PyroGenesis Canada Inc (TSE:PYR) (NASDAQ:PYR) (FRA:8PY) announced it has received a cost estimate request for 36 of its plasma torches from a “multi-billion-dollar international producer of iron ore pellets.”
The company said the client, which will not be disclosed for confidentiality reasons, has the ultimate objective of reducing greenhouse gases (GHG) by replacing its fossil fuel burners with PyroGenesis’ proprietary plasma torches.
“Thirty-six (36) is too exact a number to be random. What is important today is that we can now confirm that the Client has not only identified the specific furnace to initiate a possible change-out, but has actually identified the burners to be replaced, and is now moving to the next steps,” PyroGenesis Canada CEO Peter Pascali said in a statement.
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“This is a significant development, but one that was not unexpected. We cannot overemphasize the opportunity this presents,” Pascali added.
“That is not to say that there are no risks moving forward, or that future contracts are guaranteed. However, we can say with certainty that we are continuing to conservatively tick the boxes one by one.”
PyroGenesis noted that pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation, and providing a required feedstock for blast furnaces.
It added that in conventional technologies, the process heat is provided by fuel oil or natural gas burners, which produces GHGs, while plasma torches, by contrast, utilize renewable electricity and as such offer an environmentally-attractive alternative to fossil fuel burners.
PyroGenesis is a high-tech company that designs, develops, manufactures, and commercializes plasma atomized metal powder, plasma waste-to-energy systems, and plasma torch products.
Contact Sean at sean@proactiveinvestors.com