PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) said it has received C$1.3 million from its Client B for meeting production milestones on delivering four high-power plasma torches for trial use in iron ore pelletization furnaces.
The company also said that trials of its patented plasma torch system for Clients A and B are ongoing, with the aim of switching production of iron ore from fossil fuels to clean electric power. The names of the clients have been kept confidential for competitive reasons, according to PyroGenesis.
PyroGenesis CEO P Peter Pascali said these trials represent years of research and development, computer modelling, business case development, and factory acceptance testing. The trials have also required multi-million-dollar infrastructure expenditures by the clients, he added.
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"Our goal has always been to help companies, across multiple industries, replace all manner of fossil fuel burners with PyroGenesis' plasma torch, not just those using fuel oil or bunker fuel, but also natural gas and other fuel types," he said in a statement.
Major industry players, including in iron ore pelletization, initially started decarbonization efforts by switching to natural gas, which reduced CO2 emissions by 30%, Pascali said, adding the industry wants to go much further.
“One of PyroGenesis' iron ore clients has already targeted natural gas burners to be replaced by PyroGenesis' plasma torches,” he said, adding his company’s torches are electric and carbon-free.
Pelletization is the process in which iron ore is concentrated before shipment, which significantly reduces the cost of transportation, and provides feedstock for blast furnaces.
"PyroGenesis has gone, in a few short years, from being an unknown in the iron ore pelletization industry to being considered a technology of choice in solving a serious issue plaguing multiple iron ore pelletizers," added Pascali.
Clients A and B
Client A is a multi-billion-dollar international producer of iron ore. Pyrogenesis said it has delivered a 1-MW plasma torch system and numerous peripheral components for use in the client's iron ore pelletization furnaces. Once a site acceptance test is performed, the client will run the system for a trial period.
Client B is also a multi-billion-dollar international producer of iron ore. The four plasma torch systems will be used to replace fossil fuel-burners in an iron ore pellet baking furnace.
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 susie@proactiveinvestors.com