PyroGenesis Signs Binding Letter of Intent to Acquire AirScience Technologies Inc. for $4.8MM - Seite 2

The movement to transition economies to net zero emissions is evidenced in the US’ commitment to cut GHG emissions in half by 2030, and to zero by no later than 2050.¹

In our own backyard, in Québec, we are already seeing this movement towards incorporating RNG into traditional gas pipelines. When the Québec government recently unveiled its ambitious plans for a green economy, they incorporated RNG and green hydrogen initiatives as a strategy to reduce GHG emissions. In their 2030 plan for a green economy, the Québec Government launched its first implementation plan, covering 2021-2026, and which was backed by a budget of no less than $6.7 billion over the ensuing five years. More specifically, it earmarked over $200 million for RNG projects in the form of investments in the financing of RNG production and distribution projects.²

PyroGenesis believes that AST’s experience in biogas upgrading, combined with PyroGenesis’ engineering and multidisciplinary skills, as well as its proven record of meeting the exacting demands of multibillion dollar companies and the US military, positions the combination well to address the opportunities arising from this growing need to clean biogas.

More precisely, PyroGenesis’ acquisition of AST will finally allow AST to realize its full potential by providing the skill set and assets which have been in need at AST, and the lack of which have been an impediment to their growth. Amongst these are access to PyroGenesis’ (i) solid quality management system, including ISO 9001 certification, (ii) multidisciplinary team of engineers (including process, mechanical and electrical engineering) and modeling capabilities (CFD, 3D mechanical, FEM analysis, process modeling), (iii) valorization of intellectual property through patenting of innovations, (iv) newly upgraded state-of-the art fabrication and warehousing facility allowing for quick turnaround of equipment and parts to customers, and (v) over 30 years history with a long list of high-profile customers.

Q2. Can you expand on this opportunity?

A.   Sure.
Biogas production in North America is an industry on the verge of explosive growth and with significant potential for additional expansion and development.

The North American biogas market is vastly under-utilized when compared to other parts of the world; there are under 2,500 sites producing biogas in North America as compared to over 10,000 sites in Europe.³ According to the Canadian Biogas Association, the full potential of biogas development should lead to an additional 1,800 separate construction projects requiring a capital investment of approx. $7 billion and with further economic spin-offs of over $20 billion. The global biogas market size was US $25.5 billion in 2019 and is projected to reach US $31.69 billion by 2027, exhibiting a CAGR of 5.30% during the forecast period (2020-2027).⁴