Q. Hello Peter,
Someone on Stockhouse is saying that even though the torches that will be used for iron ore pelletization are easy to install, they require a great deal of electricity. He claims that that is what is holding back these large companies. i.e., most of them don't have access to all that electricity.
Without revealing any secrets, can you say whether or not the torches do, in fact, require a major amount of electricity?
Thanks in advance for your answer. Snowdrift (see below)
Here's the post in question:
am a long who is working on adding to his position in the current situation.
I have some experience in the iron ore pelletizing business.
My reading of the current situation of torches for pelletizing is this:
The first multiple torch order will be for client B, 4 torches and will happen in the current quarter.
internal approvals require detailed estimates and that does take some time
these torches may be easy to install but they are hungry for juice, electrical juice, more than what most clients have available. Client B can feed 4 torches at this time. For more wait +/- 2 years. The electrical infrastructure is not plug and play, just the torch. Once that is sorted out we will see an order for 16 torches so he can complete one line. When that line is operating and all the bugs are worked out the remaining 5 lines will be undertaken.
I expect that most pelletizers are in a similar situation. The electrical investment will dwarf the torches alone, by many multiples. 500 kms of transmission lines through the Labrador wilderness will not happen overnight even if the power is waiting at the other end. Client B is lucky in that respect. The power is there and politicians are lining up to thump their chests when the transmission line construction is announced, probably before year end..
Most pelletizers probably do not have access to the quantities of "green" electricity required.
My advice to evertone is to calm down and take advantage of those who lack the patience needed in the situation.
A. Dear Snowdrift,
Good to hear from you again....and again with a tough one.
I think I answered this before...here is a refresher...and maybe with a bit more colour added:
Regarding the electrical installation of our torches, it is true that end-users may in some situations have to incur some additional costs if they plan to install torches at large scale**... but* this is not a new development and was known by all parties from the outset*. In cases of** large-scale implementation**, it is fully anticipated that there may be an investment required to progress to fossil free production of steel using plasma and we are moving forward. I would suggest that the thinking may be...maybe !!....that along the way a* lot of torches can be sold before we get to that tipping point and by that time any electrical requirements can be put in place...*
I do not think people fully understand the sheer magnitude of the problem facing the industry and how sweet a plasma torch solution is.
There are huge benefits in changing out their current fuel system with electricity...huge benefits...and dare I suggest that the current environment might be ripe to finance such a green change out???? Get my drift...? This also takes time to consider amongst all the moving pieces...
I believe that many clients are indeed lining up their financing sources to get the conversion process started, (like buying 1-4 torches as previously discussed). I also believe that as we start building out the torches the electrical needs will be addressed (interesting way to stimulate the economy and go green as well, no?).
Although this has its unique time line, we very quickly see the impact it would have to Pyro’s top line. Doesn’t take many torch sales to have that impact. Particularly when you consider that multiple plants seem to be lining up to do basically the same thing in unison. I would suggest that even initial torch orders, when combined, could be staggering.
I could be entirely off base and something may come up that no one around the table anticipated, but right now everything is lining up as it should. Personally, I do not see any real alternative option if one is going to change out diesel burners with a true, cradle-to-grave, green technology.
Hope that helps,
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MONTREAL, Sept. 27, 2021 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (NASDAQ: PYR) (TSX: PYR) (FRA: 8PY), a high-tech company (hereinafter referred to as the “Company” or “PyroGenesis”), that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions to reduce greenhouse gases, is pleased to announce today that, further to its Q2 2021 financial results press release (section Outlook) dated August 16th, it has signed joint venture and license agreements (both agreements collectively the “JV”) with a leading residue processor (the “Partner”) to transform dross residues into high value chemical products.
“This is a very interesting addition to PyroGenesis’ offerings as it fits perfectly into PyroGenesis’ existing portfolio of waste management services offered to the aluminum industry, at a time when aluminum prices are making our core technology even more valuable. This JV not only solidifies our Drosrite™ offering, but it is also able to address a downstream problem that is increasingly plaguing the industry; namely, how to handle dross residues which are becoming more and more regulated and banned from landfills,” said Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “This is the ultimate coffee & donut strategy where, with very little additional effort, we are able to sell, alongside Drosrite™, a separate compelling green solution, which also further secures Drosrite™’s commercial competitiveness.”
This 50:50 JV will be geared towards building, installing and operating dross residue valorization facilities worldwide. To this effect, PyroGenesis secured, through the JV, an exclusive license to a patented and novel technology which is expected to convert dross residues into high value chemical products. Under the terms of the JV, the exclusive access to the technology initially applies to projects in North America and in the Gulf Cooperation Council nations. Upon successful completion of the first project, the exclusive access to the technology will expand to include, for all sense and purposes, the majority of the world. These dross residues are currently either being (i) landfilled (which is increasingly becoming banned by regulators) or (ii) sold as cheap flux to the cement industry.
“We are increasingly finding that these residues are being stored pending a viable solution or are being treated with a very expensive technology to make them landfill acceptable,” said Mr. Alex Pascali, Senior Business Development Manager of PyroGenesis. “We find there is a significant opportunity to be able to offer, through the JV, an economically and environmentally sound solution to a serious problem facing the industry. Today’s announcement effectively secures PyroGenesis’ existing market position by building upon the Drosrite™ advantage and tapping into unseen value in the waste stream.”
The first plant, which will be built after securing a contract to process dross residues, has already been identified within the Gulf Region and discussions to secure and process those residues have already taken place. This facility is expected to be designed to process approximately 25,000 tonnes of aluminum dross residues per year and convert these aluminum dross residues into high margin products with an expected selling price of between USD$200 to $450 per tonne.
Aluminum dross is typically comprised of two elements: (i) aluminum metal (60%), and (ii) aluminum oxides (40%). PyroGenesis’ DROSRITE™ system can recover up to 98% of the aluminum metal fraction. It is this remaining 40% aluminum oxide (dross residues) material that is often landfilled or sold as a cheap additive. Following today’s announcement, it is expected that these residues could now be processed by the JV, and converted into high margin products, such as aluminum sulfate and ammonium sulfate, thereby transforming a waste stream and unlocking a potentially significant new revenue stream for the Company.
“We believe that this announcement is a game-changer for the aluminum industry, as it allows PyroGenesis to offer a complete on-site dross processing service delivering zero-landfill/reduced carbon solutions while at the same time increasing clients’ profitability. We believe that this has never been done before,” said Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “By working closely with our clients, we have been able to witness firsthand the challenges facing their industry, and more importantly speak to operators and plant managers with respect to these issues. This provides us with invaluable insight upon which we can pitch engineering solutions as we have today. With this unique partnership, the JV enables PyroGenesis to include, amongst its offerings, another game changing environmentally friendly solution that converts residues destined for landfill. PyroGenesis is increasingly becoming a green solution to the aluminum industry. We expect to expand on this advantage both within the aluminum industry and, within other industries which are being faced with similar challenges.”
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, providing an impressive return on investment. The system has been designed to process and recover valuable metal such as aluminum, zinc and copper from dross