Pyrogenesis Inc. · TSX:PYR
Pyrogenesis — PyroGenesis Canada — Investor Presentation (November 2023)
55 slides from Pyrogenesis's investor presentation, Nov 16, 2023
Slide 1: Corporate Presentation
State-of-the-art industrial technology solving some of the world's most pressing environmental, engineering, and energy problems. Corporate Presentation November 16, 2023 TSX: PYR | FRA: 8PY
Slide 2: Important Disclosures
2 About this Presentation This presentation is dated November 16, 2023, and is strictly intended to provide general information about PyroGenesis Canada Inc. (“PyroGenesis”, the “Company”, “we” or “our”) and its business. This presentation does not constitute an offer to sell or the solicitation of
Slide 3: Company Overview
3 TSX: PYR Company Overview
Slide 4: 30 Year History
Company Overview 4 30 YEAR HISTORY For 30 years, PyroGenesis has been advancing its expertise in ultra-high temperature processes to develop a technology ecosystem of services and solutions that helps heavy industry customers meet their fuel-switching, decarbonization, greenhouse-gas reduction, and
Slide 5: By the Numbers
Company Overview 5 ULTRA-HIGH TEMPERATURE BY THE NUMBERS INDUSTRIAL PROCESSES 30+ Years 156 Patents To help solve key environmental, founded in 1991 granted or pending engineering, and energy challenges facing heavy industry. 3 Facilities 3 Major verticals 2 factories, 1 engineering HQ each with mul
Slide 6: Global Sales
Company Overview 6 GLOBAL SALES 6 CONTINENTS 20 COUNTRIES COMPANY HEADQUARTERS MANUFACTURING FACILITIES OVERALL SALES ACTIVITY
Slide 7: Global Sales by Project Type
Company Overview 7 GLOBAL SALES SALES BY PROJECT TYPE COMPANY HEADQUARTERS MANUFACTURING FACILITIES ENERGY TRANSITION & EMISSION REDUCTION SALES COMMODITY SECURITY & OPTIMIZATION SALES WASTE REMEDIATION SALES
Slide 8: Investment Thesis
Company Overview 8 INVESTMENT THESIS 1 | Serving the largest sectors of the • PyroGenesis’ all-electric plasma-based industrial furnace burners and waste destruction systems, along with biogas upgrading and desulphurization technologies, serve the rapidly global industrial decarbonization effort gro
Slide 9: Plasma: Core Innovation
Company Overview 9 PLASMA: CORE INNOVATION NATURE’S CARBON-FREE • We are experts in ultra-high temperature industrial processes • Many of our technology solutions utilize plasma ENERGY SOURCE AND • We have one of the largest teams of plasma experts in the world OUR AREA OF EXPERTISE • Our scientists
Slide 10: Core Innovation
Company Overview 10 CORE INNOVATION • Our plasma-based solutions operate at up to 10,000°F • The ultra-high heat enables the use of plasma across multiple solutions and heavy industries, including defense, aluminum, mining, steel, waste destruction, 3D printing • Plasma torches are available from 50
Slide 11: Core Innovation: How We Deploy Plasma's Capabilities
Company Overview 11 CORE INNOVATION Furnace Fuel Switching / Electrification Toxic Refrigerant Removal Recovery and Heat Valorization of Materials from Dross Purify Metal Powders for 3D Printing Return Composite Materials Back to Ship-board Waste Destruction Their Original Form HOW WE DEPLOY Alter t
Slide 12: Strategy
12 Strategy
Slide 13: Business Strategy
Strategy 13 BUSINESS STRATEGY We’ve bundled our technologies into a Solution Ecosystem solution ecosystem, under three verticals aligned to heavy industry economic drivers: Energy Transition & Emission Reduction • fuel switching, utilizing our electric-powered plasma torches and biogas upgrading tec
Slide 14: Growth Strategy
Strategy 14 GROWTH THROUGH CROSS- GROWTH STRATEGY SELL, RELATIONSHIPS, MARKET EXPANSION, AND CONTINUED Organic Growth M&A / JVs TECHNOLOGY ACCEPTANCE • Outbound Sales • Acquisition • Focused on 3-verticals: • Targeting small private firms LEVERAGING INDUSTRIAL 1. Energy Transition & Emission Reducti
Slide 15: Growth Strategy: Aluminerie Alouette Partnership
Strategy 15 GROWTH THROUGH CROSS- GROWTH STRATEGY SELL, RELATIONSHIPS, MARKET EXPANSION, AND CONTINUED Organic Growth TECHNOLOGY ACCEPTANCE ALUMINERIE Aluminerie Alouette is an aluminum producer in Quebec, home to the largest ALOUETTE primary aluminum smelter in the Americas. LEVERAGING INDUSTRIAL P
