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Feature article February 23, 2018:


PyroGenesis new generation of 3D metal powder production poised to skyrocket valuation


PYR.V is the Company that invented plasma atomization, the current gold standard for Titanium-metal powder used in 3D printing, and it is now becoming a manufacturer capable of customizable narrow particle size distribution -- MAJOR upside revaluation is at play.



PyroGenesis Canada Inc.

(TSX-V: PYR) (US Listing: PYRNF) (Frankfurt: 8PYF)


Share data, Capitalization, & Corporate info

 Shares Outstanding:  ~118 million

 Recently Traded: CDN$0.61/share (TSX-V: PYR)

 52 Week High/Low: $0.98 / 0.19

 Current Market Capitalization: ~$72 million Canadian

 Corporate Website:


PyroGenesis is active and on the cusp of breakout on four key plasma solution fronts, each with company-maker potential.


Near-term (12 month) price target for PYR.V: $3.00+/share



Valuation Commentary: PyroGenesis Canada Inc. (TSX-V: PYR) (OTC: PYRNF) (Frankfurt: 8PYF) is arguably the most advanced plasma technology Company in the world, with one of the largest concentration of plasma expertise under one roof working out of a ~40,000 sq. ft. facility in Montreal, is considered the go-to source for the US Military when an application requires a plasma solution, it has 54 patents (issued or pending), including being the inventors of 'plasma atomization' which is considered the current gold standard for production of Titanium-metal powder used in additive manufacturing (3D printers). The Company's latest innovations/plasma solutions in chemical warfare agent destruction, metallurgy, and especially additive manufacturing, are all revolutionary, each on the cusp of exponential growth, and position the share price of PYR.V at a major inflection point, presenting opportunity for astute shareholders. It appears only PyroGenesis' new generation plasma atomization system, able to produce any size cut, will be able to cater to what is setting up to be explosive growth in future 3D metal printing.



PyroGenesis has been advancing plasma solutions for over 20 years, it currently has delivered Plasma Arc Waste Destruction Systems (PAWDS) for two US aircraft carriers and its technology is built into the design of future aircraft orders. Its trusted relationship with the military (which has the very highest DD/vetting standards) speaks to PyroGenesis' credibility and reliability -- something that gives it a leg-up as it commercializes/monetizes the latest applications of its technologies. Only recently has a confluence of opportunity materialized that will see demand grow exponentially for new applications of its technologies on four key fronts:


A) Military/environment: Besides another PAWDS aircraft order expected for 2018 and additional land based system sales, the big catalyst in this sector will be orders for special forces as they are currently spending ~US$100 million testing PyroGenesis' mobile plasma chemical warfare agents destruction system. DARPA is funding part of this development and given the size of total investment just for testing, it is likely to translate into several orders near-term at US$6M a system, just for starters.


Figure 2. (right) Seen on the bottom left is PYR.V's mobile unit that is being tested by the special forces, able to vaporize agents on site.


Table 1. (left) Summary of environmental projects that should contribute to Company growth near-term.


B) Mining metallurgy DROSRITETM: PyroGenesis Canada Inc. (PYR.V) invented DROSRITETM, a process for reclaiming dross (waste) onsite at smelters without salt -- sales are gaining traction and exponential growth appears in store.  Its first customer has just ordered another system and is in negotiations to buy more, also numerous other groups have requested demos that should convert to sales. This is a ~$400 million market potential in Aluminum production alone, then there is zinc, and copper.


C) Mining metallurgy PUREVAPTM solar grade silicon production: PYR.V has ~$8M contract with HPQ Silicon Resources Inc. to develop PUREVAPTM process for it, able to turn quartz into 6N (99.9999% purity) solar grade silicon in one step. HPQ will be positioned to singlehandedly disrupt the silicon market pricewise once the contract is complete -- PyroGenesis gets 10% royalty upon commercialization.


Figure 3. (above) - Illustration. Bench test success has validated that HPQ PUREVAPTM Quartz Reduction Reactor purifies in one step while transforming quartz into silicon metal. A 200 TPY pilot plant is almost completed, operational in 2018. Commercial operation is budgeted to start in 2019. On December 21, 2017 PyroGenesis announced that HPQ Silicon has signed a Development Agreement with solar silicon specialist Apollon Solar, a world leader in silicon manufacturing, further validating the PURVAPTM technology.


Figure 4. PYR.V plasma atomization tower.

D) Metal Injected Molding (MIM) powder production for additive manufacturing (3D Printing): PyroGenesis' new generation plasma atomization process can do what no one else can and will give it significant advantage in the marketplace; able to produce any narrow particle size with no waste, and can be adapted for different metals. If all goes according to plan, the marketplace will see PyroGenesis quickly capture market share, filling the immediate need for a credible 2nd producer of Ti-metal powder, and put a target on its back in the process, able to readily scale-in systems to service this explosive market. GE has effectively cornered the current market with old IP/technology that PyroGenesis invented (but sold before 3D metal printing evolved and became in demand). On October 23, 2017 the Company announced ramp-up of its first plasma atomization reactor is complete, the system is fully functional, ready to operate 24/7, and the Company has added a second shift in anticipation of large scale commercial order(s). Several highly motivated big potential customers have already signed NDAs and are prequalifying product now (see November 6, 2017 news "PyroGenesis Signs Non-Disclosure Agreement with Rolls-Royce plc for Additive Manufacturing Powders" and December 4, 2017 "PyroGenesis Signs Non-Disclosure Agreement with Second Global Aircraft Engine Manufacturer"). This move into powder production appears to be the beginning of what is shaping up to be a massive growth story that will richly reward shareholders astute enough to establish a long position now. Each plasma atomization production tower PYR.V brings online, at current commodity pricing, should be capable of generating ~$12M in revenues per year (with very healthy margins) -- if the Company conservatively brings say 16 towers online over the next couple years that would represent LESS THAN 6% of the market demand. For those familiar with the shifting fundamentals afoot in the marketplace, PYR.V is poised to dwarf conservative projections as it appears to be the only entity with technology able to cater to the explosive growth in future 3D metal printing (see overview/analysis section further below). 


