- PyroGenesis Canada (PYR) has provided an update to investors about its iron ore pelletisation plasma torch business
- The company’s plasma torches are marketed as a viable solution for reducing greenhouse gas emissions in the iron ore pelletisation process
- PyroGenesis has been approached by several potential clients, who are interested in the company’s product and its industry-wide impact
- The company claims its various plasma torch projects and client contracts remain on track
- PyroGenesis Canada is up 8.79 per cent and is currently trading for $3.59 per share
PyroGenesis Canada (PYR) has provided an update to investors about its iron ore pelletisation plasma torch business.
Pelletisation is the process of converting iron ore into concentrated balls or pellets, in preparation for shipment. The iron ore is significantly cheaper to transport when in this form and is a convenient feedstock for blast furnaces.
However, the conventional method for converting the ore into pellets requires heat provided by fuel oil or natural gas burners. Both of these options are detrimental to the environment, as is the production of greenhouse gases which emanate from the combustion in the burners.
PyroGenesis markets its plasma torches as a viable solution to this issue, since they utilise renewable electricity instead of fossil fuel burners. As such, the replacement of conventional pelletisation methods with the plasma torches could substantially reduce greenhouse gas emissions within the industry.
The company first had the opportunity to assess the plasma torch’s performance against traditional fossil fuel burners last year. In January 2019, PyroGenesis was contracted to provide a 900 kilowatt plasma torch to RISE Energy Technology Centre AB, from Sweden.
After nine months of testing, the company successfully completed its contract with RISE, and released the results. The iron ore pelletisation industry has responded positively to the prospect of a more eco-friendly alternative to its current methods.
Since then, PyroGenesis has been approached by several potential clients, who are interested in the company’s product and its industry-wide impact. The company has successfully completed a modelling contract with Client A and subsequently received a draft contract from them.
Client B has finalised its modelling contract, moved on to contract negotiations, and requested a quote for an initial order of four plasma torches. PyroGenesis claims Client C is also progressing nicely, and may enter a modelling contract before placing an initial torch order.
PyroGenesis Canada is up 8.79 per cent and is trading for $3.59 per share, as of 11:51am EST.