PyroGenesis, Constellium sign furnace plasma torch deal

Mr. Peter Pascali reports PYROGENESIS SIGNS ADDITIONAL CONTRACT WITH CONSTELLIUM TO ADVANCE ALUMINUM FURNACE ELECTRIFICATION USING PLASMA TORCH TECHNOLOGY PyroGenesis Inc. has signed an additional contract with Constellium, one of the world's largest aluminum transformation and recycling companies, for the purchase of plasma torch technology and related peripheral components to be implemented in an aluminum remelting furnace as part of a broader decarbonization effort. The financial terms of the contract will remain confidential. This contract marks the launch of phase 2 of the project -- industrial implementation -- as part of the two companies's collaboration agreement of April, 2024. The collaborative agreement outlined Constellium's stated plan to use PyroGenesis plasma torches and associated processes as potential replacement heating sources for aluminum remelting furnaces in Constellium's aluminum cast houses. Project highlights Purpose:  explore PyroGenesis's all-electric plasma torches, among other alternative technologies, to implement cleaner, more sustainable methods for high-temperature industrial heating, reducing carbon emissions and enhancing energy efficiency in aluminum processing Scope:  integration of proprietary plasma technology in a demonstrator furnace at a Constellium casthouse Timeline:  commissioning expected by Q1 2026 Strategic impact:  supports Constellium's road map to reduce GHG (greenhouse gas) emissions As previously reported (PyroGenesis's April 10, 2024, news release), PyroGenesis and Constellium signed a letter of intent to implement a demonstrator plasma-heated furnace in one of Constellium's casthouses, as part of their decarbonization strategy. The initial project was to be implemented in two phases, the first of which corresponded to an engineering and feasibility study. The second phase, aiming at industrial execution, has now begun with the signing of this plasma torch contract. This project phase is estimated to be completed by Q1 2026. "The aluminum industry represents a significant growth area for PyroGenesis, supported by market leaders like Constellium -- companies that are embracing innovation and responding positively to our engineering expertise and industry-leading technology," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Streamlining energy use by electrifying more processes across industrial operations only makes sense when quality and economics remain intact, as is the case with PyroGenesis's plasma torches. Constellium is demonstrating bold leadership in embracing cleaner, more efficient energy pathways. Together, we're taking a major step toward electrifying an energy-intensive segment of aluminum manufacturing." "We are pleased to take this next step with PyroGenesis to advance the maturity of plasma torch technology for aluminum remelting," said Ludovic Piquier, senior vice-president, manufacturing excellence and chief technical officer of Constellium. "This collaboration reflects our commitment to decarbonizing our operations through innovative, sustainable solutions." Industry and market context Primary aluminum production is an energy intensive process that is typically produced using electricity; secondary aluminum production, using recycled aluminum, requires 95 per cent less energy to produce. According to Pathways to Decarbonization: A North American Aluminum Roadmap, aluminum production emissions must decline by 24 per cent by 2030, 63 per cent by 2040 and 92 per cent by 2050 compared with 2021 levels to meet net-zero targets, highlighting the urgent need for cleaner technologies across both primary production and secondary remelting. Aspects of secondary aluminum production that use fossil fuels (natural gas et cetera), such as the remelting of scrap metal, can potentially utilize alternative energy sources such as plasma. Global aluminum demand is projected to rise nearly 40 per cent by 2030 and up to 80 per cent by 2050, driven by growth in automotive, aerospace and packaging. Plasma-based electrification offers a cleaner, scalable alternative to traditional fuel-based heating, aligning with energy transition and decarbonization mandates. PyroGenesis's development of plasma torches for use in high temperature industrial furnaces is part of the company's three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. Plasma torches for aluminum melting furnaces are part of the company's energy transition and emissions reduction tier, where fuel switching utilizing the company's electric-powered plasma torches helps heavy industry reduce greenhouse gas emissions and fossil fuel use. The other tiers are waste remediation, and commodity security and optimization. About PyroGenesis Inc. PyroGenesis, a high-tech company, is a proud 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-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. We seek Safe Harbor.