PyroGenesis Canada Inc. (TSX:PYR, OTCQX:PYRGF) said its fully electric plasma torches are to be evaluated by a major global mining parts manufacturer to see if they are suitable to replace fossil fuel burners in its metal cast houses.
According to PyroGenesis, the client, a billion-dollar entity with operations spanning five continents, is recognized as one of the world's largest manufacturers serving the mining and defense industries.
The agreement remains confidential due to competitive reasons, PyroGenesis said in a statement.
This collaboration aims to assess the potential of PyroGenesis' plasma torches to replace existing burners in the client's legacy systems, which currently emit significant amounts of CO2.
By deploying PyroGenesis' technology, the client seeks to advance its energy-transition and decarbonization objectives while addressing emissions challenges prevalent in the industry.
The initial phase of the engagement involves conducting tests with PyroGenesis' plasma torches, with completion expected within the next 10 weeks.
Successful results from this phase could lead to the implementation of a complete plasma torch-based system on-site, replacing fossil fuel burners.
The agreement includes a “unique use aspect,” P Peter Pascali, CEO of PyroGenesis told shareholders.
“Although initially small in value, this contract has the potential to have our plasma torch offering being considered as a solution to a particular carbon emitting process that seems to be plaguing the industry as a whole. The fact that our engineering team is confident that they will substantiate the first step is also very encouraging,” Pascali said.
He added that the company has received several requests asking it to consider plasma as a way to decarbonize legacy processes.
The initial test is set to conclude within 10 weeks, with potential success leading to the implementation of a complete plasma torch system on-site to replace fossil fuel burners.
That could generate nearly US$500,000 to $1 million in revenues for PyroGenesis over a six-month period, the company estimated.