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PyroGenesis says plasma torch systems delivered to client; moves directly to site acceptance testing

Published: 09:45 26 Jan 2023 EST

PyroGenesis Canada Inc -- says plasma torch systems delivered to client; moves directly to site acceptance testing

PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) has provided a positive update on its iron ore pelletization torch business line following recent inquiries from investors

The Montreal-based high-tech company revealed that it has successfully delivered four 1 megawatt (MW) plasma torch systems to a top international iron ore producer, Client B, for use in the client’s iron ore pelletization furnaces – a key upstream process in the steelmaking industry.

With the delivery, Client B has all the components related to the plasma torch systems on-site at one of its key integrated iron ore mining and processing locations, said PyroGenesis.

READ: PyroGenesis announces approval of NexGen facility by global aerospace client for 3D metal powder production

This allows for the installation and trials, also known as site acceptance testing (SAT) to proceed. Despite supply chain challenges, completion of the trials is expected by the end of 2Q 2023.

In addition, PyroGenesis reported that the value of the contract has increased by around $500,000 because of additional modifications requested by the client during manufacturing.

Project exceeds $6.5 million

According to the company, the total value of the project now exceeds $6.5 million. As the delivery milestone associated with the payment has been met, a payment of around $2.1 million is expected to be received within the next few weeks, said PyroGenesis.

Separately, it confirmed that the planned trials of its plasma torch system with another client, Client A, continues to advance. Client A informed PyroGenesis that, despite the client’s own operational delays, “all objectives remain the same,” and the trials will be going ahead as designed.

Significantly, Client A and Client B are conducting these trials at full purchase cost to them, not as equipment loans or free trials, noted PyroGenesis.

The names of the clients – both multibillion-dollar international producers of iron ore who are undertaking the testing of plasma torches to replace fossil fuel-burners in iron ore pellet baking furnace – have been kept confidential for competitive reasons.

“With the delivery of the four completed plasma torch systems to Client B, we now have PyroGenesis’ plasma torch systems in the hands of two of the largest, most influential companies in the global iron and steelmaking value chain,” PyroGenesis CEO P. Peter Pascali said in a statement.

“Both companies have made it known publicly that reducing greenhouse gases in the upstream sections of the iron and steel industry is both imperative but proven to be challenging to find areas where improvements can be made; modification of the fossil-fuel burning furnaces is one of the only areas upstream where a meaningful impact can be made.”

Global patent

While natural gas, or hydrogen, offer improvements over diesel fuel, the limited impact on carbon dioxide emissions, means that these measures have to eventually give way to electric alternatives.

“Plasma torches – for which PyroGenesis owns the global patent for use in iron ore pelletization – provide just such a complete electric step towards these companies’ upstream decarbonization goals, hence the importance of these plasma torch trials for both clients,” pointed out Pascali.

Pelletization is the process in which iron ore is concentrated before shipment. This reduces the cost of transportation and provides an essential feedstock for blast furnaces. In conventional technologies, the process heat is provided by fuel oil, or natural gas burners, which are environmentally damaging.

In contrast, plasma torches utilize renewable electricity and offer an environmentally attractive alternative to fossil fuel burners. Importantly, PyroGenesis has the process patent to replace fossil fuel burners with its clean plasma torches.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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