- HPQ Silicon, a green technology stock focused on silica and silicon material production, is unveiling a positive internal technical and economic study of subsidiary HPQ Silica Polvere’s fumed silica reactor
- The study confirms the technology’s technical viability and commercial attractiveness under a 1,000 tonnes per year scenario
- HPQ Silicon is a green technology stock focused on producing the critical materials needed to reach net-zero emissions
- HPQ Silicon stock has added 283.33 per cent since 2019
HPQ Silicon (TSXV:HPQ), a green technology stock focused on silica and silicon material production, is unveiling a positive internal technical and economic study of subsidiary HPQ Silica Polvere’s fumed silica reactor.
The study – prompted by interest from a fumed silica industry participant under a non-disclosure agreement – examined the viability of rapidly scaling up the proprietary reactor from its current 50 tonnes per year (tpy) pilot plant configuration to a 1,000 tpy commercial configuration.
The study confirmed the technical feasibility of the scale-up without sacrificing product quality or the reactor’s environmental advantages, including an 86 per cent reduction in energy usage compared with legacy technology. It also demonstrated potential EBITDA margins three times higher than the industry average of 20 per cent, as well as a capital investment 93 per cent lower than a conventional fumed silica plant.
Key study highlights
- Capex between US$9-US$10 per kilogram of annual capacity
- Energy consumption between 10-15 KWh per kg of fumed silica
- EBITDA margins between 60-65 per cent
- Payback period per 1,000 tpy reactor of approximately 1.7 years
- HPQ Silicon intends to meet anticipated fumed silica demand by building two commercial plants, each capable of producing 1,000 tpy
Supporting materials for the study include technology partner PyroGenesis’ (TSX:PYR) existing rough order-of-magnitude study on the cost of building the 1,000 tpy reactor, as well as third-party and publicly available data on selling prices for fumed silica and potential operating costs.
Investors can expect further updates to these projections after a pilot plant testing phase later this year.
Click here to read the full news release.
The fumed silica market
Fumed silica is a microscopic powder with high surface area and low-bulk density with diversified applications across cosmetics, pharmaceuticals, agriculture, adhesives, sealants, construction, batteries and automotives.
Global fumed silica sales reached US$1.3 billion in 2022, and are expected to hit US$2.1 billion by 2032.
“The shift of interest in our fumed silica offering – from the initial signing of our first NDA to explore the material commercial potential, to a current keen focus on the commercial scalability potential of our proprietary fumed silica reactor technology – marks another major step forward for HPQ Silica Polvere,” Bernard Tourillon, president and chief executive officer of HPQ Silicon, said in a statement.
“HPQ Silica is uniquely positioned to be the sole provider capable of supplying the materials required to meet the increasing demand for low-carbon fumed silica products,” Tourillon added.
HPQ Silicon is a green technology stock focused on producing the critical materials needed to reach net-zero emissions. The company’s efforts are centred on fumed silica, high-purity silicon, silicon-based anode materials for battery applications, and on-demand hydrogen production.
HPQ Silicon stock (TSXV:HPQ) is up by 4.34 per cent, trading at C$0.24 per share as of 9:35 am ET. The stock has added 283.33 per cent since 2019.
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