PyroGenesis Canada Inc. (TSX:PYR) has announced a joint evaluation with a major furnace producer whereby PyroGenesis' zero-emission plasma torches will be tested in the manufacturer’s scrap remelting and holding furnaces for the aluminum industry.
The news follows last month’s business update from PyroGenesis, where it announced that it would take advantage of new opportunities in the aluminum market.
The agreement involves a computational fluid dynamics (CFD) study to gather pre-test data and evaluate plasma for use in furnaces serving the secondary aluminum market—producers who re-melt and re-sell scrap and recycled aluminum.
PyroGenesis said it has already received a purchase order for the CFD study, which is well underway with additional next steps already being planned.
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"This agreement underscores the applicability, and timing, of PyroGenesis' offerings within the aluminum industry which, incidentally, has now expanded beyond just primary aluminum producers," P. Peter Pascali, CEO and chair of PyroGenesis said in a statement. "This is particularly interesting given this agreement is, once again, with such a prominent manufacturer in the industry."
The client, who is not being named for confidentiality reasons, is one of the largest manufacturers of industrial furnaces around the world, with an almost 100-year legacy, who supplies industrial furnaces and engineering/metallurgical solutions - for virtually all process steps - to the aluminum, steel, and mining industries, PyroGenesis noted.
Pascali pointed out that aluminum producers are increasing their use of scrap aluminum in their production lines as a result of rising demand for the metal and the lower energy use and emissions of secondary scrap aluminum compared with primary production from initial mined ore.
“The sector's low-emissions claims and targets put significant pressure on ensuring that the process itself (to melt scrap and maintain molten heat) is done with as low a carbon footprint as possible,” Pascali said.
“PyroGenesis' combustion-less and emissions-free electric plasma torches are a rare technological solution that is immediately identifiable.
"As such, we look forward to announcing additional initiatives within this sector of the aluminum industry as negotiations currently taking place bear fruit," he concluded.
PyroGenesis designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions that reduce greenhouse gases. Its technology is suited for iron ore pelletization, aluminum, waste management, and additive manufacturing.
Contact the author at jon.hopkins@proactiveinvestors.com