Mr. Peter Pascali reports

PYROGENESIS ANNOUNCES 28-DAY LAB STRENGTH TESTS ACHIEVE UP TO 99.56% ABOVE COMPRESSIVE STRENGTH TARGET FOR GREEN CEMENT ADDITIVE PRODUCT

PyroGenesis Canada Inc. has been advised by its client, Progressive Planet, that the latest series of compressive strength tests on its PozPyro green cement additive product reveal impressive results, posting strength comparisons significantly above the acceptable standard for similar material. PozPyro enhances the strength of concrete as a replacement for fly ash, which is in diminishing supply.

PozPyro, a cement alternative, is being developed in collaboration with Progressive Planet as a supplementary cementing material (SCM) designed to partially replace traditional Portland cement. Of note, Portland cement emits substantial amounts of CO2 (carbon dioxide) during its production. PozPyro, on the other hand, is created by using a PyroGenesis plasma-based process that transforms quartz silica, a widely available material, into an SCM (PozPyro), without off-gassing CO2 during the production process. This innovation comes at a time when the cement industry seeks more sustainable practices without compromising quality or performance.

"Quartz silica is one of the most abundant materials in the earth's crust," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "The ability to economically convert it into PozPyro could offer a new supply of material to compensate for the diminishing supply of fly ash, a common SCM, which, by the way, is generated by the same coal-fired power plants which are being targeted for shut down in Canada by 2030."

According to Progressive Planet's news release today, concrete producers are looking for SCMs that: (i) increase the compressive strength of their mix while at the same time; (ii) lowering their carbon footprint without sacrificing workability.

Workability

The workability of cement is measured by water demand and is a measure of its ease of use in various concrete applications. The smaller the water demand number, the better the reading. A passing water demand number must be less than 115 per cent of the water demand of the control mix.

The water demand for PozPyro was between 99 per cent and 109 per cent for all test batches, and, as such, PozPyro demonstrated excellent workability.

Strength activity index (SAI)

The SAI is an industry standard for measuring the compressive strength of cement mortar cubes. As announced in a press release on April 11, 2024, the results of the seven-day testing that showed an approximate average plus-45-per-cent SAI gain across four tests against the minimum target value.

In the 28-day tests announced today, Portland cement was used as the control product, with varied compressive strengths between 35.26 megapascals and 39.62 MPa, depending on the test.

These tests were conducted in two series, A and B, with two tests in each series, using different input variables to test for optimized results.

Testing against minimum compliance (75 per cent Portland cement MPa)

For SAI tests, a cement additive product test is acceptable at a minimum strength of 75 per cent of the control product strength. For one Series B test, the Portland cement control achieved a compressive strength value of 36.18 MPa at 28 days. An additive product would therefore be acceptable based on achieving 27.14 MPa (equating to 75 per cent of the Portland cement control strength).

The results for the individual Series B test showed a blend of Portland cement containing 20 per cent PozPyro far surpassed this target, achieving a peak result of 54.15 MPa -- a result 99.56 per cent higher than the minimum acceptable value.

The overall average gain for all tests in both series A and B was plus 67.43 per cent against the minimum compliant for an acceptable cement additive product.

Testing against maximum compliance (100 per cent Portland cement MPa)

When compared with a 100 per cent value of Portland cement alone, this same Series B PozPyro/Portland cement blend test surpassed even the full-strength value of the Portland cement control product by up to 49.67 per cent.

The overall average gain for all tests in both series A and B was plus 25 per cent against the maximum product compliance for an acceptable cement additive product. This result means that the PozPyro material, when added to Portland cement at a 20 per cent/80 per cent blend, outperformed a cement-only Portland cement control in strength tests by 25 per cent.

