Mr. P. Peter Pascali reports

PYROGENESIS CONVERTS PLASMA GAS TO BATTERY-GRADE CARBON BLACK AND HYDROGEN

PyroGenesis Inc. has successfully produced battery-grade carbon black and hydrogen (H2) from a proprietary PyroGenesis plasma torch system. The result was achieved with both a natural-gas- and methane-powered plasma torch as the primary hydrocarbon feedstock, which is then directly converted into carbon black and H2 without the need for a secondary raw material feedstock and additives. The resulting carbon black met quality levels well above battery-grade requirements, as determined by an independent testing lab. Additionally, with this achievement, PyroGenesis is the first company to successfully use hydrocarbon (methane/natural gas) as both the plasma-forming gas and the primary feedstock in a DC (direct current) plasma torch to produce solid carbon and H2 without any additives. The system was designed by PyroGenesis on behalf of its client, a Canadian company exploring alternative use of carbons for commercial applications.

As previously announced (press release dated Sept. 3, 2024), this project began with a first-phase contract valued at $1-million for the design and delivery of a customized pilot-scale plasma reactor and associated testing infrastructure. The successful results announced today confirm that: (i) the PyroGenesis plasma-based process produces carbon black at exceptionally high grades, meeting key battery-grade levels for ash content, metallic purity, surface area and tapped density; and (ii) methane and natural gas can be used as both plasma gas and feedstock to produce carbon black and clean hydrogen.

"This achievement, where plasma is the primary and sole feedstock, paves the way to a more efficient and environmentally friendly production process for two extremely in-demand materials at high quality levels," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Carbon black is one of the most important commodities worldwide and is in the top 50 industrial chemicals manufactured worldwide based on annual tonnage. It comprises 25 to 30 per cent of vehicle tires. While its use in rubber represents its largest use, carbon black of the quality required for use in batteries is difficult to produce. We have achieved this level with our innovative process, which is also cleaner and simpler. Compared to the conventional furnace black or thermal black production processes, which rely on the combustion or thermal decomposition of heavy hydrocarbon residues such as petroleum oils or coal tar, the approach developed by PyroGenesis is combustion-free, emission-free, additive-free and, most importantly, secondary-feedstock-free. It also provides unique optionality, allowing for the use of plasma torches powered by either methane or natural gas, the latter of which is generally considered more challenging in the production of carbon black due to its more complex and variable composition."

The simplified DC plasma-based platform developed by PyroGenesis offers a more practical path to industrial production of carbon black and hydrogen compared with both conventional processes and to processes that use other plasma technologies, including AC (alternating current), RF (radio frequency), microwave systems and even other forms of DC plasma. This simplified design and architecture would be expected to lower capital and construction costs and streamlined logistics related to the storage and use of raw materials.

Next steps: The company is working with the client on further developments related to this novel approach, with a focus on: (i) the output of additional materials; (ii) developing steps toward commercial-scale production; and (iii) targeting integration of the hydrogen produced by the process into the gas grid.

Industry and market context

Carbon black serves large and growing industrial markets. Carbon black is used primarily in tires and other rubber products while also serving important roles in plastics, coatings, printing inks and conductive applications. A vehicle tire contains on average 25 to 30 per cent carbon black. It is used in tires as a reinforcing filler to increase durability, lifespan and strength, conducting heat away from the tread to prevent overheating while also protecting the tire from deterioration from ultraviolet rays and ozone. For batteries, carbon black is used as a conductive filler to help boost energy density and dissipate heat, particularly in lithium-ion batteries for electric vehicles and electronics. According to Grand View Research, the global carbon black market was valued at approximately $24.5-billion (U.S.) in 2025 and is projected to reach approximately $36.1-billion (U.S.) by 2033.

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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