PYR news
ORIGINAL: PyroGenesis Announces Request for Cost Estimate from Major Iron Ore Producer for Thirty-Six Plasma Torches
2021-06-03 15:10 ET - News Release
MONTREAL, June 03, 2021 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (https://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), a high-tech company (hereinafter referred to as the “Company” or “PyroGenesis”), that designs, develops, manufactures and commercializes plasma atomized metal powders, environmentally friendly plasma waste-to-energy systems and clean plasma torch products, is pleased to announce today that further to its press release dated November 24th, 2020, it has received a request for a cost estimate for thirty-six (36) plasma torches from a major iron ore producer (the “Client”). The Client is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will not be disclosed for confidentiality reasons, and whose ultimate objective is to reduce greenhouse gases (GHG) by replacing their fossil fuel burners with PyroGenesis’ proprietary plasma torches.
As previously disclosed, PyroGenesis has the process patent to replace fossil fuel burners with PyroGenesis’ clean plasma torches in the iron ore pelletization industry, thereby reducing GHG emissions.
“Thirty-six (36) is too exact a number to be random,” said P. Peter Pascali, CEO and Chair of PyroGenesis. “What is important today is that we can now confirm that the Client has not only identified the specific furnace to initiate a possible change-out, but has actually identified the burners to be replaced, and is now moving to the next steps. This is a significant development, but one that was not unexpected. We cannot overemphasize the opportunity this presents. That is not to say that there are no risks moving forward, or that future contracts are guaranteed. However, we can say with certainty that we are continuing to conservatively tick the boxes one by one.”
Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation, and providing a required feedstock for blast furnaces. In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging). The combustion, in the burners, of fossil fuels results in the production of GHG, mainly CO2. Plasma torches, by contrast, utilize renewable electricity and as such offer an environmentally attractive alternative to fossil fuel burners.
Management has estimated internally that a typical pellet plant producing 10 million metric tonnes of pellets annually emits approximately one million metric tonnes of CO21. The total world pellet production of 400 million metric tonnes of pellets represents a potential market for torch sales in excess of $10B worldwide. The world pellet industry generates about 40 million metric tonnes of CO2 every year. The use of plasma torches running off a clean electrical grid would reduce these emissions significantly. For reference, 40 million tonnes of CO2 represent the combined yearly emissions of 8.7 million US passenger vehicles2.