PyroGenesis Canada Inc. (TSX:PYR, OTCQX:PYRGF) told investors that a recently completed internal economic and technical study produced more favorable results than were previously indicated by partner HPQ Silica Polvere, a wholly owned subsidiary of HPQ Silicon, for its Fumed Silica Reactor (FSR) technology project.
The study, which was carried out at the request of a third-party corporation, confirmed the viability and advantages of scaling up the FSR from the current 50 tonnes per year (TPY) pilot plant configuration to a 1,000 TPY commercial configuration, PyroGenesis said in a statement.
According to a release issued by HPQ: “The study unveiled its robust economic potential, emphasizing potential EBITDA margins three times higher than the industry average of 20% and a capital investment 93% less than that required for building a conventional Fumed Silica plant.”
The internal economic study indicated that the FSR will have capital expenditure (capex) of between US$9 and US$10 cost per kilogram (Kg) of annual capacity and energy consumptions between 10 –15 KWh per Kg of fumed silica. Additionally, it will have EBITDA margins of between 60% and 65% and a payback period per 1,000 TPY reactor of around 1.7 years.
“If these salient points of the internal economic study are proven out, then HPQ will be able to build facilities with significantly lower CAPEX and energy consumption while generating significant margins,” commented PyroGenesis CEO P. Peter Pascali.
“The payback of approx. 1.7 years will enable them to roll out significantly faster and with less capital. Not only does this speak for significant financial gains, but given this revolutionary plasma-based technology eliminates all harmful chemicals, it is environmentally friendly.”
The FSR converts quartz into commercial-grade fumed silica (or Pyrogenic Silica) in a single and eco-friendly step. By eliminating the use of harmful chemicals generated by conventional methods, the groundbreaking FSR approach, if successfully applied on a commercial scale, will contribute to the repatriation of silica production to North America, the company said.
“This once again reflects the potential of HPQ Polvere's fumed silica reactor which we developed and aligns perfectly with our commitment to environmental responsibility,” Pascali added.
PyroGenesis said production of the fumed silica reactor pilot plant remains on track to be completed by the second quarter of 2024.
PyroGenesis is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases and are economically attractive alternatives to conventional “dirty” processes.