Reposting to combat false narrative posted. This was about 7-8 weeks ago PYR CEO made comments in this regard:
Hello Peter,
Someone on Stockhouse is saying that even though the torches that will be used for iron ore pelletization are easy to install, they require a great deal of electricity. He claims that that is what is holding back these large companies. i.e., most of them don't have access to all that electricity.
Without revealing any secrets, can you say whether or not the torches do, in fact, require a major amount of electricity?
Thanks in advance for your answer. Snowdrift (see below)
Here's the post in question:
am a long who is working on adding to his position in the current situation.
I have some experience in the iron ore pelletizing business.
My reading of the current situation of torches for pelletizing is this:
The first multiple torch order will be for client B, 4 torches and will happen in the current quarter.
Explain that:
1) internal approvals require detailed estimates and that does take some time
2) these torches may be easy to install but they are hungry for juice, electrical juice, more than what most clients have available. Client B can feed 4 torches at this time. For more wait +/- 2 years. The electrical infrastructure is not plug and play, just the torch. Once that is sorted out we will see an order for 16 torches so he can complete one line. When that line is operating and all the bugs are worked out the remaining 5 lines will be undertaken.
I expect that most pelletizers are in a similar situation. The electrical investment will dwarf the torches alone, by many multiples. 500 kms of transmission lines through the Labrador wilderness will not happen overnight even if the power is waiting at the other end. Client B is lucky in that respect. The power is there and politicians are lining up to thump their chests when the transmission line construction is announced, probably before year end..
Most pelletizers probably do not have access to the quantities of "green" electricity required.
My advice to evertone is to calm down and take advantage of those who lack the patience needed in the situation.
Dear Snowdrift,
Good to hear from you again....and again with a tough one.
I think I answered this before...here is a refresher...and maybe with a bit more colour added:
Regarding the electrical installation of our torches, it is true that end-users may in some situations have to incur some additional costs if they plan to install torches at large scale... but this is not a new development and was known by all parties from the outset. In cases of large-scale implementation, it is fully anticipated that there may be an investment required to progress to fossil free production of steel using plasma and we are moving forward. I would suggest that the thinking may be...maybe !!....that along the way a lot of torches can be sold before we get to that tipping point and by that time any electrical requirements can be put in place...
I do not think people fully understand the sheer magnitude of the problem facing the industry and how sweet a plasma torch solution is.
There are huge benefits in changing out their current fuel system with electricity...huge benefits...and dare I suggest that the current environment might be ripe to finance such a green change out???? Get my drift...? This also takes time to consider amongst all the moving pieces...
I believe that many clients are indeed lining up their financing sources to get the conversion process started, (like buying 1-4 torches as previously discussed). I also believe that as we start building out the torches the electrical needs will be addressed (interesting way to stimulate the economy and go green as well, no?).
Although this has its unique time line, we very quickly see the impact it would have to Pyro’s top line. Doesn’t take many torch sales to have that impact. Particularly when you consider that multiple plants seem to be lining up to do basically the same thing in unison. I would suggest that even initial torch orders, when combined, could be staggering.
I could be entirely off base and something may come up that no one around the table anticipated, but right now everything is lining up as it should. Personally, I do not see any real alternative option if one is going to change out diesel burners with a true, cradle-to-grave, green technology.
Hope that helps,
Peter
Agoracom: Small Cap Investment - PyroGenesis Canada Inc - Re: Electricity requirements for torches