- A high-tech company that designs, develops, manufactures and commercializes advanced plasma processes
- Three commercial business lines positioned for rapid growth through strategic partnerships with multi-billion-dollar entities
- Revenue growth through internal and external sources
What PyroGenesis does:
PyroGenesis Canada Inc (CVE:PYR) (OTCMKTS:PYRNF) is a high-tech company that designs, develops, manufactures and commercializes advanced plasma processes.
Plasma, considered the fourth state of matter, comes from an ancient Greek word that means ‘moldable substance’ or ‘jelly.’ In the plasma state, the ionized gaseous substance is highly electrically conductive, making it incredibly useful in high tech manufacturing industries such as defense, metallurgical, mining, additive manufacturing (including 3D printing), oil & gas, and environmental industries.
The team is comprised of experienced engineers, scientists and technicians working out of its Montreal office and a 3,800-square-metre manufacturing facility.
The company develops and produces innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Its three major business lines are military/environmental, toll manufacturing and additive manufacturing.
Essentially, PyroGenesis harnesses the unique properties of thermal plasma to melt and transform metal, carry out high-temperature chemical reactions and convert waste into energy.
How is it doing:
PyroGenesis hit a key milestone in March when it received its first payment as part of a C$25 million contract with waste management company Drosrite International LLC.
The payment of C$1.4 million kicks off a deal that licenses PyroGenesis to manufacture and sell aluminum dross processing DROSRITE systems and technology to Saudi Arabia and other Middle Eastern countries.
PyroGenesis expects to receive C$25 million over the next twelve months in payments scheduled to match Drosrite International’s cash flow, on top of a C$3 million annual payment each of those years and a variable amount for the subsequent 18 years based on international benchmarks.
Meanwhile, the company’s partnership with HPQ Silicon Resources to advance its PUREVAP nano-reactor is going from strength to strength.
In February, the two firms announced a new low-cost manufacturing process for producing the spherical silicon metal (Si) nano-powders and silicon metal nanowires needed for the next generation of lithium-ion silicon metal batteries. PyroGenesis finalized the engineering designs to upgrade a PUREVAP QRR into a PUREVAP reactor that can “transform” melted silicon metal into spherical nano-powders and nanowires.
As a result of the work, a new provisional patent application has been filed to protect the new process.
Outside of the joint venture with HPQ, PyroGenesis said it had successfully completed all torch tests for client Rise Energy Technology Center AB and has received final payment from the Swedish company.
This Rise Energy contract, originally announced in January 2019, is for a 900-kilowatt plasma torch system, which was won in a competitive bid process.
PyroGenesis also signed an agreement with a US tunnel manufacturer to develop and supply high-powered plasma torches designed specifically for tunnelling applications. It will also be involved in all aspects of design and development for the unnamed company’s project. The scope of work involves several phases based on ongoing results.
- Receipt of payments from DROSITE contract
- Growing demand for PyroGenesis’s torch offering from fossil fuel industry
- Completion of reactor conversion (with HPQ Silicon Resources) and having samples ready in fiscal 2020
What the boss says:
“The receipt of this first payment marks an important milestone for PyroGenesis as it triggers the official beginning of the project between DI and their client, in terms of benchmarks and deadlines,” CEO Peter Pascali said in a statement accompanying the Drosite payment news in March.
“Once again, we are proud to see the DROSRITE technology being adopted by one of the premier aluminum smelters in the world,” Pascali said. “It indeed validates PyroGenesis’ DROSRITE technology, as it has become the dross processing solution of choice to a very credible end-user.”
Contact Angela at firstname.lastname@example.org
Follow her on Twitter @AHarmantas