08:26 AM EDT, 10/21/2024 (MT Newswires) -- PyroGenesis Canada ( PYRGF ) on Monday said it agreed to a $27-million contract with a U.S company to develop and supply a 20-megawatt plasma torch to a U.S. customer.

The company said the torch would be one of the most powerful ever produced, with research and construction expected to take up to three years.

"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. This need is seen specifically within aerospace, defense, and certain heavy industries," chief executive Peter Pascali said in a release.

PyroGenesis did not identify the customer, but said it serves as a prime contractor to the U.S. government and has already ordered a 4.5-megawatt plasma torch from the company.

The company said with the order, its backlog rose to $55 million, up from $29.8 million at the end of the second quarter.

PyroGenesis shares closed down $0.01 to $0.75 Friday on the Toronto Stock Exchange.