PyroGenesis (TSX: PYR) has reportedly entered into a contract with one of the three largest steelmakers globally. The contract will see the company assess whether its fully electric plasma torches are able to be used in part of the clients electric arc furnace steelmaking and casting process.
The contract, which is to be fulfilled over sixty to ninety days beginning in the fourth quarter, is said to outline the steps required for analyzing plasma torches in support of the clients energy transition goals.
Specifically, the contract is to determine how plasma can be used following the electric arc furnace process. The use of electricity in electric arc furnaces is said to reduce CO2 emissions by at least 75% versus the traditional method of using coking coal for steel production, with at least 30% of global steel production now having switched to electric arc furnaces as of 2021 in an effort to reduce emissions.
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Referred to as Client C, PyroGenesis was recently awarded official supplier status by the client after having worked with them for a number of years. While the name has not be revealed publicly for competitive reasons, the client is said to be one of the largest operators in both steelmaking and iron ore pelletization. The award of official supplier status was reportedly part of the lead-up to today’s announcement.
PyroGenesis last traded at $0.64 on the TSX.
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