PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) said that its negotiation for a contract for a land-based system to destroy pollutant Perfluoroalkyl and Polyfluoroalkyl substances (PFAS) has been suspended and discontinued.
The company had won a competitive bidding process and had been selected to provide its plasma-based thermal process equipment in a two-phase project geared toward providing a land-based system to destroy PFAS. The first phase was to provide pilot testing, while the second phase was geared toward a full fabrication, furbishing and commissioning of a fully commercial land-based system.
"This decision was made because we remained firm in our decision to not compromise nor hand over, to the client, the intellectual property (IP) which we would have developed in Phase 1," P. Peter Pascali, CEO and chair of PyroGenesis said in a statement.
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"Furthermore, after continuous negotiations, it became clear that there was no guarantee that we would be granted Phase 2. Essentially, if we agreed to the client's demand, all the IP we developed in Phase 1 could be used by someone else in Phase 2. As a company who has invested decades in building its intellectual capital and assembling a team of world-leading experts, this was unacceptable to us on many levels, and not in the best interest of shareholders. It must be clear that we will always stand by our investors, and will not jeopardize long term benefits of the company, no matter how good it might at first seem in the short term, he added.
PFAS are man-made chemicals that have been widely used in consumer products in various industries for many decades. Products that may contain PFAS include non-stick cookware, stain-resistant coatings used on carpets, upholstery, and other fabrics, water-resistant clothing, cleaning products, personal care and cosmetics products and any other product that resist grease, water and oil. Because of their widespread use and strong chemical bonds and properties, which account for their persistence in the environment, PFAS are proving to be persistent pollutants that affect humans and wildlife.
"As disappointing as it may seem, the fact remains that PyroGenesis' technology and expertise won a very competitive bid to destroy PFAS," concluded Pascali. "Nothing can change that. The takeaway is that it seems that using PyroGenesis' plasma technology has a place in the destruction of PFAS. Sadly, we will not prove it out on this project, but rest assured, we are, as we speak, pursuing similar opportunities in the USA."
PyroGenesis Canada is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which 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