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PyroGenesis confirms receipt of milestone payment of $2.4M

MONTREAL — PyroGenesis Canada Inc., a high-tech company that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG), confirms that it has received the project milestone payment of approximately $2.4 million.

This payment was triggered by the recently announced delivery of four (4) 1-MW plasma torch systems to a major international iron ore producer, Client B, for use in the Client’s iron ore pelletization furnaces – a key upstream part of the steelmaking process. The Client now has all major components related to the Company’s plasma torch systems on site at one of their large, integrated iron ore mining and processing locations. This allows for the installation and trials to proceed at the Client’s discretion, the conclusion of which is expected by the end of Q2 2023.

The name of the Client – a multi-billion-dollar international producer of iron ore who is undertaking the testing of plasma torches to replace fossil fuel-burners as part of its iron ore pelletization process – has been kept confidential for competitive reasons.

Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation, and providing an essential feedstock for blast furnaces. In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging). The combustion of fossil fuels in the burners results in the production of GHG, mainly CO2. Plasma torches, by contrast, utilize renewable electricity and offer an environmentally attractive alternative to fossil fuel burners. As previously disclosed, PyroGenesis has the process patent to replace fossil fuel burners with PyroGenesis’ clean plasma torches in the iron ore pelletization industry, thereby reducing GHG emissions.