MONTREAL, Nov. 12, 2020 (GLOBE NEWSWIRE) — PyroGenesis Canada Inc. (TSX-V: PYR; OTCQB: PYRNF; FRA: 8PY) (the “Firm” or “PyroGenesis”), a high-tech firm that designs, develops, manufactures and commercializes superior plasma processes and merchandise, is happy to offer an replace on the Firm’s iron ore pelletization plasma torch enterprise.

Mr. P. Peter Pascali, CEO and Chair of PyroGenesis, supplies this replace within the following Q&A format. The questions, for probably the most half, are derived from inquiries obtained from buyers, and analysts:

Q1. For these who are new to the story, may you please present us with some background in your high-powered (~ 1 MW vary) plasma torch enterprise and the way it relates to the iron ore pelletization trade?

A. Most definitely.

For background, pelletization is the method during which iron ore is concentrated earlier than cargo, thus considerably decreasing the price of transportation, and offering a required feedstock for blast furnaces. In typical applied sciences, the method warmth is supplied by gasoline oil or pure fuel burners (each environmentally damaging). The combustion, within the burners, of fossil fuels leads to the manufacturing of greenhouse gases (“GHG”), primarily CO2. Plasma torches, against this, make the most of renewable electrical energy and as such supply an environmentally engaging different to fossil gasoline burners.

In January 2019, PyroGenesis was contracted for a 900kW plasma torch with a consumer which we later disclosed to be RISE Vitality Expertise Heart AB (“RISE”) of Sweden. RISE was engaged in addressing the Swedish authorities’s dedication to zero carbon emissions1; particularly that inside the iron ore pelletization trade. The final word goal was to find out the advantages, if any, of changing conventional fossil gasoline burners utilized in iron ore pelletization with plasma torches. We delivered the plasma torch and accomplished testing in 9 months.

Of be aware, PyroGenesis has a patented course of to exchange fossil gasoline burners with PyroGenesis’ clear burning plasma torches, thereby decreasing GHG emissions, for the iron ore pelletization trade.

Q2. So, PyroGenesis has the patent to exchange fossil fuel burners with plasma torches in the iron ore pelletization trade?

A. Sure, we do. In different industries, we count on to leverage off of our first mover benefit developed within the iron ore pelletization trade.

Q3. The RISE contract went effectively. What occurred subsequent?

A. Our authentic objective was merely to have our torches be a contender in Sweden’s technique to scale back GHG emissions within the iron ore pelletization trade. What we didn’t understand on the time, was the influence this is able to have on the trade as a complete. As famous above, we efficiently accomplished the RISE contract in 9 months, which as soon as made public, had a convincing impact as we apparently had been addressing a big concern within the trade with respect to GHG emissions discount. Given this curiosity, we had been approached by a number of corporations within the trade which we have now come to time period Consumer A, B and C. Two of the three needed to instantly have interaction in a modelling contract, and the third is within the strategy of contemplating such. We favor to have interaction in a modelling-first-step because it helps quantify parameters which may be particular to the consumer.

Modelling is a computer-based simulation of the efficiency of PyroGenesis’ proprietary plasma torches utilizing the precise parameters in a selected iron ore pelletization plant. The objective is to reveal the advantages of changing current fossil gasoline burners with plasma torches and/or determine unanticipated or hidden prices/uncomfortable side effects.

Thus far, between RISE and the modelling we have now finished, two of an important advantages demonstrated had been i) that changing fossil gasoline burners with plasma torches was a easy alternative, plug and play course of, and ii) that PyroGenesis’ proprietary plasma torches considerably scale back GHG emissions. There have been no unanticipated or hidden prices.

Moreover, we have now seen that our patented plasma torch know-how, not solely has financial and environmental benefits, however may additionally handle environmental insurance policies and laws being carried out worldwide. For instance, the European Union (EU), as a part of the EU’s 2030 climate and energy framework and contribution to the Paris Agreement2, has put in place laws to scale back emissions by not less than 40% by 2030.

In consequence, many corporations within the discipline are implementing enterprise methods directed at decreasing GHG emissions. For instance, a significant worldwide iron ore pelletizer has devoted approx. US $2B in direction of their objective of decreasing their carbon emission by 33% by 20303.

We imagine PyroGenesis is uniquely positioned to handle such alternatives.

Q4. Attention-grabbing…so changing fossil gasoline burners with plasma torches may have the ability to economically, and considerably, scale back the GHG emissions within the iron ore pelletization trade?

A. Appropriate.

Administration has internally estimated {that a} typical pellet plant producing 10 million metric tonnes of pellets yearly emits roughly a million metric tonnes of CO24. The full world pellet manufacturing of 400 million metric tonnes of pellets represents a possible marketplace for torch gross sales in extra of $10B worldwide. The world pellet trade generates about 40 million metric tonnes of CO2 yearly. The usage of plasma torches operating off a clear electrical grid would scale back these emissions considerably. For reference, 40 million tonnes of CO2 signify the mixed yearly emissions of 8.7 million US passenger autos5.

The influence of changing fossil gasoline burners with plasma torches not solely resonates within the iron ore pelletization trade, the place we’re patent protected, but in addition in different industries such because the aluminum, cement and glass industries, who’re additionally pressured to scale back GHG emissions.

Q5. What’s your enterprise mannequin for changing fossil gasoline burners with plasma torches, particularly within the iron ore pelletization trade which appears to be the lowhanging fruit?

