PyroGenesis Canada Inc announced that a factory acceptance test (FAT) for the use of its plasma torches in iron or pelletization has been scheduled to be completed with Client A. This FAT is scheduled to be conducted between February 2 and February 14, 2022.
Client A is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will remain confidential for competitive reasons, the company said.
The client, which has committed to reducing its GHG emissions, has over 10 plants, each possibly requiring up to 50 plasma torches. PyroGenesis has the only patented process in the iron ore pelletization industry designed to replace “dirty” fossil fuel burners with environmentally-friendly plasma torches, thereby greatly reducing emissions.
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“We are pleased to announce today that we are now entering the acceptance test phase with Client A; a client with a need for up to 500 torches,” said P. Peter Pascali, CEO of PyroGenesis. “Once we have completed the testing, we will not only announce the outcome, but we expect to have sufficient data to provide further visibility on the expected timeline moving forward.”
PyroGenesis’ plasma torches greatly reduce emissions by replacing dirty fossil fuel burners with clean plasma torches. PyroGenesis estimates that worldwide pellet production of 400 million metric tonnes consumes between 8000-12000 MW of energy annually.
The Montreal-based company estimates that the potential addressable market is over $10 billion, assuming a one-to-one replacement of fossil fuel burners with an estimated 10,000 1MW plasma torches, based on an assumed cost per plasma torch of approximately $1.5 million.
“Completing the FAT will be a significant milestone in our ultimate goal of providing PyroGenesis’ plasma torches to iron ore pelletizers worldwide, in their quest to reduce GHGs,” Pascali said. “We are proud that, despite the challenges facing companies these days (supply chain issues, labor constraints, and general covid related issues), both teams that are working on this project, ours and our client’s, have managed to keep the project on track and meeting all requirements to date.”
He added: “This progress speaks volumes with respect to our expertise in understanding the unique requirements of multi-billion-dollar clients, and the dedication we have to ensure ultimate success.”
Contact Ritika at ritika@proactiveinvestors.com