HPQ Signs Joint Venture MOU for a Commercial Fumed Silica Plant with Strategic Partner

Executive Summary

• HPQ Silicon’s wholly‑owned subsidiary, HPQ Silica Polvere Inc., signed a non‑binding MOU with an undisclosed strategic industrial partner to form a joint venture that will build and operate a 1,000‑tonne‑per‑year commercial fumed silica plant.
• The proposed project is valued at approximately US $20 million (C$27.3 million) and would be designed and constructed by PyroGenesis Inc. using HPQ’s proprietary plasma‑based Fumed Silica Reactor (FSR) technology.
• If the joint venture proceeds, HSPI will receive royalties on each kilogram of fumed silica sold; plant commissioning is expected within ~12 months after definitive agreements, with a target to close those agreements by Q2 2026.

Key Details

• MOU Scope: Non‑binding memorandum outlining intent to create a jointly owned operating company for a commercial‑scale fumed silica facility (1,000 t/yr).
• Project Value: US $20 million (≈ C$27.3 million).
• Design & Construction Partner: PyroGenesis Inc., which is in the final stages of exercising an option to acquire a 50 % interest in HSPI.
• Strategic Partner: Identity confidential; has secured project financing and will fund construction.
• Commercial Model:
• Off‑take arrangement with strategic partner (terms pending).
• HSPI to receive recurring royalties per kilogram of fumed silica sold (price/kg not yet set).
• Technical Validation: Ongoing third‑party testing of pilot‑plant produced fumed silica; samples already delivered to the strategic partner and an independent U.S. specialty lab.
• Timeline:
• Definitive joint‑venture and related agreements targeted for execution by end of Q2 2026.
• Plant delivery and commissioning expected within ~12 months after definitive agreements.
• Technology Highlights (FSR):
• Single‑step, chemical‑free conversion of quartz to fumed silica.
• No hazardous reagents; eliminates toxic by‑products.
• Anticipated benefits: lower capital & operating costs, reduced CO₂ emissions and energy footprint, simplified logistics, safer production environment.
• Strategic Intent: Create a scalable commercial model that can be replicated at multiple sites, providing long‑term revenue exposure while keeping HPQ’s capital burden limited.

Notable Quotes

“Our objective is not simply to build one plant, but to establish a commercial model that can be reproduced,” – Bernard Tourillon, President and CEO, HPQ Silicon and HPQ Silica Polvere Inc.

All forward‑looking statements are subject to risks and uncertainties detailed in HPQ’s Annual Information Form on SEDAR+.