Pyrogenesis Canada Inc T.PYR

From the CEO site - FYI

[HARJAY]

Old post that puts a new perspective on need and value of ttorches.


@deedeemgee I'm reposting a message I shared here 16 months ago regarding the savings of avoiding carbon tax (or receiving tradeable emission reduction credits) by swapping out diesel/oil burners with plasma torches for iron ore processing. Back then, Vale was using $50/ton for their internal cost/benefit calculations. So what's NEW? The price of carbon emission credits (EU) has nearly tripled in the last year alone, currently going for about $89 euros a ton. This reflects the cost of new emissions, or the benefit of emissions reduction for any emitter within their jurisdiction. The higher the price of carbon, the more valuable the benefit of a plasma torch. Link to Carbon Prices: https://ember-climate.org/data/carbon-price-viewer/ Similarly supporting any decision to adopt a plasma torch and discard your diesel/oil burner - we have diesel prices up approx 60% over the last 5 quarters. Link to diesel prices: https://markets.businessinsider.com/commodities/diesel-price So since the below post, for any iron ore Plasma torch cost/benefit calculation - the potential BENEFIT of fuel cost savings have INCREASED by about 50% and the potential BENEFIT of carbon credits savings has TRIPLED. Original post Nov 2020: https://ceo.ca/pyr?fae205368d0c ...Keep in mind that Chalmers study used a Westinghouse torch and points out explicitly that "Most industrial plasma torches operate with an efficiency of 50 - 70 % but an efficiency of over 90 % is possible". I am comfortable assuming that the modern PYR torches are more efficient than what is used in the study. Here is an alternative way to determine the value of carbon savings, from the perspective of Client A. 1) Vale has $50/tonne CO2 internal emission accounting. https://www.vale.com/china/EN/aboutvale/news/Pages/vale-advances-on-the-climate-agenda-and-unveils-uss-2-billion-to-reduce-carbon-emissions-within-the-next-ten-years.aspx 2) PYR states in NR that "Management has estimated internally that a typical pellet plant producing 10 million metric tonnes of pellets annually emits approximately one million metric tonnes of CO2" https://apnews.com/press-release/globe-newswire/business-technology-products-and-services-advanced-materials-manufacturing-air-pollution-356ed5b6935e2ecd4e1debe2ddd702a7 3) Client A will require up to 50+ plasma torches per plant, across up to 10 plants https://www.globenewswire.com/news-release/2020/11/24/2133222/0/en/PyroGenesis-Signs-Initial-Plasma-Torch-Contract-with-Major-Iron-Ore-Producer.html 4) $50/tonne CO2 cost X 1 Million tonnes CO2 saved per plant / 50 torches per plant = $1 Million in CO2 costs saved per year per torch. 5) Peter has stated the plan is to "sell torches (with an internal target of $3MM NPV per torch)" Q5 here: https://www.globenewswire.com/news-release/2020/11/12/2125958/0/en/PyroGenesis-Provides-Update-on-its-Iron-Ore-Pelletization-Torch-Business.html 6) So, if you trust Peter, and you trust their estimates, it seems that each torch might actually have a much higher value to the clients than what the Chalmers cost comparison implies. The torches may be more efficient, fuel costs may be higher, and the Chalmers comparison itself may be misleading in terms of fuel consumption and//or power consumption in their models. At this point I like to think the proof is in the pudding after receiving 1.8MM for a single demonstration torch...
@deedeemgee I'm reposting a message I shared here 16 months ago regarding the savings of avoiding carbon tax (or receiving tradeable emission reduction credits) by swapping out diesel/oil burners with plasma torches for iron ore processing. Back then, Vale was using $50/ton for their internal cost/benefit calculations. So what's NEW? The price of carbon emission credits (EU) has nearly tripled in the last year alone, currently going for about $89 euros a ton. This reflects the cost of new emissions, or the benefit of emissions reduction for any emitter within their jurisdiction. The higher the price of carbon, the more valuable the benefit of a plasma torch. Link to Carbon Prices: https://ember-climate.org/data/carbon-price-viewer/ Similarly supporting any decision to adopt a plasma torch and discard your diesel/oil burner - we have diesel prices up approx 60% over the last 5 quarters. Link to diesel prices: https://markets.businessinsider.com/commodities/diesel-price So since the below post, for any iron ore Plasma torch cost/benefit calculation - the potential BENEFIT of fuel cost savings have INCREASED by about 50% and the potential BENEFIT of carbon credits savings has TRIPLED. Original post Nov 2020: https://ceo.ca/pyr?fae205368d0c ...Keep in mind that Chalmers study used a Westinghouse torch and points out explicitly that "Most industrial plasma torches operate with an efficiency of 50 - 70 % but an efficiency of over 90 % is possible". I am comfortable assuming that the modern PYR torches are more efficient than what is used in the study. Here is an alternative way to determine the value of carbon savings, from the perspective of Client A. 1) Vale has $50/tonne CO2 internal emission accounting. https://www.vale.com/china/EN/aboutvale/news/Pages/vale-advances-on-the-climate-agenda-and-unveils-uss-2-billion-to-reduce-carbon-emissions-within-the-next-ten-years.aspx 2) PYR states in NR that "Management has estimated internally that a typical pellet plant producing 10 million metric tonnes of pellets annually emits approximately one million metric tonnes of CO2" https://apnews.com/press-release/globe-newswire/business-technology-products-and-services-advanced-materials-manufacturing-air-pollution-356ed5b6935e2ecd4e1debe2ddd702a7 3) Client A will require up to 50+ plasma torches per plant, across up to 10 plants https://www.globenewswire.com/news-release/2020/11/24/2133222/0/en/PyroGenesis-Signs-Initial-Plasma-Torch-Contract-with-Major-Iron-Ore-Producer.html 4) $50/tonne CO2 cost X 1 Million tonnes CO2 saved per plant / 50 torches per plant = $1 Million in CO2 costs saved per year per torch. 5) Peter has stated the plan is to "sell torches (with an internal target of $3MM NPV per torch)" Q5 here: https://www.globenewswire.com/news-release/2020/11/12/2125958/0/en/PyroGenesis-Provides-Update-on-its-Iron-Ore-Pelletization-Torch-Business.html 6) So, if you trust Peter, and you trust their estimates, it seems that each torch might actually have a much higher value to the clients than what the Chalmers cost comparison implies. The torches may be more efficient, fuel costs may be higher, and the Chalmers comparison itself may be misleading in terms of fuel consumption and//or power consumption in their models. At this point I like to think the proof is in the pudding after receiving 1.8MM for a single demonstration torch...