Mr. Peter Pascali reports
PYROGENESIS SUCCESSFULLY COMPLETES 900-KW PLASMA TORCH FACTORY ACCEPTANCE TESTING; RECEIVES PAYMENTS TOTALING $936,000; TORCH SHIPPED TO SWEDEN
PyroGenesis Canada Inc., further to previous press releases with respect to the Swedish torch contract, has successfully completed the factory acceptance testing (FAT) witnessed by RISE Energy Technology Center AB at the PyroGenesis facility in Montreal and has received payments totalling 643,196 euros (approximately $936,000 (Canadian)).
This contract, originally announced last January, is for a 900-kilowatt plasma torch system which was won in a competitive bid announced by the client.
This FAT was held at PyroGenesis's manufacturing facility where the client evaluated the equipment during and after the assembly process by verifying that the torch was manufactured and operated in accordance with design specifications. After successful testing, the torch was shipped to Sweden and is expected to arrive today, Sept. 18. PyroGenesis's team has arrived at the client's facility to perform site acceptance testing (SAT), as well as oversee the installation of the torch.
"The success of this testing paves the way for a significant business opportunity for PyroGenesis in developing zero carbon emission technologies. This torch is being used to address a particular segment of the Swedish government's commitment to zero carbon emissions, specifically that within the iron ore pelletization industry. The goal is to replace the traditional diesel burners used in iron ore pelletization with plasma torches," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Our plasma torch expertise, which we consider to be one of the largest, if not the largest, concentration of plasma expertise under one roof, has enabled us to deliver this high-power plasma torch (approximately one-megawatt range) in only nine months and to very exacting design requirements. This contract is aimed at developing fossil-free energy-mining-iron-steel value chains and thereby provides a basis for governance and industrial strategies for transformative change across all of Sweden. We are proud to be playing a significant and leadership role in Sweden's zero carbon emission policy."
Of note, PyroGenesis's 900-kilowatt plasma torch is to be used to replace fossil fuel burners in the iron ore induration (pelletization) process. Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation. In conventional technology, the process heat is provided by diesel/fuel burners. The combustion, in the burners, of natural gas, heavy oil and/or pulverized coal results in the production of greenhouse gases such as carbon dioxide. Plasma torches are therefore an environmentally friendly alternative.
According to management, a typical pellet plant producing 10 million metric tonnes of pellets annually emits approximately one million metric tonnes of carbon dioxide. The total world pellet production of 400 million metric tonnes of pellets corresponds to the production of about 40 million metric tonnes of carbon dioxide and represents a potential market for torch sales in excess of $10-billion worldwide.
Separately, the company announces today that, subject to regulatory approval, it has retained Independent Trading Group (ITG) to provide market-making services to the company in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation.
The agreement with ITG is principally for the purposes of maintaining market stability and liquidity of PyroGenesis's shares and is not a formal market-making agreement. There are no performance factors contained in the agreement between ITG and the company and ITG will not receive any shares or options from the company as compensation for the services it will render.
About PyroGenesis Canada Inc.
PyroGenesis Canada, a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products.
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