Slide 1: An Emerging Low Cost Green Solar Silicon Metal Producer
An Emerging Low Cost Green Solar Silicon Metal Producer
Slide 2: Disclaimers
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: Solar on the Verge of a Paradigm Shift
SOLAR ON THE VERGE OF A PARADIGM SHIFT! LCO benchmark value ($/MWh) 200 Natural Gas CHP 150 Wind - offshore Biomass – incineration Natural Gas CCGT Coal 100 PV - Crystalline silicon (no tracking) PV - Crystalline silicon (with tracking) Natural Gas CHP 50 Wind - onshore 2016 1H 2014 1H 2014 2H 2015
Slide 4: Demand Ready to Explode
DEMAND READY TO EXPLODE! 1835 >10% GW Installed % of electricity Generated ~2% 319.7 183.8 100.5 414.2 2.1 15.8 40.3 242.6 1.2 3.7 6.7 138.8 23.2 70.5 1.6 2.6 5.1 9.2 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2030 2007 Solar Energy will grow from ~2% of glo
Slide 5: Large US$ Market That Is Growing
LARGE US$ MARKET THAT IS GROWING! Renewable solar energies: The solar industry was 1% of By 2035 the electricity market to Solar grade si market: US$ the US $2 trillion electricity double to US $4 trillion and solar 7.1 B in 2018 – to exceed market in 2015 to 10X to US $ 400 B the US$ 11.8 B by 2028
Slide 6: 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” 6
Slide 7: 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 8: HPQ Solution
HPQ SOLUTION 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 8
Slide 9: How We Intend to Use PUREVAP-UMG Process
HOW Clean solar energy Production Low New prices applications We intend to use our PUREVAP™ - UMG process to produce solar grade silicon metal at prices that will propagate clean solar energy production and new applications, while rendering incumbent processes obsolete 9
Slide 10: 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 11: 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 12: 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 Capacity) (5N+) (Canada) Optimized Siemens Solar (6N – 7N) (China) Optimized Siemens Solar (6N – 7N) (US & Europe) Standard Siemens Solar (6N – 7N
Slide 13: 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 14: 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 15: 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 16: History of Success: Next Is Pilot Plant Gen 3
HISTORY OF SUCCESS: NEXT IS PILOT PLANT “GEN 3” IDEA TO FULL PILOT DESIGN IN 3 YEARS 2015 - 2017 - The Idea - The Proof of Concept - Gen1 Bench Testing Lab Scale Batch Process Testing Results suggests converting SiO2 Started with into 4N+ at thin layer of Pilot scale with Si and Si-C the PUREVAPTM p
Slide 17: Pilot Plant Fully Financed, Advancing to Production
PILOT PLANT FULLY FINANCED ADVANCING TO PRODUCTION PUREVAPTM QRR Project cost Since it’s August 2016 start up August 2018, HPQ secured $5.2M remains on target from the HPQ has raised and invested Financing – Quebec Government August 2016 budget of in the project $ 5,530,000 & Strategic Technical Par
Slide 18: Pilot Plant Commissioning and Commercial Production
PILOT PLANT FULLY FINANCED ADVANCING TO PRODUCTION Pilot Plant Commissioning and Commercial Production 50 Output capacity of 50 tonnes per year; Operational Mid 2019 First demonstration Solar Cell from HPQ UMG SoG Si expected end 2019 Improving Process, Scaling, Seeking Customers, Preparing For Comm
Slide 19: 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 High Silicon Anode market for Silicon Anode market for Purity Silicon Metal (3N to 4N) Lithium Ion batteries ↑ 43.6% Lithium Ion batteries to excee
Slide 20: 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 commercial production, and the battery industry 20
Slide 21: Why Invest in HPQ?
WHY INVEST IN HPQ? Successful Gen Gen 3 Pilot First 1 & 2 Bench Test Plant Testing Commercial Plant (2016-2018) Operational mid Order Validated the 2019 2020 process PUREVAPTM PROCESS VERSUS TRADITIONAL SILICON METAL PROCESS: VERSUS ACTUAL PROCESS FOR SOLAR GRADE SILICON: Low purity feedstock → High
Slide 22: Capital Summary
CAPITAL SUMMARY Share Price $0.085 Cash and equivalent in hand $503,000 (February 28, 2019) 52 Week Low $0.055 Dedicated Cash Toward Pilot Plant $2,730,000 52 Week High $0.120 TOTAL CASH POSITION $3,233,000 Shares Outstanding: 222,284,053 Breakdown of warrants Outstanding # $ IQ Convertible debentur
Slide 23: 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 24: 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 25: Appendix
APPENDIX 25
Slide 26: HPQ PUREVAP Supporting the Hypothesis
HPQ PUREVAPTM Supporting the hypothesis 1. HPQ first commercial PUREVAPTM plant capacity should be 2,5K MTY of High Purity Si and the UMG plant capacity 2K MTY of SoG Si 2. PYR Budgetary Studies reduces the CapEx per Kg of annual Capacity to US$ 6.35 per Kg when capacity of the first PUREVAPTM plant
Slide 27: HPQ Technology Solution from Quartz to High Purity Si
HPQ TECHNOLOGY SOLUTION FROM QUARTZ TO HIGH PURITY Si THE KEY FACTOR IN REDUCING SOLAR ENERGY COST PUREVAPTM Quartz Reduction Reactor “ELEGANT IN ITS SIMPLICITY” Versus actual process for solar grade silicon: + Plasma Arc Quartz reduction with carbon using plasma submerged arc Silicon refining under
Slide 28: VS - Legacy Process
VS - 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 Trichlo
Slide 29: 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 29
Slide 30: Legacy Process
LEGACY PROCESS Metallurgical Process Used By Elkem Solar and Ferroglobe Ingot Wafer Block Wafer Solidification Downstream Partner 30
Slide 31: High Purity Si (3N+) Required for Batteries
HIGH PURITY SI (3N+) 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 so
Slide 32: 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