- Green technology stock HPQ Silicon (TSXV:HPQ) is announcing an improved plant design that expedites its Fumed Silica Reactor’s ramp-up to commercial production
- Production is slated to commence in Q3 2024, followed by sample delivery to secure offtake agreements for the company’s more cost-effective and ESG-friendly product
- HPQ Silicon is a green technology stock focused on producing the critical materials needed to reach net-zero emissions
- HPQ Silicon stock (TSXV:HPQ) has given back more than 30 per cent year-over-year, but has gained approximately 90 per cent since 2019
Green technology stock HPQ Silicon (TSXV:HPQ) is announcing an improved plant design that expedites its Fumed Silica Reactor’s ramp-up to commercial production.
PyroGenesis Canada (TSX:PYR), the technology provider for the project, simplified and de-risked the design of the 50 tonnes per year (TPY) pilot plant system, streamlining the path to HPQ’s first 1,000 TPY plant, which is scheduled for commissioning in Q2 2024.
The Fumed Silica Reactor pilot plant is scheduled to begin operations in Q3 2024 under a batch protocol to replicate lab-scale production of fumed silica with surface areas between 150 and 200 m2/g.
The plant will then progress to semi-continuous operations to produce 5m3 (200 kg) of commercial-grade fumed silica, or 199 times the entire lab-scale production, enabling HPQ to send samples to potential clients and secure offtake agreements.
Operational optimization will follow, with the goal of achieving food/pharma-grade fumed silica with surface areas exceeding 300 m2/g. This high-value variant is heavily in demand for beauty and personal care products, which will make up 30 per cent of the more than US$2 billion global fumed silica market by 2032, according to Global Market Insights.
Should client demand require it, HPQ could switch the plant to full-capacity mode and generate around 161 kg per day, which works out to 50 TPY.
The fumed silica market tailwind
Fumed silica demand is expected to add 80,000 tonnes to the market between 2024 and 2029, bringing it to a total of 390,000 tonnes, according to Mordor Intelligence, thanks to its varied uses across personal care, pharmaceuticals, agriculture, adhesives, sealants, construction, batteries and in the automotive industry. This means the world will need approximately 16,000 additional tonnes of capacity per year, paving the way for energy-efficient solutions like the Fumed Silica Reactor to set a new industry paradigm.
HPQ Silicon’s differentiated technology
Compared with the low-margin, capital-intensive and emissions-heavy processes in place at the five chemical companies that control the fumed silica market – Evonik Industries, Cabot Corporation, Wacker Chemie, Tokuyama Corporation, and OCI Company – the Fumed Silica Reactor stands out as a key driver towards industry sustainability. Key advantages include:
- The reactor uses 86 per cent less energy and requires 93 per cent less in capital expenditures than legacy methods
- It doesn’t require chemical treatments to achieve desired grades
- It holds the potential to yield EBITDA margins three times higher than the industry average
With commercial production around the corner, the Fumed Silica Reactor is making a strong case as the ESG-centred option for investors in the space.
Management insights
“Fast tracking and de-risking the commercial scale-up of our proprietary Fumed Silica Reactor technology, with its disruptive capability to produce low-carbon footprint and hydrogen chloride-free fumed silica in just one step, represents a significant advantage for HPQ,” Bernard Tourillon, president and chief executive officer of HPQ Silicon, said in a statement.
“Going forward,” he added, “HPQ Polvere [the subsidiary overseeing the project] plans to negotiate offtake agreements in order to optimize the financial model and secure favourable financial terms for the construction of our first 1,000 TPY commercial-scale plant. Depending on the size of the offtake demand, HPQ may look at building additional 1,000 TPY units concurrently or over time.”
About HPQ Silicon
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 5.88 per cent, trading at C$0.18 per share as of 9:36 am ET. The stock has given back more than 30 per cent year-over-year, but has gained approximately 90 per cent since 2019.
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