PyroGenesis Inc T.PYR

RE:RE:New Press Release - PyroGenesis Receives $1.04 Million Project Milestone Payment Under Existing $4.1 Million Contract for 4.5MW Plasma Torch with Aeronautics and Defense Client

[BCONTVentures]

Very impressive PyroGenesis' torch development during the past couple of years:

In 2020 PYR was offering a 900 kW torch, 2022 a 2.5 MW torch, 2023 a 4.5 MW torch, and now a 20 MW torch (with the same client from the 4.5 MW torch). 

(Note that this past spring when PyroGenesis attended TMS 2024 in Florida, PYR was offering torches up to 5MW in power).

PyroGenesis has some of the most plasma expertise under one roof and it is very impressive that PYR has been able to go from 900 KW to 20 MW in a couple of years.

And some great points on PyroGenesis' 20 MW torch ($27 million contract).  This client/customer is the same one who chose PYR last summer to supply them with a 4.5 MW torch (also the highest powered torch provided by PYR at the time).  Note this 20 MW torch represents a new benchmark in commercial plasma development.  And is the most powerful plasma torch ever produced.

And ToolmanTim brings up a great point (see below) regarding this $27 million contract, the recurring revenue for spare parts and maintenance will be a large amount, for many years to come.  Look at the recurring revenue that PYR has with the US Navy, in the form of maintenance, sales/support/training, and spare parts.

Keep in mind that PyroGenesis is the only foreign company to have its technology/solutions on the US Navy aircraft carriers.  The amount of due diligence that the US Navy (and US Army) does on their vendors is enormous.  And the US Navy still chose PyroGenesis.

And now we have the 20 MW ($27 million) torch contract.  This client/customer is the same one who chose PYR last summer to supply them with a 4.5 MW torch (also the highest powered torch provided by PYR at the time).  This client is a discerning aeronautical and defense contractor and it is fantastic having them place another order with PYR.  This speaks volumes to PYR's credibility and technological expertise.

Note this 20 MW torch represents a new benchmark in commercial plasma development.  And is the most powerful plasma torch ever produced.

Interesting that in the video it references the client as a major aeronautics and defense contractor with a particular expertise in jet propulsion (this is mentioned around the 1:15 minute mark).

https://www.youtube.com/watch?v=t6plkucvZ1A

And from @ordos:

@ordos From another discussion site. The client could be https://www.cubrc.org/

@ordos It would make sense, since they are involved in hypersonic flight testing on the ground. This most likely includes hypersonic weapon development, e.g. requires materials that can withstand the extreme temperature and ionization (e.g. plasma) that happens in hypersonic flight.

Very impressive CUBRC:

https://www.cubrc.org/aerosciences/

ToolmanTim wrote:I'll just say... a torch is not a stand alone device.  It will likely be the centerpiece of a very large building with all the infrastructure, electrical supply components, cooling, mechanical required to run it properly for whatever purpose they are planning.  It's equivalent to a car engine... you need the car built around it to go anywhere and this support construction is likely the driver of the 3 year timeline in the NR.  This is likely a massive project of which "install the torch" is task #784 of 1000 line items.  PYR will get paid along the way as they reach many milestones along the way... from the contract signing, through design, manurfacture milestones (of which there could be many), delivery, startup... etc. totaling $27M. Then ongoing revenue from support/maintenance/parts of such a beast... The torch itself is not $27M... likely it is just a small fraction of that.

BCONTVentures wrote: Excellent work and progress being made on this 4.5 MW torch.  Note that this is the same Client who recently contracted PyroGenesis to build the 20 MW torch (one of the most powerful torches ever produced commercially).  Congrats to Peter and Team!

From the NR:

“As I stated when we first announced this contract, the development of a 4.5 MW plasma torch system reflects the potential for PyroGenesis’ technology to be a solution for significantly more challenging high, and ultra-high, temperature process-heating needs, specifically within aerospace, defense, and certain heavy industries,” noted P. Peter Pascali, President and CEO of PyroGenesis.

“Additionally, plasma torches at these power levels positions PyroGenesis to expand its capabilities into other industries requiring high temperature technology at an appreciably higher power level (such as in the glass, cement, petrochemical, metal heating and melting industries). This need is rising as global energy transition measures, and the demand for unique high power heat applications, accelerate. The critical nature and advanced science involved in this client’s applications underscores the regard for PyroGenesis’ scientific and engineering capabilities.”

PressRelease wrote:

The Company also recently signed a second contract with this client for a $27 million hyper-powered 20MW plasma torch. MONTREAL, Jan. 21, 2025 (GLOBE NEWSWIRE) -- PyroGenesis Inc. (PyroGenesis) (https://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY), a high-tech company that designs...read article.