"These 28-day test results confirm the impressive results achieved by the previous seven-day tests, and underscore yet again the potential transformative nature of plasma in producing materials, in both an economically and environmentally beneficial manner, that are key to heavy industry," said Mr. Pascali, president and chief executive officer of PyroGenesis. "Not only were we able to far surpass the minimum acceptable product standard compared to 75 per cent of the control, but when compared to a full value of the control the PozPyro green cement additive showed a 49.67 per cent gain. In other words, these tests suggest that not only can PozPyro potentially outperform other traditional cement additive products in strength, it has the potential to directly outperform pure cement alone. As I've stated before, the cement industry is a key target for us, and we have high expectations for the PozPyro green cement additive material."

Steve Harpur, chief executive officer of Progressive Planet, commented on the results over the last month, during which Progressive Planet prepared four separate batches of cement mortar cubes to test, under the American Society for Testing and Materials (ASTM) testing protocol, at both seven and 28 days for compressive strength: "These results were exceptional and provide us the technical confidence to take the next steps to bring this product to market. In the Pacific Northwest alone, over one million tons of fly ash will cease to be generated by the summer of 2025 at which time two massive thermal coal to energy facilities will have finished converting from burning coal to natural gas."

CO2 emissions/lack thereof

While compressive strength is key to overall product viability, the reduction of CO2 emissions achieved by using PyroGenesis's plasma technology, a low-carbon emitting process, has the potential to offer further green benefits.

CO2 emissions within a product life cycle are defined globally within three categories: Scope 1, Scope 2 and Scope 3.

Generally speaking:

• Scope 1 emissions are direct greenhouse gas emissions caused by the company's production processes.
• Scope 2 emissions are indirect emissions, that factors in the use of energy purchased externally (and the CO2 created as a result of that energy being originally produced).
• Scope 3 emissions represent the CO2 emissions from operations upstream and downstream of the company's operations, such as raw material production, transportation, waste and end-of-life remediation.

When compared with other traditional cement additives, the production of PozPyro may result in dramatically lower CO2 emissions. For the purposes of the graph below, Scope 2 emissions regarding electricity usage have been factored into PozPyro's emission level. Without these Scope 2 emissions, the greenhouse gas emissions released during the production of PozPyro may be virtually zero.

"These are the best results we have ever seen in an alternative cementing material. The fact that silica-based cements do not off gas CO2 is an additional bonus to the exceptional compressive strength results," added Steve Gurney, president of Progressive Planet.

Potential adressable market

According to Progressive Planet's press release of today, it was noted that the North American cement market size reached 194.2 million United States tons in 2023, and they expect that it will reach 279.8 million tons by 2032, reflecting an annual growth rate of 4 per cent between 2024 and 2032. Assuming that pozzolanic cements could be a substitute for 20 per cent of Portland cement, the total addressable North American market is projected to reach over 55 million tons by 2032. At a projected price of $200 (U.S.) per ton by 2032, the potential market is over $11-billion (U.S.) per annum by that time.

Next steps: pilot plant

Now that the compressive strength of PozPyro has been validated, the next critical step is to progress toward the pilot plant stage. In preparation for this phase, an engineering feasibility study will be conducted over the next several months. This comprehensive study will focus on quantifying various critical elements to ensure the economic viability of the pilot plant operations. Key considerations will include maximizing heat recovery and other efficiency metrics, which are essential for sustainable and cost-effective production.

The company is committed to rigorous evaluation and optimization processes, aiming to address all technical and economic aspects of the pilot plant. Updates on the company's progress and findings from the feasibility study will be provided in due course, as PyroGenesis move closer to achieving a fully operational pilot plant that meets its high standards for innovation and efficiency.

PyroGenesis's involvement in developing PozPyro from quartz is part of PyroGenesis's three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. PozPyro is part of PyroGenesis's commodity security and optimization tier, where the recovery of viable metals and the optimization of production to increase output helps to maximize raw materials, and improve the availability of critical minerals.

About PyroGenesis Canada Inc.

PyroGenesis Canada, a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) and are economically attractive alternatives to conventional dirty processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion-dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office, and its 3,800-square-metre and 2,940-square-metre manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997.

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