Hpq Silicon Inc · TSXV:HPQ
Hpq Silicon — HPQ Silicon Resources — Shareholder Meeting (June 2019)
34 slides from Hpq Silicon's shareholder meeting presentation, June 2019
Slide 1: The Emerging Low Cost Silicon Metal Producer
The Emerging Low Cost Silicon Metal Producer AGM JUNE 2019
Slide 2: Disclaimers: Forward-Looking Statements
DISCLAIMERS This presentation includes certain “FORWARD-LOOKING STATEMENTS” All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and objectives of the company, are forward-looking statements that involve various r
Slide 3: Silicon Metal End Markets
Silicon Metal End Markets Silicon Metal § Typical Composition: Aluminum >98.5% Si § Primary End Markets: Aluminum(40-45%), Chemical Silicones Silicones (35-40%), Solar cells (20-25%) Grade Mg Si + High Purity Si 3
Slide 4: Global Megatrends Driving Increase Silicon Metal
Global Megatrends Driving Increase Silicon Metal Megatrends Implications End Customer Product Growing middle class China and India: • Silicones: healthcare, cosmetics, packaging consumption economy Population Growth India, Brazil, and other • Silicon: aluminum for cars, housing growth emerging marke
Slide 5: Silicon Metal Needed for Electric Cars
SILICON METAL (Si) NEEDED FOR ELECTRIC CARS A HISTORY OF SUCCESSFUL RESULTS The aluminum alloy chassis of Tesla car is 10% Silicon! Aluminum silicon alloy Silicon also found in Silicon in the makes the aluminum the battery anode windshield lighter and stronger PLUG- IN EV SALES (annual) 566,000 2015
Slide 6: Mg Si Addressable Markets
HPQ) — SILICON RESOURCES RU Silicon market outlook Silicon demand continues to be driven by chemical sector Silicon consumption by intermediate end-use, ‘000 t = MCS aTCS Aluminium
Slide 7: Mg Si Addressable Markets
Mg Si Addressable Markets o Greenfield plants will provide the majority of new capacity greenfield 58% Contribution to the expected growth in annual production capacity outside China and the CIS between 2010 and 2020, % conversions 16% brownfield 20%
Slide 8: HPQ Solution to Meet Mg Si Demand
HPQ SOLUTION TO MEET Mg Si DEMAND: • New Greenfield plants needed to meet anticipated demand requires scale (> 30,000 MTY): • Capex Cost range between US$8 to US$9 per Kg of annual capacity or US$ 240M to US$ 270M investments1 • OPEX are high with little cost control options (70% of Operating Cost a
Slide 9: Mg Si Addressable Markets
Mg Si Addressable Markets feu Siicon market out Global silicon cost curve is relatively flat = Quartz m@ Reductants m Electrodes m Electricity Transport = Other Costs Operating cost in 2018, $/t 2,500 2,000 1,500 1,000 500 le) 500 1,000 1,500 2,000 2,500 Production, ‘000 t
Slide 10: HPQ Business Approach
HPQ Business Approach HPQ intend to maximize the proprietary advantages of its PUREVAPTM process with the following two prong strategy: • Near – term cash flow niche market silicon metal applications (Chemical Grade Si, batteries,…), and • High Purity silicon for advanced PV applications 10
Slide 11: Mg Si Addressable Markets
Mg Si Addressable Markets PUREVAPTM estimated operating cost to produce 2N Si (To be firm up during Gen3 Pilot Plant) 11
Slide 12: HPQ Globally Renowned Technical Partners
HPQ GLOBALLY RENOWNED TECHNICAL PARTNERS Plasma Expertise: One of the largest in the World +25 +25 years >60 Patents 40,900 ft2 The inventors of of experience & worldwide (issued Manufacturing Plasma Atomization > 70 employees or pending) facility (Gold Standard) World Leader In Technology Sold To U
Slide 13: Solar Sub-Market of Mg Si
SOLAR SUB-MARKET OF MG SI LARGE US$ MARKET THAT IS GROWING! Renewable solar energies: Solar Grade Si market: US$ 7.1 B in 2018 – to exceed – US$ 11.8 B by 2028 2028 US$11.8 Billion (Source: Deutsche Bank, Future Market Insights report titled, "Polysilicon Market: Global Industry Analysis 2013-2017 a
Slide 14: Solar on the Verge of a Paradigm Shift!
