PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR)
(NASDAQ: PYR) (FRA: 8PY), a high-tech company (hereinafter referred
to as the “Company” or “PyroGenesis”), that designs, develops,
manufactures and commercializes advanced plasma processes and
sustainable solutions which are geared to reduce greenhouse gases
(GHG), is pleased to announce that the Company has been selected by
a an international producer of magnesium metal (the “Client”), to
test PyroGenesis’ zero-emission plasma torches as part of their
process for transforming mining waste and recycled minerals into
high-value metal. At this time, the name of the Client remains
anonymous for confidentiality reasons.
The contract outlines two separate initiatives,
occurring at different points in the process. First, at the request
of the Client, PyroGenesis has developed a method to clean and
decontaminate particulate matter produced during primary magnesium
production. The cleaning of this by-product – a hydrocarbon – is
key to the Client’s strategy to produce magnesium using the most
sustainable methods available. This will allow the Client to
achieve their goal to scale their operations while, at the same
time, decreasing their environmental impact. The expectation is to
conduct internal tests to remove any remaining uncertainties in the
proposed concept, after which PyroGenesis will complete the
detailed design to allow the implementation of the solution by
PyroGenesis on-site at the Client’s facility.
The second initiative is to process the metal
waste stream known as dross, for the purpose of recovering valuable
metal. Currently, as with many magnesium producers, the Client’s
dross is cleaned for storage, or disposal, with no efforts made to
salvage remaining metals. With PyroGenesis’ expertise in recovering
high-value metal from dross in other industries (such as aluminum),
the Company believes it can provide significant value to the Client
while decreasing their environmental impact.
Metal recovery from dross is not widespread in
the magnesium industry, due to the complexity of the process and
the inherent challenges of working with magnesium – a very
combustible and volatile metal that is highly reactive to oxygen
(which is why magnesium powders are used in pyrotechnics and
fireworks). PyroGenesis believes it has the solution to the
specific challenges posed by magnesium, potentially opening up a
large opportunity for growth.
PyroGenesis has already received a small
purchase order for the cleaning and decontamination initiative,
with a Q4 2022 targeted end date for the conceptual testing. The
dross recovery initiative is still in the planning stages.
“This Agreement continues to underscore the
applicability, and timeliness, of PyroGenesis’ offerings within the
primary and secondary metal production industries,” said Mr. P.
Peter Pascali, CEO and Chair of PyroGenesis. “After our
groundbreaking efforts in introducing our state-of-the-art
technology to the iron and steel industry – the world’s most used
metal – and our rapid growth in doing the same for the aluminum
sector – the world’s second most popular metal – we are now
targeting sector solutions for magnesium, the third most-used
metal1.”
“This is another example of how success begets
success. Our recent successes have not been lost on others with
similar challenges in other industries and sectors,” continued Mr.
Pascali. “Our focus on targeting the largest commercial
opportunities to solve some of the world’s most pressing
environmental, engineering, and energy problems in heavy industry
with our unique solutions, is designed as a sustainable model for
the Company’s long-term growth. With escalating requirements for
ultra-light weight materials and products, combined with an ongoing
supply pressure for magnesium pushing the demand and price of
magnesium to new highs2, we are positioning PyroGenesis to capture
a foothold in yet another sector that is vital to global industrial
growth.”
Magnesium is the world’s third-most used metal
in construction. Magnesium’s popularity stems from the fact that it
has the lowest density of all the metals used, and is the lightest
structural metal known3: 75% lighter than steel, 50% lighter than
titanium, and 33% lighter than aluminum. Magnesium alloys have
traditionally been driven by aerospace and medical industry
requirements for lightweight materials, but with the shift to
electric vehicles and the growth of lightweight consumer
electronics, magnesium demand continues to increase. Perhaps most
importantly, magnesium is a key component in aluminum production,
used in combination with aluminum to create stronger alloys. With
the aluminum sector expected to rise by 80% over the next two
decades4, magnesium supply is expected to be further pressed.
Complicating magnesium supply is that with up to 90% of magnesium
produced in China, and with energy availability under pressure in
China due to soaring energy costs plus a government-mandated carbon
reduction initiative leading to power rationing, supply shortages
of magnesium were seen throughout 20215. This highlights the
importance for North American magnesium producers to find
technologies to help increase their output and reduce their
environmental impact.
About PyroGenesis Canada
Inc.
PyroGenesis Canada Inc., a high-tech company, is
a leader in the design, development, manufacture and
commercialization of advanced plasma processes and sustainable
solutions which reduce greenhouse gases (GHG), and are economically
attractive alternatives to conventional “dirty” processes.
PyroGenesis has created proprietary, patented and advanced plasm a
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 m2
and 2,940 m2 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. For
more information, please visit: www.pyrogenesis.com.
This press release contains certain
forward-looking statements, including, without limitation,
statements containing the words "may", "plan", "will", "estimate",
"continue", "anticipate", "intend", "expect", "in the process" and
other similar expressions which constitute "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking statements reflect the Corporation's current
expectation and assumptions and are subject to a number of risks
and uncertainties that could cause actual results to differ
materially from those anticipated. These forward-looking statements
involve risks and uncertainties including, but not limited to, our
expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to
research and development, the impact of competitive products and
pricing, new product development, and uncertainties related to the
regulatory approval process. Such statements reflect the current
views of the Corporation with respect to future events and are
subject to certain risks and uncertainties and other risks detailed
from time-to-time in the Corporation's ongoing filings with the
securities regulatory authorities, which filings can be found at
www.sedar.com, or at www.sec.gov. Actual results, events, and
performance may differ materially. Readers are cautioned not to
place undue reliance on these forward-looking statements. The
Corporation undertakes no obligation to publicly update or revise
any forward-looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Neither the Toronto Stock Exchange, its
Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) nor the NASDAQ Stock
Market, LLC accepts responsibility for the adequacy or accuracy of
this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Rodayna
Kafal, Vice President, IR/Comms. and Strategic BDPhone: (514)
937-0002, E-mail: ir@pyrogenesis.comRELATED LINK:
http://www.pyrogenesis.com/
1 Magnesium, The Essential Chemical Industry
Onlinehttps://www.essentialchemicalindustry.org/metals/magnesium.html
2 Aluminum Makers Sound the Alarm About U.S. Magnesium Shortage, By
Joe Deaux October 14, 2021
https://www.bloomberg.com/news/articles/2021-10-14/aluminum-makers-sound-the-alarm-about-u-s-magnesium-shortage3
Magnesium, Encyclopedia
Britannicahttps://www.britannica.com/technology/magnesium-processing4
World aluminium industry must cut emissions by 77% by 2050 -IAI, by
Eric Onstad, Editing by Nick Zieminski, March 2021
https://www.reuters.com/world/china/world-aluminium-industry-must-cut-emissions-by-77-by-2050-iai-2021-03-16/5
Magnesium Still Considered a Risky Market; Supply Challenges Loom:
2022 Preview, By Cristina Belda, Ruby Liu, Fola
Malomohttps://www.fastmarkets.com/insights/magnesium-still-considered-a-risky-market-supply-challenges-loom-2022-preview
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