PyroGenesis Canada (CVE:PYR) shares soared over 60% on Monday afternoon after the company said it is expanding into Europe with its plasma-waste-to-energy systems.
The manufacturer of environmental products said it has reached an agreement to deliver its patented plasma waste-to-energy system to an undisclosed European entity, secured by a non-refundable down payment that PyroGenesis said is "significant".
The system is scheduled to be delivered in 2014, the company said, where it will be used on a commercial basis to transform industrial waste into electrical energy and usable by-products.
"This indeed is a watershed moment for the company. This sale not only expands our customer base beyond the traditional US military, but does so in a market place that is in dire need of a reliable, cost effective and sustainable waste management solution," said president and CEO of PyroGenesis, P. Peter Pascali, in a statement released earlier today.
The chief said a European deal has been a long time coming, with the company targeting the lucrative market for years now, with today's agreement marking the first sale of "many to come".
"PyroGenesis is the only plasma company that has successfully demonstrated its technology at a small scale; a technology which is readily scalable for larger waste to energy projects. To say the business potential for PyroGenesis in Europe is in the hundreds of millions of dollars would be an understatement," Pascali said.
The company delivered its first plasma waste-to-energy system in 2010 to the U.S. Air Force. Its systems are designed to transform all types of waste, without the need for pre-sorting, into useful products such as electricity and construction material, which can be worth as much as several hundred dollars per ton. This is done without generating any hazardous by-products. In many regions, the cost for destroying industrial and hazardous waste is extremely high.
PyroGenesis makes its products using a plasma gasification and vitrification technology that produces a clean synthetic gas, which is then used for power generation.
Shares of the Montreal, Quebec-based company advanced more than 60% to trade at 61 Canadian cents in Toronto. Year-to-date, its stock has more than tripled.