Slide 16: Solution Ecosystem
Business Strategy/Solution Ecosystem 16 Solution Ecosystem
Slide 17: Solution Eco-System
Business Strategy/Solution Ecosystem 17 SOLUTION ECO-SYSTEM Energy Transition & Commodity Security Waste Emission Reduction & Optimization Remediation • Iron ore furnace plasma burners • Aluminum dross recovery • Ship-board waste destruction • Biogas upgrading, desulphurization, • Titanium metal pow
Slide 18: Solution Eco-System by Commercialization Stage
Business Strategy/Solution Ecosystem 18 SOLUTION ECO-SYSTEM Energy Transition & Commodity Security Waste Emission Reduction & Optimization Remediation Commercialized Commercialized Commercialized Technology • Iron ore furnace plasma burners • Aluminum dross recovery • Ship-board waste destruction •
Slide 19: Energy Transition & Emission Reduction
Business Strategy/Solutions 19 Energy Transition & Emission Reduction
Slide 20: Overview: Energy Transition & Emission Reduction
Business Strategy/Solutions 20 OVERVIEW PyroGenesis offers fuel Target Sectors Commercialized Technology switching and electrification ü Iron ore furnace plasma burners solutions for companies • Iron ore ü Biogas upgrading, desulphurization, seeking energy transition or • Aluminum and pollution cont
Slide 21: Tailwinds
Business Strategy/Solutions 21 TAILWINDS REGULATORY, POLICY, Paris Accord, to limit the increase in climate temperature to below 2C, via 50% emission reduction by 2030, and net zero by 2050. GEOPOLITICAL, AND SOCIAL DRIVERS US Inflation Reduction Act, which provides significant federal funding for c
Slide 22: Plasma Burners for Iron Ore Baking
Business Strategy/Solutions 22 PLASMA BURNERS SOLUTION FOR IRON ORE BAKING • Upstream iron ore producers turn lower quality ore into marble sized pellets (pelletization) for transportation and later use in blast furnaces • Pelletization furnaces burn heavy fuels, bunker fuel, diesel, or natural gas
Slide 23: Plasma Burners for Iron Ore Baking: Status
Business Strategy/Solutions 23 PLASMA BURNERS SOLUTION FOR IRON ORE BAKING STATUS: commercialized in 2022 • Completed initial systems sales to two largest global ore firms • Torches to undergo in-furnace trials at both client factories in 2023 • Successful completion of ongoing trials may result in
Slide 24: Biogas Upgrading and Desulphurization
Business Strategy/Solutions 24 SOLUTION BIOGAS UPGRADING AND DESULPHURIZATION • US landfill off-gas is an enormous emissions problem, equivalent to 20 million cars • According to the EPA, it’s the third largest source of human-related methane emissions in the US, at ~15% Technology Solution Pyro Gre
Slide 25: Biogas Upgrading: Status
Business Strategy/Solutions 25 SOLUTION BIOGAS UPGRADING AND DESULPHURIZATION STATUS: mature and growing business • Pyro Green-Gas, a Montreal company (formerly AirScience Technologies), was acquired by PyroGenesis in August 2021 • An experienced provider of systems for RNG, pyrolysis-gas purificati
Slide 26: Aluminum Remelting Plasma Furnace
Business Strategy/Solutions 26 SOLUTION ALUMINUM REMELTING PLASMA FURNACE • Aluminum demand is surging amid rising material costs • Industry faces 77% carbon reduction target by 2050 • Holding tanks, remelting furnaces, and anode baking furnaces all burn gas Technology Solutions • Plasma-heated reme
Slide 27: Aluminum Remelting Plasma Furnace: Status
Business Strategy/Solutions 27 SOLUTION ALUMINUM REMELTING PLASMA FURNACE STATUS: commercial-ready • The development of a remelting furnace using plasma is based off our existing Drosrite metal recovery furnace design, which has been in use commercially for several years • Plasma burner replacement
Slide 28: Plasma Torch, Coke-Oven Gas Conversion for Steelmaking
Business Strategy/Solutions 28 SOLUTION PLASMA TORCH, COKE-OVEN GAS CONVERSION FOR STEELMAKING • Steelmaking relies heavily on coal, coke, and diesel • Causes 7-12% of global GHG emissions • Releases more than 3 billion metric tons of carbon dioxide each year, making steel the industrial material wi
Slide 29: Coke-Oven Gas Conversion: Status