A. It is a superb query.

Our providing is geared to handle the necessity to develop fossil gasoline free energy-mining-iron-steel worth chain and thereby present a foundation for governance and industrial methods for transformative change. Till just lately, the enterprise mannequin was merely to promote torches (with an inside goal of $3MM NPV per torch) with the recurring income derived from typical upkeep and spare components contracts.

We now have come to understand the economics of leasing torches as a substitute of an outright promote. This mannequin has clear benefits to each events; little-to-no CAPEX to the client, wholesome recurring income stream to the vendor. At this stage, we see this to be the quickest technique to develop this enterprise phase, and is a big strategy-shift for the Firm because it pertains to this providing, and which we count on will play a key function in our place/ongoing discussions with shoppers.

Q6. Wouldn’t this leasing mannequin be capital intensive?

A. Sure and no.

It’s capital intensive in fact, nevertheless, there are main leasing corporations we are able to workforce up with to offer this service. Given the dimensions and credit score worthiness of the consumer, along with a confirmed know-how, we don’t see this to be a problem. Had the consumer been small, their credit score worthiness not be conducive to leasing, or the know-how not be confirmed, then the burden can be on PyroGenesis to offer that capital, and we don’t see ourselves partaking in that kind of financing.

Q7. In closing, are you able to give us a standing/update on the prevailing agreements/contracts under dialogue?

A. Actually.

All of our tasks are on observe and progressing properly. As beforehand disclosed on September 1st, 2020, we have now obtained a draft contract from Consumer A, which continues to be within the last levels of completion. The truth that we obtained this contract from Consumer A, on the heels of a profitable modelling contract, who’s a big participant within the trade, clearly demonstrates the influence that PyroGenesis’ proprietary plasma torches are having on iron ore pelletization GHG discount methods. If signed, and efficiently deployed, one may count on they’d begin a program to exchange their fossil gasoline burners with PyroGenesis’ plasma torches. Though nothing is for certain, we’re positively heading in the right direction with Consumer A.

Consumer B has finalized their modelling contract, and like Consumer A, has moved to contract negotiations and requested a quote for an preliminary order of 4 torches which we have now just lately supplied.

Consumer C is transferring ahead as effectively. We’re assured that they are going to comply with enter right into a modeling contract earlier than an preliminary order of torches is positioned. We discover this to be probably the most prudent subsequent step.

We’re additionally in dialogue with potential shoppers in different industries to exchange their fossil gasoline burners with PyroGenesis’ plasma torches.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech firm, is a frontrunner within the design, growth, manufacture and commercialization of superior plasma processes and merchandise. The Firm supplies its engineering and manufacturing experience and its turnkey course of tools packages to prospects within the protection, metallurgical, mining, superior supplies (together with 3D printing), and environmental industries. With a workforce of skilled engineers, scientists and technicians understanding of its Montreal workplace and its 3,800 m2 manufacturing facility, PyroGenesis maintains its aggressive benefit by remaining on the forefront of know-how growth and commercialization. The Firm’s core competencies permit PyroGenesis to offer progressive plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering companies to the worldwide market. PyroGenesis’ operations are ISO 9001:2015 and AS9100D licensed. For extra data, please go to www.pyrogenesis.com.

This press launch incorporates sure forward-looking statements, together with, with out limitation, statements containing the phrases “could”, “plan”, “will”, “estimate”, “proceed”, “anticipate”, “intend”, “count on”, “within the course of” and different related expressions which represent “forward- wanting data” inside the which means of relevant securities legal guidelines. Ahead-looking statements mirror the Firm’s present expectation and assumptions and are topic to quite a lot of dangers and uncertainties that might trigger precise outcomes to vary materially from these anticipated. These forward-looking statements contain dangers and uncertainties together with, however not restricted to, the closing and timing of the Firm’s public providing. Such statements mirror the present views of the Firm with respect to future occasions and are topic to sure dangers and uncertainties and different dangers detailed from time-to-time within the Firm’s ongoing filings with the securities regulatory authorities, together with underneath “Danger Elements” within the Firm’s most up-to-date annual data type, which filings may be discovered underneath the Firm’s profile at www.sedar.com, or at www.otcmarkets.com. Precise outcomes, occasions, and efficiency could differ materially. Readers are cautioned to not place undue reliance on these forward-looking statements. The Firm undertakes no obligation to publicly replace or revise any forward- wanting statements both on account of new data, future occasions or in any other case, besides as required by relevant securities legal guidelines. Neither the TSX Enterprise Alternate, its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) nor the Toronto Inventory Alternate nor the OTCQB accepts duty for the adequacy or accuracy of this press launch.

SOURCE PyroGenesis Canada Inc.
For additional data please contact:
Rodayna Kafal, Vice President, Investor Relations and Strategic Enterprise Improvement,
Telephone: (514) 937-0002, E-mail: ir@pyrogenesis.com
RELATED LINK: http://www.pyrogenesis.com/

1 https://www.ssab.com/firm/sustainability/sustainable-operations/hybrit
2 https://ec.europa.eu/clima/insurance policies/methods/progress_en
3 http://www.vale.com/brasil/EN/sustainability/Pages/carbonneutral.aspx
4 M. Huerta, J. Bolen, M. Okrutny, I. Cameron and Okay. O’Leary, “Tips for Deciding on Pellet Plant Expertise”, Iron Ore Convention 2015 Proceedings, Perth, WA, July 13-15, 2015
5 https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle 



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