PyroGenesis Provides Update on the PUREVAP Quartz Reduction Reactor and Fumed Silica Projects with HPQ Silicon Inc.

Prepares for Milestone Silicon Pour on Route to Full Commercialization

MONTREAL, Oct. 03, 2023 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), a high-tech company (the “Company” or “PyroGenesis”) that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG) and address environmental pollutants, is pleased to provide, further to HPQ Silicon Inc’s (“HPQ” or the “Client”) press release dated September 28^th, 2023 and the Company’s news release dated June 1, 2023, an update on its strategic engineering partnership with HPQ on two projects: (i) the PUREVAP Quartz Reduction Reaction (QRR) pilot plant and (ii) the Fumed Silica Reactor (“FSR”) project. As part of the terms of both projects with HPQ, PyroGenesis benefits from a royalty payment representing 10% of the Client’s eventual sales, with set minimums. With respect to the FSR with HPQ Silica Polvere Inc. (“HPQ Polvere”), a wholly owned subsidiary of HPQ, this royalty stream, can, at any time, be converted by PyroGenesis into a 50% ownership in HPQ Polvere.

Given the number of inquiries received by investors, PyroGenesis provides the following update:

PUREVAP Quartz Reduction Reactor (QRR) Project

The innovative QRR pilot plant was designed and built to transform lower-purity quartz (SiO₂) into high-purity silicon (Si) in a single step. The QRR, which uses electric high temperature plasma arc, reduces production costs and significantly lowers energy consumption with a smaller carbon footprint compared to traditional methods.

As noted by HPQ, the demand for silicon (Si) is projected to surpass 3.8 million tonnes and be valued between US$15 billion and US$20 billion by 2025. This projection doesn’t consider the additional 300,000 tonnes of demand for silicon-based anode material projected by 2030 arising from demand in the battery market, representing an additional market valued at approximately US$ 15 billion. The global silicon anode battery market is valued at US$65.5 billion in 2022 and is expected to reach US$123.1 billion by 2030, for a CAGR of 22.3% during the forecast period of 2023-2030.¹