PyroGenesis Announces Improved Economics for Fumed Silica Reactor Project

MONTREAL, Jan. 11, 2024 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (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 announce that, further to the press release of HPQ Silicon Inc. (“HPQ”) dated January 10, 2024, the recent completion of an internal economic and technical study produced more favorable results than were previously indicated by HPQ for its Fumed Silica Reactor (FSR) technology project. This latest study was carried out at the request of a third-party corporation, which will not be named pursuant to the terms of a non-disclosure agreement. According to HPQ, this latest study confirms the viability of, and advantages from, scaling up the FSR from the current 50 tonnes per year (TPY) pilot plant configuration to a 1,000 TPY commercial configuration. ^{[1] [2]}

According to HPQ’s release, “the study unveiled its robust economic potential, emphasizing potential EBITDA margins three times higher than the industry average of 20% ^[3] and a capital investment 93% less than that required for building a conventional Fumed Silica plant ^[4]”.

As stated in PyroGenesis’ news release dated November 9, 2023, the production of the fumed silica reactor pilot plant is already underway, with a planned completion by Q2 2024. The Company confirms this timeline to be on track.

The FSR, another plasma-based process developed by PyroGenesis, converts quartz into commercial-grade fumed silica (or Pyrogenic Silica) in a single and eco-friendly step. By eliminating the use of harmful chemicals generated by conventional methods, the groundbreaking FSR approach, if successfully applied on a commercial scale, will contribute to the repatriation of silica production to North America.

With respect to the results of this latest study, the Company, in conjunction with management of HPQ Polvere (the HPQ subsidiary which owns the FSR technology), used a rough order of magnitude study regarding the cost of building the first 1,000 TPY Fumed Silica Reactor. HPQ’s management then used selling prices for the Fumed Silica and potential operating costs from information derived from third party sources and publicly available data.