PyroGenesis (PYR) Signs JV Agreement to Build and Operate Plants to Convert Aluminum Dross Residues into High Value Chemical Products
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PyroGenesis Canada Inc. (http://pyrogenesis.com) (NASDAQ: PYR) (TSX: 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 to reduce greenhouse gases, is pleased to announce today that, further to its Q2 2021 financial results press release (section Outlook) dated August 16th, it has signed joint venture and license agreements (both agreements collectively the “JV”) with a leading residue processor (the “Partner”) to transform dross residues into high value chemical products.
“This is a very interesting addition to PyroGenesis’ offerings as it fits perfectly into PyroGenesis’ 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 Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “This is the ultimate coffee & donut 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 JV will be geared towards building, installing and operating dross residue valorization facilities worldwide. To this effect, PyroGenesis secured, through the JV, an exclusive license to a patented and novel technology which is expected to convert dross residues into high value chemical products. Under the terms of the JV, 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 Mr. 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’ 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 USD$200 to $450 per tonne.
Aluminum dross is typically comprised of two elements: (i) aluminum metal (60%), and (ii) aluminum oxides (40%). PyroGenesis’ DROSRITE™ system can recover up to 98% of the aluminum metal fraction. It is this remaining 40% 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 JV, and converted into high margin products, such as aluminum sulfate and ammonium sulfate, 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 Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “By working closely with our clients, we have been able to witness firsthand 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’ DROSRITE™ system is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. PyroGenesis’ 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 metal such as aluminum, zinc and copper from dross.
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