Plasma Torch Systems Delivered to Client B; Moves Directly to Site Acceptance Testing
MONTREAL, Jan. 26, 2023 (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 advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG), provides today an update on its iron ore pelletization torch business line following recent inquiries from investors.
Further to its press release dated September 14, 2021, PyroGenesis is pleased to announce the successful delivery of four (4) 1-MW plasma torch systems to a major international iron ore producer, Client B (the “Client”), for use in the Client’s iron ore pelletization furnaces – a key upstream process in the steelmaking industry. With the completion of this delivery, Client B now has all the necessary components related to the Company’s plasma torch systems on site at one of their key integrated iron ore mining and processing locations. This allows for the installation and trials (also known as site acceptance testing or “SAT”) to proceed at the Client’s discretion. Despite the ongoing supply chain challenges, the completion of these trials is expected by the end of Q2 2023.
In addition, PyroGenesis is pleased to report that the value of this contract has increased by approximately $500,000 as a result of additional modifications requested by the Client during manufacturing. Total value of the project now exceeds $6.5 million. As the delivery milestone associated with this payment has been met, a payment of approximately $2.1 million is expected to be received within the next few weeks.
Separately, the Company is also pleased to confirm that the previously announced1,2 planned trials of its plasma torch system with another client, Client A, continue to advance. Client A informed PyroGenesis that, despite the Client’s own operational delays, all objectives remain the same, and the trials will be going ahead as designed. As noted previously, Client A’s trials using an active iron ore pelletization furnace will be conducted based on their own engineering, facility, and personnel readiness.
Client A and Client B (collectively, the “Clients”) are conducting these trials at full purchase cost to them, not as equipment loans or free trials. The names of the Clients – both multi-billion-dollar international producers of iron ore who are undertaking the testing of plasma torches to replace fossil fuel-burners in iron ore pellet baking furnace – have been kept confidential for competitive reasons.
“With the delivery of the four completed plasma torch systems to Client B, we now have PyroGenesis’ plasma torch systems in the hands of two of the largest, most influential companies in the global iron and steelmaking value chain,” said P. Peter Pascali, CEO and Chair of PyroGenesis. “Both companies have made it known publicly that reducing greenhouse gases in the upstream sections of the iron and steel industry is both imperative but proven to be challenging to find areas where improvements can be made; modification of the fossil-fuel burning furnaces is one of the only areas upstream where a meaningful impact can be made. While interim measures such as natural gas or hydrogen offer minimum improvement over diesel fuel, the limited impact on CO2emissions (an approximate 28% to 30%3 reduction in CO2from the existing fuel oil approach) dictates that these temporary measures must eventually give way to fully electric alternatives. Plasma torches – for which PyroGenesis owns the global patent for use in iron ore pelletization – provide just such a complete electric step towards these companies’ upstream decarbonization goals, hence the importance of these plasma torch trials for both Clients.”