PyroGenesis Signs Binding Letter of Intent to Acquire AirScience Technologies Inc. for $4.8MM
Enters Renewable Natural Gas Marketplace Expands GHG Reduction Portfolio
MONTREAL, April 27, 2021 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), a high-tech Company (hereinafter referred to as the “Company” or
“PyroGenesis”), that designs, develops, manufactures and commercializes plasma atomized metal powder, environmentally friendly plasma waste-to-energy systems and clean plasma torch products, is
pleased to announce that it has signed a binding Letter of Intent (“LOI”), which outlines the terms and conditions pursuant to which PyroGenesis would acquire AirScience Technologies Inc (“AST”)
for $4.8MM (the “Purchase Price”). The LOI is binding on AST, but it is only binding on PyroGenesis if in its sole opinion, it is satisfied with the final due diligence currently in progress. The
option to satisfy the Purchase Price in shares or cash is at the sole discretion of the buyer, and will only be made on, or about, final closing.
AST is a Montreal-based company that designs and builds (i) gas upgrading systems (specifically from biogas to renewable natural gas, or “RNG”), (ii) Pyrolysis-Gas Purification, (iii) Coke-Oven Gas (“COG”) Purification as well as providing (iv) Biogas & Landfill-Gas Flares and Thermal Oxidizers.
Mr. P. Peter Pascali, CEO and Chair of PyroGenesis, discusses this acquisition in the following Q&A format.
Q1. First, before we delve into the specifics of this acquisition, can you explain what RNG is, and how biogas upgrading relates to this?
A. For sure.
RNG, which is also called biomethane, is produced from organic waste in landfills, household waste, agricultural waste and wastewater sludge. The decomposition of this organic matter results in a biogas, which is then captured and purified to produce carbon neutral RNG. This upgrading/purifying of a biogas into an RNG is called the biogas upgrading process, and is typically done by cleaning, drying, and separating the methane in the biogas into an RNG.
Why is this done? Because this biogas emitted from a landfill (as an example), and which has been converted into an RNG, can now be sold into the natural gas pipeline network thereby reducing the need for conventional gas. This process has essentially repurposed damaging greenhouse gasses (“GHG”) emitted from a landfill into a valuable product.
What is even more interesting is that governments are now legislating gas distributors to incorporate minimum amounts of RNG into their pipelines. This has, in turn, created a huge need for biogas upgrading facilities worldwide, but particularly in North America, and it is this need that AST is targeting.