News Release
PyroGenesis Announces $600,000 Sale of Patented DROSRITE(TM) Furnace System to North American Automobile Parts Manufacturer; Opens up $300+ Million Dollar Market
PyroGenesis Canada Inc. (
https://pyrogenesis.com) (TSXV: PYR), a TSX Venture 50® clean-tech company (the "Company" or "PyroGenesis") that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announced today that it has received a purchase order for the supply of its first commercial DROSRITETM Furnace System (the "System") from a North American automobile parts manufacturer (the "Client") for $600,000, which will be delivered by year-end. The contract calls for a 50% down payment and a 10% holdback. The name of the Client will remain confidential for competitive reasons.
DROSRITETM is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. DROSRITETM avoids costly loss of metal, while reducing a smelter's carbon footprint and energy consumption, providing an impressive return on investment. PyroGenesis filed a patent for DROSRITETM in 2012.
PyroGenesis' patented DROSRITETM process increases aluminum alloy recovery from dross and reduces operating costs while at the same time producing no hazardous byproducts. In comparison, competing processes have significantly higher operating costs and produce a hazardous waste that has to be disposed of at additional cost.
The Client engaged PyroGenesis earlier this year to perform a two-week pilot demonstration of the DROSRITETM process at one of its manufacturing facilities in North America. It is on the successful results of this pilot demonstration that this purchase order is based. Once the system is operational, it is expected that the Client will purchase two additional DROSRITETM systems to be installed at its other manufacturing facilities.
"With over 53 million metric tonnes of aluminum produced in 2014 by primary smelters alone, and recognizing that dross is being produced at all steps of aluminum production/transformation, the opportunity to deploy our DROSRITETM technology is vast," said Pierre Carabin, PyroGenesis' Director of Engineering. "When one factors in rising electrical costs, the DROSRITETM process provides a quick return on investment while ensuring no hazardous residue legacies which have plagued this industry for years."
"This contract provides PyroGenesis with the crucial reference plant it has been seeking," said Tom Whitton, a PyroGenesis' Business Development Leader. "We have a long list of potential customers who were waiting for such a reference plant before placing an order with PyroGenesis. Primary and secondary aluminum smelters, as well as parts manufacturers, can now all benefit from this environmentally-sound, cost effective solution."
"DROSRITETM successfully addresses a serious need within the aluminum industry, and underscores the success of our strategic plan to target high value niche problems," said P. Peter Pascali, President & CEO of PyroGenesis. "The market for our patented DROSRITETM process is in the hundreds of units, representing over $300 Million in potential demand from primary aluminum plants alone. This does not include any revenues arising from secondary and tertiary markets which could easily double this number."