PYR.V currently has a market cap of ~C$72 million (~115 million shares outstanding (~131M fully diluted) recently trading at ~C$0.61/share), miniscule compared to what is shaping up. Forward discounted metrics of revenue dictate PYR.V trade at a significantly higher valuation, the share price is apt to rise in spurts as developments/news catalysts unfold; a near-term upside share price revaluation closer to $3/share for PYR.V is in order to better reflect the reality of what is unfolding, on its way to even higher valuations from there.


PYR.V on solid footing -- The Company has started to cash flow positive on an adjusted EBTDA basis in 2017 from its core/traditional business lines alone; revenue is up in Q1 (+67%), Q2 (+165%), Q3 (+7%) over the same periods the year prior (click here to view latest news regarding financials). Its gross margins are 57%, and this is from its core business incorporating the expenses of ramping up the additive manufacturing business (the cost of the tower, the salaries, and the analytical equipment -- the Company still made 48% Gross Margin in Q2 & 57% in Q3. The backlog of signed contracts from its core business is $7.41 million (which is respectable as it had been running $5M - $6M/year for the past 3 years). Its pipeline (defined as contracts it is in serious negotiations with (e.g. Aircraft Carrier PAWDS, mobile tactical chemical warfare agent destruction units, and DROSRITETM) is ~$21 million. Comforting to know that the Company is increasingly diversified and can weather an attack on its new metal powder production business line should such an unlikely scenario develop, unlikely as the demand for what PYR.V offers is just too large and the Company is working with next level/next-generation technology that should see the financial picture explode for the Company over coming years.

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Overview of why PyroGenesis Canada Inc. (PYR.V) has potential for >10X market cap upside revaluation


1) Metal Injected Molding (MIM) powder production for additive manufacturing (3D Printing) - 100% Owned


The Company's first next generation plasma atomization tower is operational and filling prequalification orders. PyroGenesis has a near-term conservative goal of being a credible 2nd producer of Ti-metal powder.


The Back-Story

How PyroGenesis came to invent plasma atomization, and the original IP ends up in the hands of GE...

Figure 5. Scanning electron microscope 400X of PyroGenesis powders (45μm) -- small, pure, spherical, metal powders.


Several years ago PyroGenesis was developing light-weight armor for NATO and in that process it needed small spherical titanium powders that were uniformly the same size. The powder particles required to be the same size in order to melt them and spray onto a surface -- as the powders dropped through the plasma flame they would only splat on the surface if they were precise in size; if the powders are too big they would go through the flame, if the particles are too small they bounce off the flame. It was difficult to get specific powders in the marketplace so the Company decided to make titanium metal powders for itself using thermal plasma and it patented the process. During the NATO contract the Company also found buyers for the powder in the biomedical industry which loved the powders for biomedical implants (e.g. titanium knee implants; they liked how the powders flowed into the molds and compacted tightly). When the NATO contract ended there was insufficient market to take up the slack and keep PyroGenesis' interest, this was before 3D metal printings time/growth spurt, and it made better sense to sell the rights.


In 2007 AP&C bought the rights and also received a 5 year non-compete clause from Pyrogenesis. AP&C eventually had to seek creditor protection. When AP&C came out of creditor protection 3D printing started to have a need for these exact powders. Arcam was a client of AP&C, Arcam made one of the first 3D metal printers and decided to purchase AP&C out from bankruptcy for C$35M in 2013. Under Arcam AP&C became the dominant supplier of titanium powders to metal printers, using technology PyroGenesis invented. It does not seem that AP&C has improved much, if any, on the technology since it was first incepted, there was no need to as the economics made sense for them to do nothing and they have had no pressing need to change, plus they likely do not possess the plasma expertise to do any major changes.


After the non-compete was up PyroGenesis surveyed the market and at first decided it would take the conservative route of making plasma atomization towers (which make powder) for someone else, instead of Pyrogenesis itself getting into the powder manufacturing business. Within 3 months PyroGenesis received an order for 10 systems for US$10M and it was going to make ~50% margin, it was a sweet and easy contract to fill. Before fulfilling the contract PyroGenesis' engineers began to toy with improvements to its original design and soon realized it was in the wrong business, instead of selling the towers it made better economic sense for it to consider getting into the powder manufacturing business; one system, operating flat-out, could make $12 million a year with 40% to 70% margins (depending on grades) selling powders. The Company got out of its contract at the beginning of 2016 and immediately the market thought PyroGenesis was nuts, cancelling out on a $10+M contract, and that perhaps something was wrong. Just the opposite, however it was not apparent to the market that PyroGenesis was right until September 2016 when news broke of GE purchasing Arcam for $696 million. Arcam is the Company that manufactures 3d metal printers and wholly-owns the powder manufacturer AP&C which uses the first generation plasma atomization technology that PYR.V developed. That $696M valuation was in part due to GE believing it had locked up the market on the gold standard of Titanium powder for metal injecting molds (3D printing). There began a consolidation wave in the market and put the spotlight on the value of being a player in the markets.


Many printer manufacturers, distributors, and end users are eager to see PyroGenesis come into the market as consolidation has disrupted the supply chain -- there is room for a credible second supplier of Ti-metal powder.



Figure 6. (above) CONSOLIDATION & DISRUPTED SUPPLY CHAIN -- AP&C was purchased by Arcam in 2013 and became the dominant supplier of Ti64. Many suppliers of 3D printers are now buying their powders from Arcam - a competitor. GE purchased Arcam (AP&C) for US$696M. GE’s competitors now need to find other powder producers. GE also purchased ConceptLaser for US$599M. Other consolidation of note; Carpenter recently bought Puris.

Essentially GE thought they had a leg up on the market by its acquisition of AP&C via Arcam. GE caught everyone with their pants down, it secured what they thought were the only entity that could make this type of powder, spent a billion+ dollars buying printer companies, and have effectively cornered the market. Competition to GE has been very nervous, there is little doubt PyroGenesis will do VERY well -- not only can PryoGenesis do what AP&C can do, it can do it much better. GE’s competitors are reluctant to buy off of AP&C as they are essentially telling GE what they are doing through a trade of information (e.g. particle size, amounts of powder), and even if there is not a trade of information they are giving their competitor profits that they may not want to give them. Companies that purchased from AP&C will naturally gravitate to PyroGenesis as the process used to made the powder are similar (via plasma atomization) and it is easier to qualify product that was made using the same process. Only AP&C and PyroGenesis use plasma atomization, the very few other niche metal powder producers (e.g. Tekna) that are out there use alternate processes with limitations that would rule them out for most printer manufacturers, end users, and distributors.


