08:14 AM EDT, 04/17/2024 (MT Newswires) -- PyroGenesis Canada ( PYRGF ) , which saw its shares drop 12% yesterday, on Wednesday said it agreed with a billion-dollar mining parts manufacturer to assess the applicability of electric plasma torches in the client's metal cast houses.

The client, described as a significant CO2 emitter with international operations, wants to use the plasma torches to help reach its energy-transition/decarbonization goals.

The initial testing should be completed within the next 10 weeks. If successful, the client will move to step 2, which involves producing a complete plasma torch-based system on-site to replace a fossil fuel burner. Step 2 would take 6 months and generate US$500,000-$1 million in revenue to PyroGenesis. It is estimated that the industry has thousands of such burners in operation world-wide.

"This agreement, in addition to being yet another example of the fast-growing shift taking place across heavy industries who are all being challenged to decarbonize, has a unique use aspect," said P. Peter Pascali, President and CEO of PyroGenesis. "Although initially small in value, this contract has the potential to have our plasma torch offering being considered as a solution to a particular carbon emitting process that seems to be plaguing the industry as a whole."

Separately, Pyrogenesis said the TSX approved a block sale of 3.8 million shares in HPQ Silicon Inc. ( HPQFF ) to Pascali. The transaction was conducted as of April 10, for a total price of more than $661,000. Pyrogenesis CFO Andre Mainella said the sale will bring PyroGenesis an "influx of cash on favorable terms."

The company and HPQ continue to be engaged in several long-term projects together, notably the Fumed Silica Reactor and the PUREVAP Quartz Reduction Reactor projects.