Business Strategy/Solutions 29 SOLUTION PLASMA TORCH, COKE-OVEN GAS CONVERSION FOR STEELMAKING STATUS: commercial-ready / commercial • Plasma torches are being trialed in iron ore baking, an upstream step of the steelmaking process; outreach to steelmakers is occurring • Pyro Green-Gas has coke oven
Slide 30: Commodity Security & Optimization
Business Strategy/Solutions 30 Commodity Security & Optimization
Slide 31: Overview: Commodity Security & Optimization
Business Strategy/Solutions 31 OVERVIEW As the growing popularity of Target Sectors Commercialized Solutions vital materials collides with ü Aluminum dross recovery (Drosrite) demands for higher quality, • Aluminum ü Titanium metal powders for additive lower environmental impact, • Aerospace manufac
Slide 32: Tailwinds
Business Strategy/Solutions 32 TAILWINDS REGULATORY, POLICY, • Rising demand for key metals, such as aluminum and iron GEOPOLITICAL, AND • Demand for aluminium forecast to grow by 80% by 2050 SOCIAL DRIVERS • Critical minerals designations by many countries: • Canada - https://www.canada.ca/en/campa
Slide 33: Drosrite Aluminum Dross Processing
Business Strategy/Solutions 33 SOLUTION TM DROSRITE ALUMINUM DROSS PROCESSING • Dross is a residual byproduct of smelting; when air comes into contact with molten aluminum, the drying top layer absorbs impurities rising to the surface • The result is a mix of contaminants and metal, traditionally sk
Slide 34: Drosrite: Status
Business Strategy/Solutions 34 SOLUTION TM DROSRITE ALUMINUM DROSS PROCESSING STATUS: commercialized • Drosrite systems are processing dross at Ma’aden in Ras Al Khair Saudi Arabia, the largest greenfield aluminum smelter in the world • 14 Drosrite™ orders placed since debut in 2016 • We continue to
Slide 35: NexGen Titanium Metal Powders
Business Strategy/Solutions 35 TM SOLUTION NEXGEN TITANIUM METAL POWDERS • Titanium metal powder is in high demand by additive manufacturers due to a high strength/light weight combination, putting it on the critical mineral list of many countries • Used by aerospace, medical industries for 3D print
Slide 36: NexGen Titanium Metal Powders: Status
Business Strategy/Solutions 36 TM SOLUTION NEXGEN TITANIUM METAL POWDERS STATUS: commercialized • We have taken a series of steps – starting with a ground-up rethink and improvement of the technology for NexGen™ – to position us as an eventual leader in the high-quality powder space. OUTLOOK/POTENTI
Slide 37: Waste Remediation
Business Strategy/Solutions 37 Waste Remediation
Slide 38: Overview: Waste Remediation
Business Strategy/Solutions 38 OVERVIEW PyroGenesis technology Target Sectors Commercialized Solutions facilitates the safe ü Ship-board waste destruction destruction of hazardous • Military ü Land-based solid/hazardous waste materials, and the recovery • Aluminum • Government and valorisation of •
Slide 39: Tailwinds
Business Strategy/Solutions 39 • TAILWINDS REGULATORY, POLICY, Tightening landfill regulations GEOPOLITICAL, AND • Restrictions around: SOCIAL DRIVERS • refrigerant disposal • Incineration • medical waste disposal • Rising awareness around “forever chemicals” such as PFAS • Legal mitigation for heav
Slide 40: Ship-Board Waste Destruction (PAWDS)
Business Strategy/Solutions 40 SHIP-BOARD WASTE SOLUTION DESTRUCTION (PAWDS) • Sea-borne ships cannot dump non-biodegradable waste into the ocean • Compacted onboard trash quickly uses up storage space, forcing premature return to port Technology Solution PyroGenesis PAWDS system safely destroys pap
Slide 41: Ship-Board Waste Destruction: Status
Business Strategy/Solutions 41 SHIP-BOARD WASTE SOLUTION DESTRUCTION (PAWDS) STATUS: commercialized • US Navy purchased multiple PAWDS systems for use on the newest class of aircraft carriers • The Ford-class carriers are the world’s largest warships, and the most technologically advanced ships ever
Slide 42: Solid and Hazardous Waste Destruction
Business Strategy/Solutions 42 SOLUTION SOLID AND HAZARDOUS WASTE DESTRUCTION • Legislation is tightening restrictions on allowable landfill waste in jurisdictions worldwide • Industrial, medical, and synthetic refrigerant waste - including CFCs, HFCs, and HCFCs – are under scrutiny Technology Solut
