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PyroGenesis Canada Inc
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Shares Issued 167,389,455
Close 2021-09-27 C$ 5.25
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PyroGenesis signs JV for processing dross residues

2021-09-27 15:35 ET - News Release

Mr. Peter Pascali reports


Further to its Q2 2021 financial results press release (outlook section) dated Aug. 16, 2021, PyroGenesis Canada Inc. has signed joint venture and licence agreements with a leading residue processor to transform dross residues into high-value chemical products.

"This is a very interesting addition to PyroGenesis's offerings as it fits perfectly into PyroGenesis's existing portfolio of waste management services offered to the aluminum industry at a time when aluminum prices are making our core technology even more valuable. This JV not only solidifies our Drosrite offering, but it is also able to address a downstream problem that is increasingly plaguing the industry; namely, how to handle dross residues, which are becoming more and more regulated and banned from landfills," said P. Peter Pascali, chief executive officer and chair of PyroGenesis. "This is the ultimate coffee and doughnut strategy, where, with very little additional effort, we are able to sell, alongside Drosrite, a separate compelling green solution, which also further secures Drosrite's commercial competitiveness."

This 50/50 joint venture will be geared toward building, installing and operating dross residue valorization facilities worldwide. To this effect, PyroGenesis secured, through the JV, an exclusive licence to a patented and novel technology that is expected to convert dross residues into high-value chemical products. Under the terms of the joint venture, the exclusive access to the technology initially applies to projects in North America and in the Gulf Cooperation Council nations. Upon successful completion of the first project, the exclusive access to the technology will expand to include, for all sense and purposes, the majority of the world. These dross residues are currently either being (i) landfilled (which is increasingly becoming banned by regulators) or (ii) sold as cheap flux to the cement industry.

"We are increasingly finding that these residues are being stored pending a viable solution or are being treated with a very expensive technology to make them landfill acceptable," said Alex Pascali, senior business development manager of PyroGenesis. "We find there is a significant opportunity to be able to offer, through the JV, an economically and environmentally sound solution to a serious problem facing the industry. Today's announcement effectively secures PyroGenesis's existing market position by building upon the Drosrite advantage and tapping into unseen value in the waste stream."

The first plant, which will be built after securing a contract to process dross residues, has already been identified within the Gulf Region and discussions to secure and process those residues have already taken place. This facility is expected to be designed to process approximately 25,000 tonnes of aluminum dross residues per year and convert these aluminum dross residues into high-margin products with an expected selling price of between $200 (U.S.) to $450 (U.S.) per tonne.

Aluminum dross typically comprises two elements: (i) aluminum metal (60 per cent); and (ii) aluminum oxides (40 per cent). PyroGenesis's Drosrite system can recover up to 98 per cent of the aluminum metal fraction. It is this remaining 40 per cent aluminum oxide (dross residues) material that is often landfilled or sold as a cheap additive. Following today's announcement, it is expected that these residues could now be processed by the joint venture and converted into high-margin products, such as aluminum sulphate and ammonium sulphate, thereby transforming a waste stream and unlocking a potentially significant new revenue stream for the company.

"We believe that this announcement is a game changer for the aluminum industry as it allows PyroGenesis to offer a complete on-site dross processing service delivering zero-landfill/reduced-carbon solutions while at the same time increasing clients' profitability. We believe that this has never been done before," said P. Peter Pascali, chief executive officer and chair of PyroGenesis. "By working closely with our clients, we have been able to witness first-hand the challenges facing their industry and, more importantly, speak to operators and plant managers with respect to these issues. This provides us with invaluable insight upon which we can pitch engineering solutions as we have today. With this unique partnership, the JV enables PyroGenesis to include, amongst its offerings, another game-changing environmentally friendly solution that converts residues destined for landfill. PyroGenesis is increasingly becoming a green solution to the aluminum industry. We expect to expand on this advantage both within the aluminum industry and within other industries which are being faced with similar challenges."

PyroGenesis's Drosrite system is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. PyroGenesis's patented process avoids costly loss of metal while reducing a smelter's carbon footprint and energy consumption, providing an impressive return on investment. The system has been designed to process and recover valuable metals such as aluminum, zinc and copper from dross.

About PyroGenesis Canada Inc.

PyroGenesis Canada, a high-tech company, is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions that 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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