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PyroGenesis Announces MOU Toward Joint Venture for Commercial Scale Fumed Silica Plant

PYRGF
  • PyroGenesis Inc. and HPQ Silicon Inc.'s subsidiary HPQ Silica Polvere Inc. (HSPI) signed a non-binding memorandum of understanding to form a joint venture for a 1,000-tonne per year fumed silica production plant.
  • PyroGenesis holds an exclusive manufacturing arrangement to build the fumed silica reactor for US$20.0 million, with financing secured by the joint venture partner.
  • The identity of the joint venture partner remains confidential due to competitive reasons.
  • PyroGenesis is in the final stages of exercising an option to acquire a 50% interest in HSPI.
  • The joint venture will own & operate the system, selling fumed silica at market prices while HSPI charges a royalty per kilogram sold.
  • A joint venture partner has an implied off-take agreement with the new joint venture to justify its creation.
  • Finalization of the joint venture depends on confirming the chemical & compositional characteristics of fumed silica samples produced by the existing pilot plant.
  • Definitive agreements are expected to be completed & signed by the end of Q2 2026, though no certainty exists regarding the joint venture's formation or commercial viability.
  • The proposed plant is a commercial-scale version of the pilot plant designed by PyroGenesis, expected to be delivered within 12 months of the joint venture's formation.
  • The fumed silica reactor uses quartz as a raw material in a single, eco-friendly step that eliminates hazardous chemicals & reduces CO2 emissions.
  • Fumed silica serves as a thickening or anti-caking agent in diverse products including cosmetics, pharmaceuticals, batteries, & construction materials.
  • PyroGenesis holds rights to convert its annual royalty obligations into a 50% interest in HSPI & is the sole supplier of equipment for any commercialization of the reactor.