PyroGenesis Signs $27 Million Contract for 20MW Plasma Torch, Bolstering Backlog to Record Levels
PyroGenesis Canada (TSX: PYR) has recently secured a $27 million contract from a longstanding U.S. client, pushing the company’s backlog to an all-time high. This new project features the development of an unprecedented 20-megawatt (MW) plasma torch system.
The new 20 MW plasma torch system, which the company describes as “one of the most powerful (if not the most powerful) plasma torches ever produced commercially,” is expected to be completed over a three-year timeline. The contract’s value represents a landmark deal for PyroGenesis, driving the company’s project backlog to over $55 million—a 90% increase from the previous $29.8 million backlog announced in the second quarter of 2024.
“This landmark contract for a PyroGenesis-developed 20 MW plasma torch system raises the bar globally for plasma power and demonstrates the role PyroGenesis’ technology plays for significantly more challenging high, ultra-high, and now hyper-high temperature and power needs,” said CEO Peter Pascali. “The critical nature and the advanced science involved in this client’s application underscores the regard that clients have for PyroGenesis’ scientific and engineering capabilities.”
The contract’s value—estimated at $27 million—adds to a growing portfolio of work for PyroGenesis, which has seen its backlog surge to over $55 million, a significant leap from its previous records.
The project comes just over a year after the same U.S. client—who remains anonymous for confidentiality reasons—commissioned a 4.5 MW plasma torch from PyroGenesis in August 2023.
Plasma torches, which use electrical energy to create extreme heat in a controlled environment, are seen as an essential tool in the ongoing energy transition due to their ability to reduce reliance on fossil fuels.
“Plasma torches of this power level position us well to expand our capabilities into other industries requiring appreciably higher power level technology,” Pascali stated. “This is becoming more common as global energy transition measures, and the demand for unique high-power heat applications, accelerate.”
Plasma torches operate by using an electrical arc to ionize gas, creating a plasma—a superheated, electrically conductive state of matter that can reach temperatures above 10,000°C. These devices are capable of creating extremely high temperatures without burning fossil fuels, making them a critical technology for industries looking to decarbonize.
For decades, plasma torch technology has been employed in sectors such as metals production, waste treatment, and advanced manufacturing. However, as the global demand for sustainable industrial processes increases, plasma systems are now being adapted for broader applications.
PyroGenesis last traded at $0.75 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
