PyroGenesis Canada Inc said it has struck a deal with an existing client worth US$3 million (C$4 million) on the purchase of the first of three of the company's 10-ton Drosrite systems as it expands its aluminum processing facilities.
The Drosrite system is a process, which maximizes metal recovery from dross - a waste generated by the industry - and for aluminum firms, offers an economic and environmental solution, which eliminates landfill and reduces greenhouse gas (GHG) emissions.
The client, whose name was not disclosed, is expanding its aluminum processing facilities and expects to process an additional 30,000 tons per year of dross. It expects the facility to be operational in April 2022, noted PyroGenesis.
"This purchase order is further validation of the success we are having in introducing our environmental technologies within the aluminum industry,” said P. Peter Pascali, CEO of PyroGenesis, in a statement.
"PyroGenesis’ Drosrite offering enables smelters to not only operate more economically, but also to concurrently reduce their GHGs emissions at the same time."
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"With the receipt of the purchase order, we now have thirteen commercial Drosrite systems either in full operation, delivered, or in the process of being delivered. Once all systems are fully operational, we expect to generate recurring revenue, from ongoing maintenance and spare parts contracts."
PyroGenesis said it expects to deliver the first system within six to eight months of receipt of the down payment.
The purchase order also confirms purchasing the second system, at the same price, upon the successful startup of the client’s facility and that the facility meets the specific internal project performance/quality requirements of the expansion.
The price and timing of the third system has yet to be quantified.
PyroGenesis Canada Inc is focused on advanced plasma processes and sustainable solutions, which reduce greenhouse gases (GHG), and are economically attractive alternatives to conventional 'dirty' processes.
Contact the author at giles@proactiveinvestors.com