Pyro Green-Gas Signs Contracts Totaling $1.3 Million with Global Steel Company to Desulphurize Coke Oven Gas

Rhea-AI Summary

Pyro Green-Gas, a subsidiary of PyroGenesis Canada, has signed contracts worth $1.3 million with a major Indian steel company to desulphurize coke oven gas, converting it into reusable hydrogen. The unnamed client, with revenues exceeding $20 billion in 2023, is the second billion-dollar client for Pyro Green-Gas in India. This contract aligns with PyroGenesis' focus on reducing greenhouse gas emissions in heavy industries, particularly steelmaking, which accounts for 7-10% of global GHG emissions. The deal was anticipated in PyroGenesis' Q1 2024 financial outlook.

Positive

• Contracts worth $1.3 million with a global steel company.
• Client has revenues exceeding $20 billion in 2023.
• Second billion-dollar client for Pyro Green-Gas in India.
• Focus on reducing GHG emissions in steelmaking, which accounts for 7-10% of global emissions.
• Pyro Green-Gas' technology converts desulphurized gas into reusable hydrogen.
• Contracts align with PyroGenesis' strategic focus on emission reduction in heavy industries.

Negative

• Client's name withheld, potentially limiting transparency.
• Contracts' immediate financial impact on overall revenue not detailed.
• Potential risks of technology adoption and implementation delays.

Addresses another emission reduction need within steelmaking

MONTREAL, May 23, 2024 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX:PYR) (OTCQX:PYRGF) (FRA:8PY), a high-tech company (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 its subsidiary, Pyro Green-Gas Inc., has signed contracts totaling $1.3 million with a global steel company based in India, for the development and supply of technology to desulphurize and clean the gas that is released during the creation of metallurgical coke from coal. This announcement follows the Company’s projection in the Outlook section of its Q1 2024 financial results that these transactions were expected to be finalized in the near term. The client, with 2023 revenues exceeding US$20 billion, is one of the largest steelmakers in India and is now the second billion-dollar client that Pyro Green-Gas is doing business with in India. The client’s name is being withheld for competitive reasons.

Coke is a key fuel used within a blast furnace during primary steelmaking. Under the terms of these contracts, Pyro Green-Gas will provide engineering and mechanical solutions that will aid in the removal of hydrogen sulfide from coke oven gas during the coking process. The cleaned gas would then be converted into high value reusable hydrogen.

The steelmaking industry releases more than 3 billion metric tons of carbon dioxide annually and is responsible for between 7-10% of global GHG emissions, making steel the industrial material with the biggest climate impact.ⁱ

“This announcement highlights our organization’s continued commitment to providing sustainable solutions for heavy industry, this time via our wholly-owned subsidiary’s coke oven gas cleaning and purification solution,” noted P. Peter Pascali, President and CEO of PyroGenesis. “These contracts underscore once again, our strategic focus on addressing the emission reduction needs of large-scale industrial sectors. Given the size and breadth of the industry’s emission reduction requirements, steelmaking is a primary focus/target area for such advancements. By leveraging factory-ready technologies, our goal is to become a world leader in facilitating heavy-industry’s transition towards more environmentally friendly practices while at the same time recognizing their unique operational requirements.”

Pyro Green-Gas’ development of coke oven gas cleaning solutions are part of the Company’s three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. Coke oven gas cleaning solutions are part of the Company’s Energy Transition & Emissions Reduction tier, where fuel switching utilizing the Company’s electric-powered plasma torches, and gas cleaning and conversion technologies, helps heavy industry reduce fossil fuel use and greenhouse gas emissions.

About Pyro Green-Gas Inc. (formerly known as AirScience Technologies Inc.)

Pyro Green-Gas offers technologies, equipment, and expertise in the area of biogas upgrading, as well as air pollution controls. Pyro Green-Gas designs and builds: (i) gas upgrading systems to convert biogas to renewable natural gas (RNG); (ii) pyrolysis-gas purification; (iii) biogas & landfill-gas flares and thermal oxidizers; and (iv) purification of coke-oven gas (COG) (a by-product in the primary steel industry arising from the conversion of coal into coke) into high purity hydrogen, which is in high demand across the industry. Pyro Green-Gas is also known for its line of landfill gas flares which reduce greenhouse gas (GHG) emissions specifically from landfills.

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 plasma 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 “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management’s current beliefs, expectations, estimates and projections regarding future events and operating performance.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under “Risk Factors” in the Company’s latest annual information form, and in other periodic filings that the Company has made and may make in the future with the securities commissions or similar regulatory authorities, all of which are available under the Company’s profile on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect the Company. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, 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 OTCQX Best Market accepts responsibility for the adequacy or accuracy of this press release.

For further information please contact:
Rodayna Kafal, Vice President, IR/Comms. and Strategic BD
E-mail: ir@pyrogenesis.com

RELATED LINK: http://www.pyrogenesis.com/

ⁱ Can industry decarbonize steelmaking? (acs.org)
https://cen.acs.org/environment/green-chemistry/steel-hydrogen-low-co2-startups/99/i22

FAQ

What is the value of the contracts signed by Pyro Green-Gas with the global steel company?

Pyro Green-Gas signed contracts totaling $1.3 million.

Which industry is Pyro Green-Gas targeting with these contracts?

Pyro Green-Gas is targeting the steelmaking industry.

What is the purpose of the contracts signed by Pyro Green-Gas in May 2024?

The purpose is to desulphurize coke oven gas and convert it into reusable hydrogen.

What is the significance of the client for Pyro Green-Gas in India?

The client is a major steel company with revenues exceeding $20 billion in 2023 and is the second billion-dollar client for Pyro Green-Gas in India.

How does the contract align with PyroGenesis' goals?

The contract supports PyroGenesis' focus on reducing greenhouse gas emissions in heavy industries.

What percentage of global GHG emissions does the steelmaking industry contribute?

The steelmaking industry contributes between 7-10% of global GHG emissions.

What technology will Pyro Green-Gas provide under the new contracts?

Pyro Green-Gas will provide technology to desulphurize coke oven gas and convert it into reusable hydrogen.