HPQ Silicon Inc V.HPQ

RE:RE:New interview

[BCONTVentures]

And from @cargo:

@cargoInteresting comment by Bernard, at the @30:00 he mentions that this MOU with a company located in Germany if they choose to build a FSR reactor does not effect the LOI with Evonik. This IMO has has huge implications for the major fumed silica players. I do not believe that this company is involved with the production of fumed silica. With the FSR this gives them the opportunity to jump into the fumed silica market something the major fumed silica players never had to contend with. Not only can they jump into the market with a FSR system that has the potential to make the legacy process obsolete, they will have the opportunity to make $bank$. I do not think that Evonik and the other LOI's are just going to sit around and let this take happen.

BCONTVentures wrote: Thanks to @ordos for his comments:

@ordosMy notes from the interview with Bernard (CEO of HPQ Silicon):

- We are planning the commercial production of SiOx material for battery anodes, this MOU is exactly for this purpose. Opportunity (German industrial group) has presented itself via the efforts of the business development team in Europe
- (!) The industrial group approached HPQ Silicon, not the other way around. The HPQ Silicon's European BD team has been doing lots of presentations to various groups and individuals
- The German industrial group with which MOU was signed is one of those who have spare industrial capacity (fully permitted (!)) and they are looking for projects like these to enhance their industrial parks
- HPQ Silicon is of interest as a whole, not just SiOx for battery anodes
- The German industrial group has a lot of experience operating industrial plants and in the end it may end up them operating HPQ Silicon's plants, whereas HPQ Silicon will be the technology provider with royalties. This also handles the financing of the plants, as there is a lot of financing available in Germany for these types of projects (a lot more than in Canada)
- (!) There is opportunity to establish more than just 1 of our technologies with that German industrial group. It is likely that this will be the first location for all of HPQ Silicon's plants for each of the business lines, including the first FSR commercial plant
* There a lot of "green" energy capacity in Germany and specifically in that industrial park
* All permitting is already in place and industrial capacity is available
* There is a neighbouring "green" hydrogen production plant being built / already built
* Lots of synergy
* QRR produces high purity silicon metal for SiOx production
* QRR byproduct is carbon gas which can be mixed with a neighbouring "green" hydrogen production plant's output to yield synthetic fuel
* FSR fumed silica production plant. Market for fumed silica is big in Europe
- Establishing industrial production of our materials in Germany will allow us to showcase the technologies and then "copy and paste" the plants to other locations: North America, other European countries, etc
- Possible options of how this MOU may play out
* Joint venture where German industrial group would operate the plants and HPQ Silicon will extract revenues from selling the material
* HPQ Silicon becomes technology provider and collects royalties
- Clarification on Pyrogenesis' role in HPQ Silicon's business
* Pyrogenesis builds the equipment (QRR and FSR), the German company builds the infrastructure where you put that equipment
* Pyrogenesis is not involved with SiOx enhancing equipment, post QRR, and is not involved with Metagene
* For SiOx material it will be mostly HPQ Silicon who builds the equipment, with whoever they choose to build that equipment
- Bernard: While I would've wanted some items to come to fruition in 2024, they will come to fruition in 2025, but we have done a tremendous transition in 2024. We are starting to have our own technological processes (hydrogen generator), independent of Pyrogenesis
- There will be more news on hydrogen next year and other types (!) of projects that we are working on
- (!) Our focus has always been to be the lowest cost producer of the materials, and therefore it doesn't matter whether the new US administration's focus is not going to be as "green". As counterintuitive as it sounds, "green" technologies will be better under the new US administration

@ordosKey takeaways for me:

1. First FSR commercial plant will likely be built in that industrial park in Germany, fastest route to commercial production, with everything ready to place equipment
2. HPQ Silicon's focus has always been lowest cost production of materials, e.g. it doesn't matter whether there are "green" incentives or not, they will simply be cheapest and naturally more attractive for any business
3. HPQ Silicon / Novacium are working on other projects, besides the 4 business lines already known (QRR, FSR, SiOx, Metagene)

Renaissance wrote: