Dear MazerRR,

Thank-you for posting here.

I think this is your first time.  Welcome.

Your questions are very good and quite detailed and I thank-you for taking the time you did to ask them.  Regretfully, and I feel bad about this, I am not able to answer them to the extent they deserve, and which I believe you expect, without an NDA in place. 

Let me see what I can do, and the balance I will try and touch upon in the next press release on the subject.

Question1:

How many clients looking into burner replacement (iron pelletization, steel, metallurgical industry, etc.) has Pyrogenesis currently signed torch modelling contracts with? In the recent news report, you had discussed receiving 'requests' for modeling; if there are any further updates you are at liberty to share that would be great.

Answer1:

We currently only have one CFD modeling project contracted fo,r and that was the subject of a recent press release. 

As mentioned in that press release, we are speaking with quite a few companies, with the same need, for similar modelling.  We would expect the signing of another modelling contract to be material and we will press release such if, and when, it occurs.

Separately, we have recently been approached by several large companies, from multiple industries, each of whom has identified additional applications where GHGs can be reduced using plasma torches.  We are presenting via webinars.

In most cases the torch we sold/demonstrated in Sweden works perfectly.  This would imply no development and as such can be delivered in 5-6 months.

Q2)

Is Pyrogenesis' plasma heated furnace design (for induration in Iron pelletization) something that can be turned into an off-the-shelf product that can be integrated into existing processes with no/minimal modifications needed, or does every project require a custom approach and torch modeling?

A2)

 No, every project will not require a custom build.  In fact, our current torch (Sweden model) is already an “off- the -shelf” offering.  What I mean by “off-the-shelf” is that the torch would largely be identical for all applications, perhaps only differing in the attachment method to the furnaces, but this is only a minor adaptation.

Prospective clients currently want to start with modeling just to ensure that the torches will not damage their furnaces (they will not).  Once we have more installations, we believe this concern will be alleviated. 

Q3)

Other than the Iron pelletization, steel and metallurgical industries, are there any other industries you are targeting for potential fossil-fuel burner replacement with torches? For example, there is potential in the cement industry (cement kilns), etc.

A3)

 You are correct, there is great potential in the cement industry, and yes, we are on top of that as well.

As you might imagine, there are quite a few industries we are targeting, but I do not want to identify specific ones just yet.  Suffice it to say that we are finding it a bit challenging to keep up with the inquires coming in the door as a result of our recent announcements/success.

Q4)

 Have you thought about participating in an industrial forum on GHG reductions, where your induration torch product and its applications & benefits can be highlighted to industrial clients, governments, and other interested parties?

A4)

We are actively participating in several GHG reduction efforts, and we expect our participation to increase over the next 4-6 months. We would very much welcome any suggestions you may have.

Q5)

This isn't a question but more of a comment/suggestion, in light of the increasing focus on GHG emission reduction worldwide, and Pyrogenesis' ability to fulfill a critical need via their induration torches (or other products). It would be interesting to have more visibility on Pyrogenesis' website (company statement or product & services pages) about your commitment to helping corporations reduce their GHG emissions and building a cleaner world.

A5)

We are working on this as we speak.

Q6)

Unrelated to previous topics, but just wondering - Has there been any further communications/developments with the Japanese corporation on the Drosrite tolling partnership (JV), further to the MOU announced in 2018? If this is something you are at liberty to discuss

A6)

Given our announcement in 2018, and that there hasn’t been any press release announcing a termination of the relationship (as that would be material), I think it would not be out of order to confirm that things are moving forward.  Our focus was, recently, on ensuring that the transaction with Drosrite International was a success.  I think it would be safe to assume that we are moving forward on projects together.

Hope that helps,

Peter