Mr. P. Peter Pascali reports

PYROGENESIS' PLASMA-BASED SPARC SYSTEM OFFICIALLY UNVEILED AT LAUNCH OF NEW ZEALAND'S NATIONAL REFRIGERANT DESTRUCTION FACILITY

PyroGenesis Inc.'s plasma-based Sparc system was unveiled during the official launch of New Zealand's national refrigerant destruction facility on Friday, March 20, 2026. The facility is the first of its type in the southern hemisphere and will use PyroGenesis's patented all-electric steam plasma arc (Sparc) system to safely destroy up to 100,000 kilograms per year of hazardous end-of-life synthetic refrigerants, such as CFCs (chlorofluorocarbons), HFCs (hydrofluorocarbons) and HCFCs (hydrochlorofluorocarbons). These gases have a combined global warming potential of 220 million kilograms of carbon dioxide equivalent (CO2e). Their destruction ends the potential for harm.

PyroGenesis was awarded the contract, valued at approximately $6-million, to design and build the Sparc system for New Zealand. This was part of a national initiative to address the climate impact of harmful refrigerant gases locally, rather than continuing the existing practice of collecting, storing and then transporting the gases to Australia for incineration. Synthetic refrigerants are found in heat pumps, commercial refrigeration, and residential and commercial air-conditioning systems. When those products are disposed of, the refrigerants contained within can leak into the environment and, as such, must be captured for treatment. With the opening of this new facility, New Zealand's end-of-life refrigerants will no longer need to be stockpiled and shipped offshore. Instead, they will be permanently and safely destroyed in New Zealand, using PyroGenesis's patented all-electric technology. Additionally, the facility is adjacent to geothermal plants, enabling the use of renewable energy to help power the operations and support an environmentally sustainable closed-loop system.

Speaking at the facility opening in the town of Kawerau, Richard Lauder, chair of the Trust for the Destruction of Synthetic Refrigerants, said: "This plant represents the beginning of a new chapter in advanced environmental stewardship and action on dealing with end-of-life refrigerants in Aotearoa, New Zealand." Mr. Lauder discussed how refrigerants touch every corner of New Zealand, and reliance on them is growing exponentially -- from home and commercial air conditioning, health care, supermarkets, and food service to logistics and temperature-controlled cold supply chains. "Ultimately, to fully address the climate impact, these gases must be safely and permanently destroyed when they reach end of life. And now, that solution exists here in New Zealand."

PyroGenesis's patented all-electric Sparc system uses inexpensive steam as the plasma-forming gas to generate a hydrolysis reaction that safely destroys ozone-depleting refrigerants such as CFCs, HCFCs, HFCs, halons and PFCs. Sparc provides significantly reduced operating costs and carbon footprint, with cleaner operations and no incineration when compared with processing or incineration which typically use more expensive gases and fossil fuels. The system is based on the technology platform originally developed by PyroGenesis for both the U.S. Navy and Air Force.

"Projects of this kind that advance a cleaner, more sustainable environment while streamlining logistics by reducing the storage and transport of hazardous materials demonstrate how all-electric, plasma-based technology can deliver both environmental benefits and meaningful gains in operational efficiency," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Refrigerants are crucial for cooling but have a global warning potential thousands of times that of CO2. In fact, one kilogram of a common HFC refrigerant such as R-410A has approximately the same greenhouse effect as two tonnes (2,000 kilograms) of CO2. With the opening of the national refrigerant destruction facility, our Sparc system will be instrumental to the national initiative for the safe destruction of hazardous refrigerants in New Zealand and to the reduction of GHGs [greenhouse gases] across the southern hemisphere."

About PyroGenesis Inc.

PyroGenesis leverages 35 years of plasma technology leadership to deliver advanced engineering solutions to energy, propulsion, destruction, process heating, emissions and materials development challenges across heavy industry and defence. Its customers include global leaders in aluminum, aerospace, steel, iron ore, utilities, environmental services, military and government. From its Montreal headquarters and local manufacturing facilities, PyroGenesis's engineers, scientists and technicians drive innovation and commercialization of energy transition and ultrahigh-temperature technology. PyroGenesis's operations are ISO 9001:2015 and AS9100D certified, with ISO certification maintained since 1997. PyroGenesis's shares trade on the Toronto Stock Exchange (symbol: PYR), the OTCQX (symbol: PYRGF) and the Frankfurt Stock Exchange (symbol: 8PY1).

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