Slide 43: Solid and Hazardous Waste Destruction: Status
Business Strategy/Solutions 43 SOLUTION SOLID AND HAZARDOUS WASTE DESTRUCTION STATUS: commercialized • New $6M SPARC sale Q1 2023 to New Zealand product stewardship organization, due to NZ government’s refrigerant destruction mandate OUTLOOK/POTENTIAL • Previously a latent division, we are seeing re
Slide 44: Aluminum Dross Residue Valorization
Business Strategy/Solutions 44 SOLUTION ALUMINUM DROSS RESIDUE VALORIZATION • While systems like our Drosrite can reclaim valuable metals from aluminum dross, a chemical residue remains • The residues are packed full of toxic chemicals and usually landfilled Technology Solution Working with a partne
Slide 45: Aluminum Dross Residue Valorization: Status
Business Strategy/Solutions 45 SOLUTION ALUMINUM DROSS RESIDUE VALORIZATION STATUS: commercial-ready • We are establishing a joint venture with an international partner • The ultimate goal is to build small factories to process the dross residue from nearby aluminum producers OUTLOOK/POTENTIAL • The
Slide 46: Aluminum Spent Pot Lining Valorisation
Business Strategy/Solutions 46 SOLUTION ALUMINUM SPENT POT LINING VALORISATION • Aluminum is produced inside a steel shell (or “pot”) lined with carbon cathode material that conducts electricity • The lining loses conductivity in 2-6 years and is replaced • Contaminated by chemicals, the toxic “spen
Slide 47: Spent Pot Lining Valorisation: Status
Business Strategy/Solutions 47 SOLUTION ALUMINUM SPENT POT LINING VALORISATION STATUS: in development • Alouette and PyroGenesis have recently expanded the partnership • Compared to chemical treatments currently used, our method is projected to generate major savings resulting from the decrease or e
Slide 48: Operational Highlights
48 Operational Highlights
Slide 49: Revenue Diversification
Operational Highlights 49 CONTRACTS FROM REVENUE MULTIPLE BUSINESS LINES DIVERSIFICATION Aluminum Waste Remediation $2.7M to recover and valorize waste residue from primary aluminum production 3D Printing / Additive Manufacturing 5 tonne order for titanium metal powder; option for 6 tonnes more Ship
Slide 50: Project Revenue Backlog
Operational Highlights 50 Project Revenue Backlog QUARTERLY BACKLOG 2017 - 2023 55,000,000 50,000,000 ALL-TIME HIGH BACKLOG $47,700,000 45,000,000 40,000,000 $34,000,000 35,000,000 30,000,000 2023 25,000,000 QUARTERS 20,000,000 15,000,000 10,000,000 5,000,000 0 $4,100,000 PERIOD LOW BACKLOG 2017 201
Slide 51: Revenue History
Operational Highlights 51 Revenue History QUARTERLY REVENUE 2015 - 2023 11,000,000 10,000,000 ALL-TIME HIGH QUARTER $9,300,000 9,000,000 8,000,000 7,000,000 6,000,000 REVENUE 5,000,000 $3,700,000 4,000,000 3,000,000 2,000,000 2023 1,000,000 $450,000 QUARTERS PERIOD LOW QUARTER 0 1 2 3 4 1 2 3 4 1 2
Slide 52: Revenue History: Yearly Revenues by Quarter
Operational Highlights 52 Revenue History YEARLY REVENUES BY QUARTER 2015 - 2023 Q1 Q2 Q3 Q4 Full Year / Year To Date $40,000,000 $31,100,000 $30,000,000 $7,200,000 $20,000,000 $19,013,502 $17,688,000 $9,300,000 $3,301,777 $6,770,000 $5,657,783 $10,000,000 $8,300,000 $9,331,101 $0 (To Q3) $6,226,000
Slide 53: Partnerships
Operational Highlights 53 PYROGENESIS DEVELOPS PARTNERSHIPS PARTNERSHIPS TO HELP DRIVE INNOVATION AND GROWTH HPQ SILICON • HPQ Silicon is an advanced materials engineering provider that offers sustainable silica (Si02) and silicon (Si) solutions. Based in Quebec, HPQ is developing a portfolio of val
Slide 54: Summary
54 SUMMARY ü Tailwinds from industrial carbon reduction trend and major policy and regulatory drivers ü 30 years developing technologies supported, vetted, and adopted by major global corporations, governments, and military ü IP strength from 150+ patents granted or pending in US, Canada, and global
Slide 55: Using Plasma-Based Solutions to Reduce the World's Carbon Footprint
Using Plasma-Based Solutions to Reduce the World’s Carbon Footprint Contact: Rodayna Kafal, Vice President www.pyrogenesis.com Investors Relations and Strategic Business Development Phone: (514) 937-0002 E-mail: ir@pyrogenesis.com
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