Growth of 3D printing, and growth of metal powder demand - Clearly PyroGenesis is entering at an opportune time.


Respected independent market experts Wohlers Associates have noted (2016 Report) the cumulative number of 3D printing machines sold worldwide (for all types) will rise from 3,017 in 2015 to 14,379 in 2020, and metal powder demand will rise from 1,810,200 kg in 2015 to 8,625,000 kg in 2020.


Figure 7. (left) - Wohlers Report numbers.


New metal composites could propel PyroGenesis to the very fore of the industry: The above projections are based just on expansion of what is happening today -- the sandbox that PyroGenesis is playing in is very large, right now we are talking just about one corner; titanium powders. However important to note is that PyroGenesis has recently successfully switched-out titanium wire for another metal in its plasma atomization tower; the Company filled a test batch order for inconel powder. The future is obviously VERY bright for PyroGenesis in Ti-metal alone, however the Company is able, on paper, to make all sorts of composites using plasma atomization, and composites are the next new frontier for where 3D printing is going. It went from plastics, it’s going to metals, the next evolution is composites. ‘Composites’ is a mixture of material. Let’s say you want to make an aluminum nitrate composite; on paper PYR.V scientists believe they can take an aluminum wire, fuel the plasma torch with nitrogen gas, and combine the two in-flight to make a composite. This is something no one has ever looked at with plasma, PYR.V is very comfortable experimenting in that space. Beryllium for example is a very tough metal, it so happens to be used as a coating on re-entry vehicles, like missiles for the US military. If you could make beryllium powder and run it through a 3D printer you could save the US military millions of dollars – PYR.V on paper can do this.

Understanding particle size use in the marketplace for Ti-metal production, and limitations of old powder manufacturing technology. PyroGenesis has a major advantage:



PyroGenesis has invented an adjustment to its plasma atomization process which increases the production and narrows the particle sizes that come out of each production run.


Figure 8. (left) - Particle size distribution, current old technology of AP&C.


In the past, PyroGenesis' old production run (what AP&C is using) is a broad spectrum; at the edges there is waste, and in the middle the particles that are made are used by either one type of printer or another type of printer. 90% of printers use powders between 15μm and 106μm; either A) between 15μm and 45μm, or B) between 45μm and 106μm. So if you had an order from customer A you had to do a production run to satisfy customer A and then you were left with a whole bunch of another powder size and you had to find a market for the unwanted size. So this is a dilemma if you want to go into full production. PyroGenesis can produce any narrow particle size it wants, it can do so for any customer without waste, this will have more impact on the market than its original plasma atomization patent did. The original patent has allowed 3D printers like EOS, ConceptLasers, Arcam, to print, because before plasma atomization these type of powders weren’t readily available.


New ultra-fine market: Note the ultra-fine 0 to 15μm off-cuts, which were traditionally not used in printers, there are now printer manufacturers (e.g. Desktop Metals) that are looking to make a new generation of mass printing using this specific powder range (this powder range flows like water). There is discussion in 3D printing circles that this market segment is waiting for an entity capable of reliably filling the 0 - 15μm range in size. PyroGenesis is the only one that can do it this way.


Compare the old tech production distribution (seen above) to what PyroGenesis can do now (seen below):






PYR.V's new process narrows the particle size distribution and increase the production rate -- a beautiful system that can cater to different clients.


Figure 9. (above) PyroGenesis' new plasma-based atomization system capable of custom narrow distribution - It appears only Pyrogenesis' new generation plasma atomization system, able to produce any size cut, will be able to cater to what is setting up to be explosive growth in future 3D metal printing.


Additive Manufacturing Milestones/Press Releases:

Where things sit now: The markets have opened up to PYR.V’s strategy, the GE acquisition of Arcam shows that PyroGenesis’ powders have an impact on what is taking place in additive manufacturing. However the understanding of just how big this is going to be for PyroGenesis has not yet sunk in, when the first contract is announced we expect the valuation to rise dramatically.


In March-2017 PyroGenesis had the first of its new generation plasma atomization systems up and running. The system was in ramp-up, testing, and experimentation/innovation mode from March until October-2017, ensuring all the parts are communicating properly, working properly, angled properly. On October 23, 2017 the Company announced ramp-up of its first plasma atomization reactor is complete, the system is fully functional, ready to operate 24/7, and the Company has added a second shift in anticipation of large scale commercial order(s). The Company did not expect interest in its powders until ramp-up was complete, however people in the industry knew that PyroGenesis were the inventors of plasma atomization, a name PyroGenesis coined in its original patent, it is a household name now. There is a buzz developing, "The inventors are back, they are producing powder, and they are going to be as good or better than AP&C" -- so far PyroGenesis has received six sample orders and so far it has delivered four. Also during this ramp-up period it has signed six NDAs, and it is currently negotiating two NDAs with major competitors to GE. PyroGenesis never expected to get this type of interest until at least a year later, in 2018, its budget called for the Company buying sieving and analytical equipment next year – turns out PYR.V needs it RIGHT NOW! There is a lot of good pressure on the company. PyroGenesis is currently on a schedule of four days of production and one day of innovation/refinement (getting the production level higher, narrowing the particle size, getting the oxygen content down – all these things no one has ever done before). PyroGenesis is going to be selling into the market with a spec sheet that is better than anyone in the world; customized particle size, at higher production rates, with no waste. The current business strategy is to be a second supplier, but it appears conversation are underway that will see PYR.V become much more than that.


