PyroGenesis signs $871k (U.S.) plasma torch contract

Mr. P. Peter Pascali reports PYROGENESIS SIGNS $1.2 MILLION ENERGY TRANSITION CONTRACT WITH CEMENT INDUSTRY CUSTOMER PyroGenesis Inc. has signed an $871,000 (U.S.) ($1,198,000 (Canadian)) contract with a European cement industry customer for the supply of a plasma torch system for a calcination furnace. The client's name is being withheld for competitive and confidentiality reasons at the request of the customer. Project highlights: Purpose: using plasma torches instead of fossil-fuel-based heating sources for a cleaner, more sustainable and more efficient method for high-temperature calcination; Scope: supply of proprietary plasma technology for integration into a calcination furnace, used as part of the cement production process; Timeline: delivery to client is targeted for first quarter 2026; Strategic impact: supports end customer and cement industry goals to reduce greenhouse gas emissions and produce cleaner, greener cement. As outlined in the outlook section of PyroGenesis's first quarter 2025 earnings report (press release dated May 13, 2025), PyroGenesis was in negotiations with a European entity to use plasma torches in a calcination process related to cement production. A calcination furnace (also known as a calciner) can be used for various steps in the cement process, including for high-temperature processing of limestone, quicklime and trona, to produce lime, clinker and soda ash, all of which are key components of cement, contributing to its binding properties, strength and durability. Fossil fuel combustion and carbon dioxide released during the calcination process are major sources of emissions in the cement industry. Approximately 40 per cent of greenhouse gas emissions in cement production come from the combustion of fuel needed to generate the heat required in the calcination process. "The cement industry faces a critical need to transition to lower-emission energy sources," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Transforming production methods and energy sources is not only a logical step for improving efficiency across operations, but also essential for meeting the cement industry's long-standing emission reduction and net-zero commitments. Replacing fossil fuels in calcination furnaces -- a process responsible for 40 per cent of the sector's greenhouse gas emissions -- with PyroGenesis's plasma torches could drive substantial decarbonization and efficiency gains across the industry." Industry and market context: Cement production is one of the most energy intensive of all manufacturing industries, accounting for nearly 5 per cent of total global energy consumption. Cement production accounts for 7 per cent of total GHG emissions and up to 9 per cent of human-caused CO2 emissions. Forty per cent of cement industry emissions come from fossil fuel combustion to power calcination. The Global Cement and Concrete Association targets a 20-per-cent reduction of carbon dioxide per metric tonne of cement and a 25-per-cent reduction of CO2 per cubic metre of concrete by 2030 compared with 2020. The GCCA also calls for complete decarbonization by 2050. Plasma-based furnace heating offers a cleaner, scalable, emission-free and more efficient alternative to traditional fossil-fuel-based process heating, aligning with energy transition and decarbonization mandates across multiple heavy industries. Continuing power advances in PyroGenesis plasma torches from 900 kilowatts in 2020 to 20 megawatts in 2024 open doors to more intensive industrial applications and higher heat industries. About PyroGenesis Inc. PyroGenesis, a high-technology company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases 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-square-metre and 2,940-square-metre 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. PyroGenesis's shares are publicly traded on the Toronto Stock Exchange in Canada, the OTCQX in the United States and the Frankfurt Stock Exchange in Germany. We seek Safe Harbor.