful, will help contribute to the repatriation of silica production to North America.
In a major step towards commercial-scale production, PyroGenesis said it has successfully deployed the FSR on a laboratory scale, resulting in the milestone production of fumed silica.
Pascali noted that a pilot plant is scheduled to start operations in the second quarter of 2024.
And, with respect to the FSR with HPQ Silica Polvere Inc (HPQ Polvere), a wholly owned subsidiary of HPQ, the royalty stream, can, at any time, be converted by PyroGenesis into a 50% ownership in HPQ Polvere.
PyroGenesis Canada is a high-tech company and is a leader in the design, development, manufacture, and commercialization of advanced plasma processes and sustainable solutions that reduce greenhouse gases and are economically attractive alternatives to conventional processes.
Contact Sean at sean@proactiveinvestors.com