There is a need for PyroGenesis’ powder, a large contract could easily dwarf production from the one first tower, so the Company is making arrangements now to cut down the turn-around time, to ~3 to 4 months by ordering long lead-time components, for commissioning of the next three tower systems. PyroGenesis will find willingness in its clients to negotiate financing of the capital costs of its new towers by forward selling production (e.g. if a buyer pays PYR.V say $25/kg up front in advance, PYR can give a matching discount off the end sale price, offering pricing at say $350/kg instead of $375/kg). Clients signing NDA's now understand the Company's position, they like the fact PyroGenesis has been around for a while, they like the Company's  relationship and credibility from its arrangement with the US Military. If a client says they want production that can take up several systems, PYR can assure them a fixed time schedule.


Potential for spin-off of the 3D metal powder production division


PyroGenesis will be very popular as the Company announces NDAs converting to contracts. The markets may not understand all the other business lines the Company is engaged in, thus PyroGenesis investors would be best served (maximize shareholder value) by spinning the unit off as a standalone entity, with its own people, its own product, and it could get funding for that as/if needed. At that time PYR.V would likely have a direct dividend to existing shareholders with maybe a concurrent financing. The landscape is changing rapidly and there are a lot of developments to accommodate that will make matters that much more powerful for PyroGenesis' new metal-powder unit. The fact that GE has acquired Arcam, and PyroGenesis has pre-order samples being vetted by major players that should translate into orders, this will all increase the value. Obviously once the first order(s) (long-term contract) comes in the valuation will be larger. Spinning-off has its advantages; it will be a clearly identifiable entity that can be JVed with or acquired, it can attract its own investment and probably have a much higher multiple rather than being stuck inside PyroGenesis proper. The Company has coined the name ‘Pyrogenesis Additive’ and it is already starting to work and function internally as a separate Company; separate employees, a separate accounting system, and the Company is renovating part of its facilities so it can have its own area.


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Below is expanded insight on PyroGenesis Canada Inc. (TSX-V: PYR) (OTC: PYRNF) and its other business lines.


     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer 

Recent Company news of significance:


• February 9, 2018 "PyroGenesis Announces Closing of Private Placement".


February 1, 2018 "PyroGenesis Provides Update on DROSRITE™ Business Line; Poised to be Significant Contributor in 2018".


January 30, 2018 "PyroGenesis Announces Receipt of Military Contracts for $280,000; The Exercise of $2,182,741 in Warrants and Options, and an R&D Tax Credit Financing of $537,400".


January 15, 2018 "PyroGenesis Submits Gen 2 PUREVAP™ Progress Report to HPQ Silicon Resources Inc.; Confirms Higher Yield and Rate".


December 21, 2017 "PyroGenesis Announces that HPQ Silicon Signs Development Agreement with Solar Silicon Specialist Apollon Solar".


December 13, 2017 "PyroGenesis Announces Receipt of New Military Contract for Can$325,000 Bringing Total Orders Received to Over Can$1.8 Million".


December 4, 2017 "PyroGenesis Signs Non-Disclosure Agreement with Second Global Aircraft Engine Manufacturer".


November 28, 2017 "PyroGenesis Announces Q3-2017 Results: Cash Flow Positive on EBITDA (Modified) Basis; Revenues Increase by 7%; Positive Gross Margin of 57%; Current Backlog $7.41MM".


November 27, 2017 "PyroGenesis Announces Receipt of $508,000 Down Payment on Previously Announced Sale of Second DROSRITE™ Furnace System to North American Automobile Parts Manufacturer".


November 16, 2017 "PyroGenesis Announces $1.02 Million Sale of 2nd DROSRITE™ Furnace System to North American Automobile Parts Manufacturer".


November 13, 2017 "PyroGenesis Additive to Reveal Completion of Powder Performance Characterization Results by Independent Parties at FormNext".


November 6, 2017 "PyroGenesis Signs Non-Disclosure Agreement with Rolls-Royce plc for Additive Manufacturing Powders".


November 1, 2017 "PyroGenesis Submits Final Gen 1 PUREVAP™ Report to HPQ Silicon Resources Inc.".


October 26, 2017 "PyroGenesis Announces Grant of Two (2) US Patents for a Total of 54 Patents owned (Issued and Pending)".


October 23, 2017 "PyroGenesis Announces Completion of Ramp-Up Phase of 1st Plasma Atomization System".


September 29, 2017 "PyroGenesis Comments on Stock Trading Activity; Provides Company Snapshot/Update".


September 19, 2017 "PyroGenesis Announces Commencement of Advanced Second Phase Lab Scale Testing with HPQ Silicon Resources Inc., Totalling CAN$170,000 which has been Received".


September 18, 2017 "PyroGenesis Additive Confirms Production, and Orders, for Both Ti-6Al-4V Grade 23 & Grade 5 MIM Cut".


September 12, 2017 "PyroGenesis Additive Announces Significant Developments to its New Plasma-Based Atomization Process; Higher Production Rates, Higher Yields, Narrower Particle Size Distributions, Lower Costs".


August 28, 2017 "PyroGenesis Announces Q2-2017 Results: Cash Flow Positive on EBITDA (Modified) Basis; Revenues Increase by 165%; Gross Margins Increase to 48%; Current Backlog $7.64MM".


August 14, 2017 "PyroGenesis Additive Announces the Development of New Plasma-Based Process to Produce Metal Powders; Production of MIM Cut in Quantity; Ramp-Up Update".


July 17, 2017 "PyroGenesis Announces Receipt of CAN$445,950 Under Existing Military Contract; Plus CAN$300,000 of Warrants exercised".


July 11, 2017 "PyroGenesis Announces Receipt of $230,168 Contract for Support During Testing of its Chemical Warfare Agent Destruction System Using Real Chemical Warfare Agents".



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2) DROSRITETM - 100% Owned


DROSRITE™ recovers metal from dross (a waste generated in the metallurgical industry)


Features & Benefits of DROSRITETM include:

  • More than 10% higher metal recovery than with third party treatment.

  • Lower operating cost than using a subcontractor.

  • Recyclable non-hazardous residue with no atmospheric emissions – zero landfill potential.

  • Lower carbon footprint, ideally for large greenhouse gas emitters such as smelters.

  • With in situ treatment, DROSRITETM serves as an excellent tool to control skimming practices.