SOLAR ON THE VERGE OF A PARADIGM SHIFT! LCO benchmark value ($/MWh) SOLAR ENERGY 200 ALMOST AT GRID PARITY Natural Gas CHP 150 Wind - offshore Biomass – incineration Natural Gas CCGT Coal 100 PV - Crystalline silicon (no tracking) PV - Crystalline silicon (with tracking) Natural Gas CHP 50 Wind - on
Slide 15: Demand Ready to Explode!
DEMAND READY TO EXPLODE! 1835 >10% GW Installed % of electricity Generated ~2% 319.7 183.8 100.5 414.2 2.1 15.8 40.3 242.6 1.2 3.7 6.7 138.8 23.2 70.5 1.6 2.6 5.1 9.2 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2030 2007 Solar Energy will grow from ~2% of glo
Slide 16: At the Cusp… But…
AT THE CUSP… BUT… Solar power is at the cusp of fulfilling its renewable energy potential But process improvements to produce Solar Grade Silicon Metal (SoG Si) have plateaued, creating a “Catch 22” 16
Slide 17: HPQ PUREVAP: The Solution to the Solar Industry's Catch 22
HPQ PUREVAPTM THE SOLUTION TO THE SOLAR INDUSTRY’S “CATCH 22’’ Technological innovation is needed to lower per unit costs, but the High Capex & Low Margins increase the degree of difficulty of executing an innovation-oriented business plan Source: The capital intensity of photovoltaics manufacturing
Slide 18: HPQ Solar Solution Starts With PUREVAP QRR
HPQ SOLAR SOLUTION START WITH The PUREVAP™ QRR, a new proprietary (patent pending) carbothermic process: That will bring about ↓ SoG Si Capex 60% - 86% ↓ SoG SI Cash Cost 30% - 60% ↓ CO2 Release by Up to 96% SiO2 98.5+% Carbon 4N + Si with low boron <1 ppm A ONE STEP PROCESS 18
Slide 19: HPQ Globally Renowned Technical Partners
HPQ GLOBALLY RENOWNED TECHNICAL PARTNERS A French Company fully dedicated to the field of energy transition Created in 2001 by a team of engineers and scientists with longstanding expertise in Silicon Purification and Crystallisation - Solar Silicon - Photovoltaic Cells - Photovoltaic Modules Now Pa
Slide 20: HPQ Technological Solution from Quartz to Solar Wafers
HPQ TECHNOLOGICAL SOLUTION FROM QUARTZ TO SOLAR WAFERS How HPQ will implement its technological solution HPQ PYROGENESIS’ By Combined Expertise In Three Critical Steps: QUARTZ PUREVAP™ PROCESS The PUREVAP™ technology of PyroGenesis transforms Quartz (SiO2) to High Purity Silicon Metal (4N+ Si < 1 pp
Slide 21: PUREVAP UMG Capex Disruptive Potential
PUREVAP™ UMG CAPEX DISRUPTIVE POTENTIAL 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Not Optimized Purevap UMG Capex (US$ Cost per Kg of Annual Capacity) (5N+) (Canada) Optimized Siemens Solar (6N – 7N) (China) Optimized Siemens Solar (6N – 7N) (US & Europe) Standard Siemens Solar (
Slide 22: PUREVAP UMG Opex Disruptive Potential
PUREVAP™ UMG OPEX DISRUPTIVE POTENTIAL Global Solar Installation Demand Forecast (GW): (Average of GTW-Bloomberg-HIS projections) Cash Cost (USD$) o 2018 ~ 97 GW ≈ 388,000 MT demand for Polysilicon (SoG Si) o 2019 ~ 113 GW ≈ 418,000 MT demand for Polysilicon (SoG Si) o 2020 ~ 129 GW ≈ 451,000 MT dem
Slide 23: HPQ PUREVAP GHG Disruptive Potential
HPQ PUREVAP™ GHG DISRUPTIVE POTENTIAL 70% of the GHG generated by any solar project comes from the production of SoG Si (source: Energy Policy, February 2014, Pages 229-244) HPQ’s SoG Si is poised to produce the lowest carbon footprint GERMANY QUEBEC CHINA 87 Kg of 5.4 Kg of CO2 CO2 141 Kg of CO2 CO
