Thinkbigsti69 wrote:
@helloween I updated the last business lines outlook with the all the new informations we got since. There's a lot brewing !
Business Line Developments: Near Term (0 – 3 months)
Energy Transition & Emission Reduction
Aluminum Remelting Furnaces:
the Company has been working with different companies over the past few years towards these goals. The results from the conclusion of recent major tests, conducted in conjunction with one of these companies, have been very positive. Negotiations are underway with that client for next step deployments and/or sales and, if additional contracts are concluded, more detailed announcements on these projects may be expected during Q2 2024.
Post quarter end, in April 2024 [news release dated April 10, 2024], the Company announced the signing of a letter of intent for large-scale plasma remelting furnaces, with Constellium, one of the world’s largest aluminum transformation and recycling companies. The project consists of two phases: i) conducting feasibility studies and engineering; and ii) implementing a demonstrator plasma-heated furnace system in one of Constellium’s aluminum casthouses.
Aluminum Furnace Tests:
The Company is in advanced discussions with major aluminum companies for live furnace tests of plasma as a process heat source in melting and holding furnaces.
Steel Industry Energy Transition:
Post quarter end, in April 2024 [news release dated April 24, 2024], the Company announced the signing of a contract with one of the five largest steelmakers globally, to assess the applicability of PyroGenesis’ fully electric plasma torches for use in the client’s manufacturing facilities as a primary heat source in the steelmaking process, specifically during the production of direct reduced iron (DRI) for use in electric arc furnaces (EAF). The first step is a feasibility study to gather initial data for evaluating the potential use of plasma in the client’s factories as a process heating source for the DRI process. The duration of the study is approximately 60 days, commencing in April 2024.
Once the study is completed, and contingent on the results, the client has indicated that it may proceed to a live experimental validation study within their facilities, using PyroGenesis’ plasma torches, as per a separate to-be-negotiated agreement.
New Industry Contract for Plasma Torches:
*** confirmed to be Earthgrid by Troy Helming himself on his Netcapital forum
The client now anticipates proceeding with the purchase of a single plasma torch system in the near term, followed by one or more larger orders in subsequent quarters, dependent upon financing. While there is no guarantee this statement of work or additional ones will be completed, if successful the Company foresees the potential for a multi-phase, multi-year partnership with the client that may result in many additional plasma torch orders over the next few years.
As noted in those releases, the client was taking steps to secure financing for its overall project.
PyroGenesis has continued to be in contact with this client during their financing period, and negotiations continue with respect to possible interim studies/purchases.
Iron Ore Pelletization Torch Trials:
*** Client B confirmed to be Iron ore company of Canada owned by Rio Tinto
Client B remains committed to the trials and additional process steps are being designed and engineered to account for the client’s particular mechanical and environmental risk variables.
**** Client A confirmed to be Vale
The client previously identified as Client A, a large international mining company which has also purchased a full plasma torch system for use in trials in its pelletization furnaces, continues its plasma torch initiative at its own pace, with no recent developments to report as per project timing or completion.
Aluminum Cast House Decarbonization:
The Company is part of a tendered bid process for the testing of plasma within an aluminum cast house of a leading global aluminum company. This is unrelated to the project announcement made in conjunction with Constellium.
Mining Industry Parts Manufacturer Decarbonization:
The tests contemplated by this initial engagement should be completed by the end of the second quarter. Should the tests prove successful, it is expected that the client will move to step 2, which envisions producing a complete plasma torch-based system for use on-site to replace an existing fossil fuel burner. Such a system would include a PyroGenesis plasma torch as well as the accompanying manipulation/handling components. Step 2 would take approximately 6 months depending on the delivery time of a specific long lead item (the power supply) and generate approximately US$500,000-$1,000,000 in revenues to PyroGenesis.
High power plasma torches (higher than 4.5MW) :
The Company has subsequently been negotiating with a North American entity for the sale of a significantly higher power level plasma torch system (between 15-25MW), with a potential contract value of between $15-25 million.
Pyro green-gas :
On June 11th it signed contracts totaling $2.5 million (US1.8 million) for engineering, design, and fabrication of a thermal swing adsorption (“TSA”) system for the dehydration of pure oxygen produced from electrolyzers at the Varennes Carbon Recycling (“VCR”) plant – a large biofuel production project currently under construction in Varennes, Quebec.