Figure 10. Dross piled up in front of smelter.

The DROSRITETM process can be applied at smelters for aluminum, zinc, or copper. Currently the Company's first sale has been in the aluminum industry.


Dross is a problem for smelters, it forms at the top of hot batches where the metal comes in contact with oxygen, it is an unfavorable contaminated waste product. The traditional method of dealing with dross is to scoop it off the top and set aside to cool down. Recognizing that that the waste still has valuable metals in it, the dross is sent offsite to be reclaimed using salts, the process occurs offsite as salt cannot come in contact with the main smelter batch as salt would ruin the whole batch. The current traditional method of dealing with dross involves cooling, transport, heating, processing, cooling and transporting back – its laborious and costly.


PyroGenesis has developed a system that can be slapped right up against the smelter, take the dross hot, process it hot, and send the metal back hot. PyroGenesis can do this under $100/t compared to $250/t to $350/t using conventional methods. That alone is impressive. On top of that PyroGenesis is getting between 10% to 15% better recovery.


PryoGenesis has its first DROSRITETM client up and running with a full commercial system operational at an aluminum smelter in Mexico, at a subsidiary of an American mining Company. The Company in Mexico purchased the system after successfully testing out a demo unit. So impressed is the first client that they have ordered a 2nd (see related November 16, 2017 news "PyroGenesis Announces $1.02 Million Sale of 2nd DROSRITE™ Furnace System to North American Automobile Parts Manufacturer") and indicated they require two additional systems, currently PyroGenesis is in negotiations for the other systems, negotiating pricing and trying to work out a recurring revenue stream/maintenance contract.


A potential new client from the Middle East has since requested and received a demo unit, they have indicated a need for 4 systems and negotiations on specs and pricing are underway. The near-term pipeline (not yet signed contracts, but likely to occur) for DROSRITETM is ~b/w US$5M and $9M between the Mexican group and the Middle Eastern group.


PyroGenesis has also sent a demo unit to a big group in India, the business case for India is very compelling as they don’t even try to recover from dross, right now they are carting it off to the dump.



Table 2. (above) DROSRITE potential market, based on PyroGenesis' first client is an Aluminum casting producer.

TM is a commercial system that is gathering traction now, if you look at the above target market in the grid, there is Aluminum, Copper, and Zinc divided into primary, secondary, and tertiary producers – that’s nine different segments. PyroGenesis' existing Mexico client is a tertiary aluminum producer in the automotive sector, so PyroGenesis' market penetration strategy from here is to leverage the success of that client and approach other producers in the same sector and sell the same thing to them. The group in the Middle East is a primary smelter. Primary smelters alone worldwide represent a realistic potential market of $280M to PyroGenesis. It is estimated that all the aluminum production categories would represent $400M, plus there is Copper and Zinc on top of that.


PyroGenesis should be able to methodically advance the business division toward a snowball effect of managed growth. The growth potential in India alone over the coming years has the very real possibility of exponential growth. PyroGenesis has recently hired a new sales person for this job beginning in 2018, their job will be to visit potential clients and let them know the success of the first client (results speak for themselves), plus the Mexico client has agreed to act as a site-visit demonstration for interested prospects.


Excerpt of February 1, 2018 news release regarding DROSRITE:


PyroGenesis Provides Update on DROSRITE™ Business Line; Poised to be Significant Contributor in 2018


MONTREAL, Feb. 01, 2018 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. ( (TSX-V:PYR) (OTCQB:PYRNF), a high-tech corporation (the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, provides herein a general update on its DROSRITE™ business line.

Mr. P. Peter Pascali, President and CEO of PyroGenesis, provides this update in the following Q&A format.  The questions are for the most part derived from inquiries received from investors, analysts, and potential customers:

Q. For those that are new to the story, could you please describe to us what DROSRITE™ is and some of its many advantages?

A.  Most certainly.

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, thereby providing an impressive return on investment.

With metal manufacturers, such as aluminum, being subjected to increased pressure from regulatory authorities to eliminate landfilling of hazardous salt cakes from traditional recovery operations, combined with tight operating margins, PyroGenesis’ DROSRITE™ system is able to (i) increase metal recovery from waste, without producing any hazardous by-products, while at the same time (ii) reducing operating costs.

In short, we are (i) salt-free, so no hazardous by-products, (ii) we can process the dross cheaper than conventional methods, and (iii) we have demonstrated higher metal recovery rates. Who could ask for more?

Q. Given the above, the DROSRITE™ business line must be getting quite a bit of attention these days.  What is happening?

A.  It certainly is.  We announced last November the sale of a second commercial DROSRITE™ furnace system to a North American automobile parts manufacturer which was quite significant for three reasons.  First, it was the second commercial DROSRITE™ furnace system sold to date. Second, and more importantly it was the first re-order of a DROSRITE™ system from an existing client, and last but not least, we managed to secure a higher price for the second system which was essentially a carbon copy of the first (Can $1.02 Million vs. Can $600,00 for the first), which underscores what we have said all along, which is that PyroGenesis’ DROSRITE™ system provides significant value to end-users.

Since that time, we now have visibility on an additional 6-10 systems to be sold and delivered in 2018. 

Q. When you say “visibility” what do you mean exactly?

A.  By “visibility” I mean that we are over 90% confident that we will sign and deliver on those contracts in 2018.

Let me explain where the confidence comes from:

  1. We are currently discussing the purchase of an additional two (2) systems with our existing client.
  2. In the Middle East, we have demonstrated the system and are currently in the process of closing on the equivalent of three (3) systems.
  3. Our demonstration system is currently in India on contract for paid-for-demonstrations, and if successful could result in 1-4 system orders. We are booking additional paid-for demonstrations in India as we speak.


  1. Our demonstration system is fully booked until September.

…and this is just coming out of the box in 2018 with no additional efforts.  If you recall we announced late last year that we hired a fulltime business development Account Manager whose role is exclusively to secure DROSRITE™ system sales. He is aggressively targeting both primary aluminum smelters in Asia and the Middle East where the market is estimated to be in excess of 1 million tonnes of dross1, as well as tertiary casting producers worldwide. These two markets alone represent a potential market for DROSRITE™ systems numbering in the hundreds of units. 