Slide 24: Silicon Metal Required for Batteries
SILICON METAL REQUIRED FOR BATTERIES Silicon anode lithium-ion batteries Greater energy storage Anode Chemistry Option capabilities 4500 Silicon 4000 Allows for smaller sizes 3500 batteries for electronic 10x devises and electric cars 3000 2500 2000 Energy storage for 1500 renewable energy sources 1
Slide 25: HPQ Si for Batteries: An Unexpected Positive
HPQ Si FOR BATTERIES: AN UNEXPECTED POSITIVE A By-Product of PUREVAP™ is production of Si with application in the battery market Replacing graphite with Silicon Anode market for Silicon Anode market for Silicon Metal (2N+) Lithium Ion batteries ↑ 43.6% Lithium Ion batteries to exceed ↑ Anode battery
Slide 26: HPQ Si Powders
HPQ Si Powders NANOSIZE HIGH PURITY Si POWDERS FOR LI-ION BATTERIES Ø R&D being done to develop to produce porous nanoparticles of Si Ø Combining HPQ Purevap 2N+ Si and PyroGenesis Powders expertise to produce amorphous nanoparticles of Si INDICATION OF POTENTIAL VALUE OF HPQ SI-P NANOSIZE SI POWDER
Slide 27: Pilot Plant Fully Financed, Advancing to Production
PILOT PLANT FULLY FINANCED ADVANCING TO PRODUCTION Pilot Plant Commissioning and Commercial Production 50 Output capacity of 50 tonnes per year; Operational Q4 2019 First demonstration Solar Cell from HPQ UMG SoG Si expected mid 2020 Improving Process, Scaling, Seeking Mg Si Customers Using Gen2, Pr
Slide 28: Why Invest in HPQ?
WHY INVEST IN HPQ? HPQ PUREVAPTM The successful innovation that will reduce the cost barriers to renewable energy Advances from bench testing confirms cost savings potential and set the stage for Pilot Plant testing, with a new focus on Mg Si, SoG Si at commercial production, and the battery industr
Slide 29: Why Invest in HPQ?
WHY INVEST IN HPQ? Successful Gen Gen 3 Pilot Sales of Gen3 Si 1 & 2 Bench Test Plant Testing Expected 2020 (2016-2019) Operational Commercial Plant Validated the Q4 2019 Order - 2021 process PUREVAPTM PROCESS VERSUS TRADITIONAL SILICON METAL PROCESS: VERSUS ACTUAL PROCESS FOR SOLAR GRADE SILICON: D
Slide 30: Management and Board Summary
MANAGEMENT AND BOARD SUMMARY Management Independent Director (*) Bernard J Tourillon, BAA, MBA Richard Mimeau, B.Sc. Chairman, President, CEO and Director Director Patrick Levasseur Peter Smith, PhD, P. Eng. Vice-President, COO and Director Director Noelle Drapeau, LLL, MBA, PMP Robert Robitaille, B
Slide 31: Contact
CONTACT Bernard J. Tourillon, B.A.A, MBA Patrick Levasseur Chairman, President and CEO Vice-President, COO and Director bernard.tourillon@hpqsilicon.com patrick.levasseur@hpqsilicon.com +1 514 907-1011 +1 514 262-9289 3000 Omer-Lavallée St, Suite 306 +1 514 846 3271 Montreal, Quebec, CANADA, H1Y 3R8
Slide 32: Appendix
APPENDIX 32
Slide 33: Legacy Process
LEGACY PROCESS Present Carbothermic process Quartz to silicon metal (Si) MG Silicon Metal 98.0% to 99.5% Si SiO2 99.5% + Low Ash Electric Arc Energy Consumption: Coal + Wood Chips Furnace 12,000 kWh/t Present Chemical process MG-Si to SoG-Si MG Silicon Metal Is Dissolved In Hydrochloric Trichlorosil
Slide 34: Legacy Process
LEGACY PROCESS Present Metallurgical Process Used By Elkem Solar and Ferroglobe Slag Post Mg Si Leaching Solidification Treatment Treatment 98,5% to 99.0% Si TO 5N+ SoG Si 34
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