PyroGenesis Canada Inc. (TSX:PYR, OTCQX:PYRGF) announced that it has signed a contract with a major steelmaker to evaluate the application of its fully electric plasma torches as a primary heat source in the steelmaking process, specifically during the production of direct reduced iron (DRI) for electric arc furnaces.
The company, which specializes in developing and commercializing advanced plasma processes, said the client's name has not been disclosed for competitive and confidentiality reasons.
It is an overseas entity with manufacturing facilities on five continents and is one of the five largest companies of its kind, PyroGenesis said.
The company said the client’s goal is to understand how plasma can be used during the reduction stage of iron ore, when oxygen is removed to create sponge iron for steelmaking.
P. Peter Pascali, CEO of PyroGenesis, highlighted that the agreement points to the continued interest in the company’s solutions from the iron and steel industry.
“Combined with the advances we are making in developing a patented plasma solution for use in iron ore pelletization, the project announced today represents yet another example of the fast-growing shift taking place across multiple heavy industries which are all being challenged to decarbonize,” Pascali said.
“Steelmaking is an industry where we continue to make inroads where, obviously, the potential is enormous. This particular client is considering plasma as a heat source further down the value chain, and we are proud that our electric plasma torches are under serious consideration as part of their commitment to change in such a major process step.”
The project agreement outlines the first steps for providing plasma-specific data and analysis to support the client’s goals.
The first step is a 60-day feasibility study, commencing in April 2024, to gather initial data for evaluating the potential use of plasma in the client’s factories as a heating source for the DRI process.
Contingent on the study results, the client may proceed with a live experimental validation study at their facilities using PyroGenesis’ plasma torches. This would be per a separate, yet-to-be-negotiated agreement.