Q. What does this mean for PyroGenesis?

A.  The answer to that question is what is newsworthy.

There is a high probability that PyroGenesis will be profitable in 2018 from DROSRITE™ system sales alone, and not just from a cash flow basis.

Q. Are you sure you want to make that claim, that PyroGenesis will be profitable in 2018?  You got burnt once before doing that.

A.  That’s a valid point, but in all fairness when I did go out on a limb, that one time, and predict profitability, it was when we were manufacturing powder production systems catering to the Additive Manufacturing Industry.  That all changed when we subsequently decided to get out of that business and get into powder sales which, in retrospect, was the correct choice…although it took GE’s acquisition of Arcam, 1 year later, for the market to understand our strategy.

But your question is a good one and yes, I stand by the claim that PyroGenesis should be profitable in 2018.  I am confident for a number of reasons: As you can see DROSRITE™ is laying down a firm base of orders.  When you factor in the backlog of signed contracts which are expected to be accounted for as revenues in 2018 (approximately $4MM of the $7MM in backlog) then I think you can see how 2018 looks like it will be profitable.  This is quite conservative as it does not account for any revenue contrition from either the US Military (even though it looks like an aircraft carrier will be ordered in 2018), or powder sales.

Q. Any challenges for the DROSRITE™ business line?

A.  There are always challenges, it would be foolish to say it is ever clear sailing.  Right now we could use a second demonstration system for sure.  As we noted above, the current demonstration unit is booked to September in India/Asia.  If we had a second system on hand we could start booking paid-for demonstrations in North America as well. We have had to postpone potential contracts due to this delay.

Rest assured we are in the process of addressing this need.

Q. Any closing comments?

A.  The important take-a-way, and one that management only came to realize recently, is that the demand for PyroGenesis’ DROSRITE™ system is gaining traction faster than expected.  The DROSRITE™ business line’s contribution to PyroGenesis is becoming more significant and as such de-risks, to some extent, the rest of the Corporation’s activities.

2018 is shaping up to be a very exciting time for both DROSRITE™ and PyroGenesis. here for full copy from source



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3) PUREVAPTM - IP owned by HPQ Silicon Resources, PyroGenesis receives 10% Royalty


Developed by PyroGenesis, PUREVAPTM is a patent pending one-step proprietary process that uses a plasma arc within a vacuum furnace to produce high purity metallurgical grade silicon and solar grade silicon from quartz. It is expected that the silicon grades produced by PUREVAPTM could be used for different applications, including solar energy.

Features & Benefits of PUREVAPTM:

  • One-step direct transformation process.

  • Lower cost for producing silicon compared to current practices.

  • Lower CO2 than current processes.

  • Remove impurities: Phosphate, Potassium, Magnesium, Zinc, Calcium, and other elements.

PyroGenesis is being paid ~$8 million to develop the PUREVAPTM process (to convert quartz to solar grade silicon) for the benefit of HPQ Silicon Resources, however important to note is that PyroGenesis retains IP ownership of any other application the process can be applied towards.


HPQ Silicon Resources is looking to take the process to commercial production and PyroGenesis will receive a 10% royalty off all future revenue generated by the process, with no waiting period. This arrangement is risk-free for PyroGenesis and will be particularly lucrative should HPQ Silicon Resources execute according to its business plan, not only will HPQ Silicon Resources shareholders do very well, PyroGenesis will also.


We urge the reader to take the time to review HPQ Silicon Resources corporate presentation and plans as the projections are impressive. The process is so revolutionary that it could result in the pricing of solar grade silicon to drop as much as 90%.


Click here to see HPQ Silicon Resources' presentation regarding its HPQ PURVAPTM process, the silicon market, and its very impressive plans.


Latest news from PyroGenesis regarding developments surrounding PURVAP:


January 15, 2018 "PyroGenesis Submits Gen 2 PUREVAP™ Progress Report to HPQ Silicon Resources Inc.; Confirms Higher Yield and Rate".


December 21, 2017 "PyroGenesis Announces that HPQ Silicon Signs Development Agreement with Solar Silicon Specialist Apollon Solar".


Excerpt from the Q&A section of the release (answers provided by PyroGenesis' CEO):


Q: HPQ Silicon announced Monday1 their agreement with Apollon Solar (“Apollon”), a solar silicon specialist. What does this mean for PyroGenesis specifically and the project in general?

A: This move, to bring Apollon into the HPQ-PyroGenesis fold, is in one word: ingenious. Not only does it demonstrate the validity and merit of our project, but the development agreement, in our opinion, not only increases the probability of success, but decreases the time frame in which success may be obtained.

Q: How is that?

A: To answer your question one must first understand who Apollon is and what they have achieved to date.

First, Apollon is a private French company which, as one of the world’s leaders in renewable energies, has developed processes to make high purity silicon metal for photovoltaic conversion for use in high performance solar cells…

Q: So, they are competitors to PyroGenesis?

A: Absolutely not! They complement us and that is the genius of this partnership.

Apollon is an expert in the manufacture of silicon wafers for use in solar panels. Apollon’s unique knowledge and experience with silicon, silicon wafers, and solar panels has enabled it to understand what works and what doesn’t, and they have been extremely successful at this. In fact, Apollon was the first to manufacture entirely monocrystalline Czochralski (“Cz”) ingots made with 100% solar grade silicon metal refined metallurgically (“SoG Si UMG”). Which in layman’s terms translates simply to the fact that they were one of the first to manufacture silicon wafers using an upgraded metallurgical grade (“UMG”) silicon metal as feedstock. In addition to this achievement, Apollon has also managed to obtain conversion efficiencies of over 20% in solar panels using these same wafers. In fact, Apollon holds a world record conversion efficiency of 21.1% with wafers made from UMG silicon metal used as feedstock.

So, in short, Apollon has managed to use UMG silicon metal as feedstock, manufacture silicon wafers, introduce them into solar panels, and get world record conversion rates.

Q: And….?

