PyroGenesis Canada Inc. announced the signing by HPQ Silica Polvere Inc. of a letter of intent (LOI) with Evonik Corporation. The LOI was announced earlier on July 9, 2024 by HPQ Silicon Inc. ("HPQ"), the parent company of HPQ Polvere. HPQ Polvere's primary initiative is the Fumed Silica Reactor (FSR) project.

PyroGenesis has been designing, engineering, and constructing this proprietary technology to convert quartz (SiO2) into fumed silica (also known as pyrogenic silica) in a single and eco-friendly step while eliminating the use of harmful chemicals generated by conventional methods. The FSR, if successful, could provide a groundbreaking contribution to the repatriation of silica production to North America. PyroGenesis previously announced its intent to exercise its right to convert its annual royalty rights into a 50% ownership stake of HPQ Polvere pursuant to a Design and Development Agreement.

PyroGenesis has yet to provide HPQ with a notice of the execution of the conversion as the companies finalize key documentation outlining the legal parameters which would govern the relationship, including a shareholder's agreement. As stated in HPQ's news release of earlier today, the objective of the LOI is to outline the basis of a collaboration with Evonik during the FSR pilot scale phase with the goal to validate the ability of the FSR to produce low-cost, low carbon material acceptable to Evonik's specifications. Evonik has already confirmed that HPQ Polvere's first-generation samples are acceptable to Evonik.

The intent is to scale up the current process and confirm that the material produced continues to meet Evonik's criteria. Fumed silica is a moisture-absorbing white microstructure powder with high surface area and low bulk density. Used most often as a thickening agent, anti-caking agent, and stabilizer to improve the texture and consistency of products, the commercial applications of fumed silica can be found in many industries across thousands of product lines, including - but not limited to - personal care, powdered food, pharmaceuticals, agriculture (food & feed), adhesives, paints, sealants, construction, batteries and automotive.

The fumed silica market, valued at USD 1.3 billion in 2022, is expected to grow at a CAGR of 5% to reach USD 2.1 billion by 2032. Fumed silica sales accounted for almost 23% of the global specialty silica market at the end of 2021.1 PyroGenesis' involvement in developing fumed silica from quartz is part of PyroGenesis' three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. High-purity silicon is part of PyroGenesis's Commodity Security & Optimization tier, where the recovery of viable metals and the optimization of production to increase output helps to maximize raw materials and improve the availability of critical minerals.

Silicon has been identified as a critical mineral by many governments worldwide.