A new project under advanced negotiation is with an entity involved in biogas production, with an approximate contract value of $2 million.
New Laser Cut Titanium Metal Powder Order:
a second contract from an aerospace client in Spain for the sale of PyroGenesis’ titanium metal powder for use in additive manufacturing has been signed on June 19th. The client, who placed an initial order with the Company in April 2024, is a global leader in aerospace propulsion. The client has indicated that the Company may qualify for a long-term contract following the successful completion of this contract.
5 tonne (5,000 kg) order of titanium metal powder, announced in May 2023 : The titanium powder is being delivered on a different schedule than originally anticipated. The powder is being successfully produced and delivered on an ongoing basis
Additive for Green Cement:
The Company had previously announced a project with client Progressive Planet, for the development of amorphous silica from crystalline silica, for use as an additive to replace fly ash in cement, thereby creating green cement.
Post quarter end, in May 2024 [news release dated May 2, 2024], the Company announced the results of a 28-day lab strength tests, which achieved up to 99.56% above compressive strength target for cement additive products.
The client is currently raising financing for the development of a pilot plant.
Product Qualification Process for Global Aerospace Firm:
As mentioned in the Q3 Outlook, based on information flow between the Company and the aerospace client previously announced, the Company believes that the 3-year long qualification process to approve the Company’s titanium metal powers for use by a global aerospace firm and their suppliers, will conclude in the near term.
On June 5th It has been advised by a global aerospace OEM company that PyroGenesis’ Ti64 “coarse” powder has met all the necessary requirements to be added to the client’s approved supplier list. The client (whose name is withheld at its request for confidentiality and competitive reasons) will now begin the formal process of adding PyroGenesis to its internal approved supplier list for this specific powder, a process that is expected to be completed this summer.
Of note, the Company previously confirmed that the qualification process includes both PyroGenesis’ “coarse cut” titanium metal powder, in addition to the “fine cut” titanium metal powder that had been previously discussed as undergoing the qualification process.
“FSR” Project:
Took 50% ownership of HPQ polvere on May 10th
On June 5th the 50 tonnes per year (TPY) FSR Pilot plant has begun pre-commissioning work, and all is progressing as expected for a Q3 FSR start.
Signed a LOI with Evonik on July 9th
Metal Extraction and Recovery Project:
The Company is in advanced discussions with a US-based entity who desires to utilize the Company’s plasma technology to extract valuable minerals and metal from different sources of ore. The Company has ownership of thousands of tonnes of ore. Designed as a potential three-phase project, the project values range from $50,000 for phase one (near term) to up to $5 million+ in phase three (mid term).
SPARC with New Zealand government :
The development of the project has progressed very well. The client recently informed PyroGenesis of delays to the construction of their facility that is being built to house the SPARC™ unit, pushing the expected SPARC™ delivery date to early 2025.
Business Line Developments : Mid Term (3 – 6 months)
Drosrite Factory Trials :
The Company is in discussions with multiple aluminum manufacturers to conduct paid tests of its Drosrite aluminum dross processing systems within client factories, as a first step towards potential purchase of Drosrite systems. These particular potential clients are located across Europe and the United States.
Drosrite Systems :
Separately, the Company is in various stage discussions with multiple aluminum manufacturers to purchase Drosrite aluminum dross processing systems.
Waste Remediation
Plasma Resource Recovery System (PRRS) :
*** May be Boson Energy with a Siemens partnership
The Company is in early-stage discussions for the sale of a PRRS system, to a European entity, to transform municipal solid waste (MSW) into both energy and chemical products. PyroGenesis’ PRRS system is designed to process MSW, industrial waste, and hazardous waste, transforming such into commercially valuable products. These products include gaseous fuel for electricity and heat generation, slag, aggregates suitable for construction, and recoverable metals for recycling.
This project has evolved and expanded considerably, and is now being negotiated with a total contract value of between $115 - $160 million.
Potential PAWDS Order :
The Company is in initial negotiations with a company that conducts cleanup and destruction of waste from seawater. It has also indicated interest in carrying out similar initiatives on land in remote locations. Negotiations for a PyroGenesis Plasma Arc Waste Destruction System (PAWDS), similar to the type the Company designed and built for some of the U.S. Navy aircraft carriers, are in early stage. While there is no guarantee this contract is completed, if successful the Company would be contracted for multiple PAWDS systems.