A: And we can supply Apollon with the required feedstock, and therein lies the beauty of this arrangement. Apollon has proven that UMG silicon metal can be used as feedstock to make silicon wafers for solar panels. Our results to date show that PUREVAP™, at a bench test scale, could convert quartz into the UMG silicon metal which can be used as feedstock to manufacture Apollon’s wafers for solar panels.
Q: What else can you say about Apollon and the team?

A: It is important to realize, that in all this, Apollon is actually the first independent party to validate the innovation potential of the PUREVAP™ process. When reviewing the PUREVAP™ process, Apollon concluded that:

  • PUREVAP™ is a new metallurgical process (patent pending held by HPQ) for the production of solar grade silicon metal, and that it is a unique process, based on the innovative plasma technology that is at the heart of PyroGenesis’ expertise, and

  • The successful commercial application of the PUREVAP™ process will lead to the production of solar quality silicon at significantly lower costs compared to those of competing process technologies (examples include Siemens chemical process, Elkem Solar, Silicor Materials, etc.)

Without a doubt, future collaboration between HPQ, Apollon and PyroGenesis should increase the probability of success of the project. In this sense, Apollon brings two important elements to the team:

  • Firstly, the ability to achieve a higher level of vertical integration (from the extraction of raw quartz (SiO2) by HPQ all the way to the production of solar cells), and

  • Secondly, many years of innovative research and development work in the field of solar silicon and solar panels which complements the work already underway.

Q: From a practical perspective, how do you expect these benefits will be integrated into the project?

A: In the short term, we expect Apollon to provide immediate input into, and to help accelerate, the development phase of GEN-2 as well as to de-risk the design and testing of the pilot phase of the project (GEN-3). In the longer term, Apollon’s knowledge and expertise in solar panels will not only lend itself well to the integration of silicon produced by the PUREVAP™ technology into solar panels, but could eventually lead to HPQ becoming a vertically integrated producer of such solar panels.
Q: Conclusion?

A: Once again, we are impressed with the strategies and forward thinking of the HPQ team. They have done their research and positioned themselves to be a significant force within their space. We are happy to be engaged in this project.



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4) Military/environment - 100% Owned


Plasma Waste Processes

PyroGenesis has developed a suite of highly advanced, yet easy-to-operate processes which integrates well with the 3Rs, but which maximizes the energy and/or resource recovery from a vast range of waste streams generated by municipalities or by industry.


Figure 11. PRRS

PRRS - A Plasma Waste-to-Energy Solution


Proven out by the US Department of Defense (DoD), the game-changing PRRS harnesses the power of plasma to provide industry, municipalities and the defense sector with a comprehensive, all-encompassing solution to waste management, while producing much-needed clean energy to meet our growing needs. PyroGenesis' team of technology professionals has integrated flexibility and versatility into the PRRS platform, giving it the ability to both process virtually any form of waste, and to generate clean energy and marketable construction materials, completely eliminating the need for landfill.

Features & Benefits of the PRRS include:

  • Available in capacities ranging from 1 to 100 metric tons per day per module.

  • Processes a wide variety of wastes (MSW, hazardous, biomedical, etc.), transforming it to electricity, steam, hot water, and/or liquid fuels.

  • Inorganic waste feed transformed to an inert, non-toxic glassy slag, a building material for construction.

  • A one-stop, waste-to-energy solution for remote communities.

  • Reliable, easy-to-operate and maintain with minimal manpower requirements.

Using the proprietary two-step plasma-based technology, operating at extreme temperatures under gasification conditions, the PRRS transforms waste to syngas, a gaseous fuel which can then be used to make electricity, heat or liquid fuels, all to the end-user’s exacting requirements. Using PRRS, the inorganic fraction of the waste generates a glassy slag which is inert and non-toxic, and has been demonstrated to be effective as a building material for construction.


Figure 12. PAWDS Marine, image of client installation. Handles shipboard waste and sludge oil.

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PAWDS Marine


Recognized by the US Navy as the premier shipboard waste processing technology in the market, the Plasma Arc Waste Destruction System (PAWDS) is the world’s most compact, easy-to-operate, high temperature, plasma-based waste treatment system. With one-button rapid start-up and shutdown capabilities, PAWDS effectively destroys combustible wastes such as paper, plastics, food, oily rags, as well as waste oil, all with minimal segregation. Developed by our team in partnership with the US Department of Defense, PAWDS has been specified into all of the Gerald R. Ford Class supercarriers, and has been ordered by their contracted shipyard for their first two ships in this class: the CVN-78 USS Gerald R. Ford and the CVN-79 USS John F. Kennedy.

Available at its standard 200 kg/hour capacity, but adaptable to various means of energy recovery and easily scalable both upward for cruise ships and downward for frigates and destroyers, PAWDS has received from Lloyds Register MED Type Approval for the processing of solid waste and sludge oil, confirming its stature as THE standard in the market.

Features & Benefits of PAWDS for marine use include:

  • Very compact design: Impressive space savings for newbuilds and retrofits.

  • Fully automatic / sailor friendly one man operation.

  • Rapid start-up and shutdown (no refractory/brick).

Bags of waste are fed to a shredder, followed by a mill, transforming the feedstock into a powder, or lint-like materials. These tiny particles (or waste oils) are fed continuously to our patented plasma-fired eductor and chamber, which completely obliterates the waste. The offgases are immediately quenched to prevent dioxin and furan formation, and subsequently cleaned and exhausted to the atmosphere.


Figure 13. PAWDS Land, idea for remote community waste, mining camp waste, military camp waste, solvents & chemical waste, waste sludge oil from IC engines.

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Already the US Navy’s choice for the Gerald R. Ford Class of aircraft carriers, the Plasma Arc Waste Destruction System for Land (PAWDS-Land), being the world’s most compact, easy-to-operate, high temperature, plasma-based waste treatment system, is perfectly suited to meet the demands of remote communities and camps (mining, military). Open pit burning generates toxins in the air; open field dumps generates toxins in the water table, and an engineered sanitary landfill is extremely costly in these locations. Developed by our team in close collaboration with the US Department of Defense, PAWDS-Land cost effectively destroys community-generated wastes, while generating excess heat which can be available for heating buildings or for greenhouses, and all the while exceeding local environmental regulations.

Available at its standard 200 kg/hour capacity, PAWDS can be turned on and off rapidly in minutes, unlike standard incineration technologies which need to be kept running to work its best. As such, with its flexibility, PAWDS can accommodate 4 hour, 8 hour or even up to 24 hour operation, all depending on the community’s needs or requirements.

Features & Benefits of PAWDS-Land include:

  • Compact design: five 20-foot or three 40-foot rugged-design containers needed for up to 5 metric ton per day operations.

  • Fully automated system: one button start-up.

  • Rapid start-up and shutdown up and running within minutes.

  • Safe design.

  • Heat can be captured and reused by the community.

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SPARC - Waste Streams include; Ozone Depleting Refrigerants (ex. R11, R12, R22), Ozone Depleting Substances (ex. Halons), Super Greenhouse Gas Refrigerants (ex. R134a, R141), Fluorinated Hydrocarbons.


Evolving from PyroGenesis' plasma platform developed for the US Military, SPARC is a highly effective, patented process for the complete destruction of ozone depleting substances and other environmentally noxious chemicals. SPARC is the latest innovation from our team of engineers, scientists and technicians.

Refrigerants and other fluorinated chemicals (CFC, HCFC, HFC, PFC) that often have very high global warming potential (GWP) are fully cracked and safely eliminated using high temperature steam plasma. Already deployed for a major Canadian refrigerator recycler, SPARC can also be used to generate offset credits in the regulated or voluntary carbon markets.

Features & Benefits of SPARC include:

  • More than “seven 9s” destruction efficiency ( > 99.99999% with R12).

  • Treats R11, R12, R22, R134a, R141, halons and other PFCs.

  • Available in capacities of up to 50 kg per hour.

  • Lowest operating cost, with a quick return on investment (ROI).

  • Small plant footprint.

Operating with steam plasma as a heat source, the waste is fed continuously to the two-zone plasma reactor. With a reactor temperature of over 1300°C, the steam plasma hydrolysis reaction quickly and efficiently breaks down the waste into carbon dioxide (CO2) and water (H2O). The gas stream is then rapidly quenched to prevent any reformation of dioxins and furans. Acid gases generated by the process are readily scrubbed out of the stream and neutralized, resulting in an offgas that far exceeds environmental regulations.


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Tactical PACWADS - Destruction of Chemical Warfare Agents (ex. Sarin (GB), Mustard (HD), and VX).


Situations that have recently developed, particularly in Syria, have brought to the forefront the striking need for a safe, versatile, and efficient mobile system, deployable on a moment’s notice to eliminate chemical warfare agent (CWA) stockpiles. In fact, the worldwide inventory of CWAs, both home and abroad, poses an immense risk to military personnel and nearby civilians, either from accidental release or from the CWAs entering into the enemy’s hands.

Using as a platform the US Navy-selected and team-developed PAWDS process for waste destruction on board the Gerald R. Ford Class aircraft carriers, the Tactical Plasma Arc Chemical Warfare Agents Destruction System, or Tactical PACWADS is designed to rapidly and safely destroy a wide range of chemical warfare agents (CWAs), as well as their precursors reagents in the field. As opposed to the risky proposition of transporting enemy CWAs to another location, putting soldiers and civilians at risk to ambush and to the catastrophic release of these highly toxic chemicals, the Tactical PACWADS would be used in situ to destroy CWAs such as Sarin (GB), Mustard (HD), and VX.

Using a 5000°C plasma torch, the compact Tactical PACWADS reactor and associated self-contained gas cleaning equipment, will allow the warfighter to rapidly set up two readily-deployable, mobile 20 foot containers and safely destroy up to 2 barrels per day of CWAs.


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PAGV - Bottoms and Fly Ash from MSW Incinerators, Haz./Biohaz. Waste Incinerators, Asbestos Waste.


As the forerunner for our game-changing PRRS waste-to-energy technology, the Plasma Arc Gasification and Vitrification (PAGV) system eliminates future legacy issues for operators of incinerators with a simple process for inerting their grate and fly ash and turning it into a useful construction material. Municipalities, along with managers of incineration operations for industrial, hazardous, biomedical, and animal (slaughterhouse) waste, all can profit from the PAGV by turning their otherwise hazardous ash into a vitrified slag, a glassy, non-toxic, non-leaching material which can be used in wide-ranging applications as aggregate asphalt and flooring, as a partial replacement for cement in concrete, and even as jewelry. Asbestos waste from decommissioning operations is also an excellent use for the technology.

Features & Benefits of the PAGV include:

  • Available in capacities ranging from 1 to 250 metric tons per day per module.

  • Processes grate ash and fly ash generated from a wide variety of waste combustion processses (MSW, hazardous, biomedical, etc.), as well as other inorganic waste streams such as asbestos from decommissioning and site clean-up operations.

  • No liabilities from improper ash or asbestos disposal.

  • Reliable, easy-to-operate and maintain with minimal manpower requirements.




PyroGenesis' Technical Leadership, Management, and Governance

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful multifaceted technology Company:


P. Peter Pascali, Founder, Founder, President and CEO, Director

 • Founded PyroGenesis.
 • 12+ years in investment banking in NYC.


AlanCurleigh, Chair of the Board, Director

 • Former Chairman of the Canadian Commercial Corporation (“CCC”).


RobertRadin, Member of the AuditCommittee, Director

 • US Army Major General (Retired).


ChristopherTwigge-Molecey, Dr., Director

 • Past board member of the Hatch Group of Companies, Engineering consultants.
 • 40 years experience in Metallurgy and Engineering Consulting.


AngelosVlasopoulos, CPA, CA, Chair of the Audit Committee, Director

 • 18+ years financial experience.
 • President and CEO of Aeson Leeds Inc.


Note: This article is not intended to be a complete overview of PyroGenesis Canada Inc. or a complete listing of PyroGenesis' projects. The reader is urged to contact the subject company, the following sources for information have been identified:


For more information contact Pyrogenesis' head office at: Ph (514) 937.0002


Company's web site:   SEDAR Filings: URL



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Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification.



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