Hpq Silicon Inc · TSXV:HPQ
Hpq Silicon — Investor Presentation (December 2019)
26 slides from Hpq Silicon's investor presentation, December 2019
Slide 1: Innovation in Silicon Materials Starts With Our PUREVAP Technology
Innovation In Silicon Materials Starts With Our PUREVAPTM TECHNOLOGY Si
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: HPQ is developing the innovative PUREVAP Quartz Reduction Reactors
ü HPQ is developing the innovative PUREVAPTM Quartz Reduction Reactors ü A unique carbothermic process that will allow HPQ to have a significant impact, short and long term, on the following Silicon (Si) markets: Ø Nanoscale Structure Silicon (Si) for next Gen Li-ion Batteries; Ø Porous Silicon (Si)
Slide 4: Corporate Overview (December 2019)
CORPORATE OVERVIEW (December 2019) • HPQ-Silicon, working with PyroGenesis Canada Inc (TSX-V: PYR), is developing the Project PUREVAPTM “Quartz Reduction Reactors” (QRR), a new innovative Carbothermic process (patent pending), which will permit the low cost manufacturing of High Purity Silicon (Si)
Slide 5: Pilot Plant Fully Financed, Advancing to Production
PILOT PLANT FULLY FINANCED ADVANCING TO PRODUCTION Pilot Plant Commissioning and Commercial Production Anode Chemistry Option 50 Output capacity of 50 tonnes per year; Operational Q1 2020 Improving Process, Scaling, Preparing For Commercialization Seeking Silicon (SI) Customers Using Gen2 to Produce
Slide 6: PUREVAP Potential and Milestones Attracted Interest from Key Investors
PUREVAPTM POTENTIAL AND MILESTONES Successful Gen Gen 3 Pilot Gen3 Si sales 1 & 2 Bench Test Plant Testing Expected End 2020 (2016-2019) Operational Commercial Plant Validated the Q1 2020 Order - 2021 process ATTRACTED INTEREST FROM KEY INVESTORS August 2018 $5,250,000 Financing • The Quebec governm
Slide 7: Silicon (Si)
SILICON (Si) • One of today’s key strategic minerals (EU Commission - US DOJ) • Needed for Renewable Energy Transition with applications in: Metallurgical Grade Si (98.0% - 98.9% Si) SILICON (Si) Aluminum Primary End Markets Silicones • Aluminum (40-45%) ic lta vo Chemical to o • Silicones (35-40%)
Slide 8: Global Megatrends Driving Silicon Demand
GLOBAL MEGATRENDS DRIVING SILICON DEMAND Megatrends Implications End Customer Product Growing middle Population class China and • Silicones: healthcare, cosmetics, India: consumption packaging Growth economy India, Brazil and other emerging • Silicon: aluminum for cars, housing growth Urbanization m
Slide 9: Silicon Part of EV Transition Already Being Deployed
SILICON (Si) PART OF EV TRANSITION ALREADY BEING DEPLOYED The aluminum alloy chassis of Tesla car is 10% Silicon! Aluminum silicon alloy Silicon used in Silicon in the makes the aluminum Tesla batteries to windshield lighter and stronger replace Cobalt PLUG- IN EV SALES (annual) 566,000 2015 20,000,
Slide 10: Standard Silicon Demand Outlook
STANDARD SILICON (Si) DEMAND OUTLOOK Standard Silicon (98.5 to 99.5% Si) (Source CRU – Silicon Market Outlook – November 14 2018) ü Driven by Chemical Sector (2N+ Si), Demand Projected to Increase by 1 Million MT by 2023 Ø Going from ~ 2.8 Million MT Demand of Si worth US$ 7.5 Billion in 2018 Ø To ~
Slide 11: Challenges to Meet Anticipated Demand
CHALLENGES TO MEET ANTICIPATED DEMAND ü New plants will be needed (Source CRU – Silicon Market Outlook – November 14 2018) Greenfield plants will provide the majority of new capacity NEW CONVENTIONAL PLANTS HAVE: Contribution to the expected growth in annual production capacity outside China and the
Slide 12: HPQ PUREVAP: The Solution to the Silicon Industry's Catch 22
HPQ PUREVAPTM THE SOLUTION TO THE SILICON 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 manufacturi
Slide 13: HPQ Proprietary Solution: PUREVAP
HPQ PROPRIETARY SOLUTION! PUREVAPTM A SCALABLE – VERSATILE – ADAPTABLE PROCESS TO MEET NEW SILICON DEMAND • Scalable by increments of 2,500 MTY – The maximum size of one PUREVAPTM Reactor Quartz SiO2 to MG Si (2N+) The PUREVAP™ QRR, a proprietary (patent pending) 2.0 carbothermic process: SiO2 98.8%
Slide 14: HPQ Advantage Versus Conventional Producers
HPQ ADVANTAGE VERSUS CONVENTIONAL PRODUCERS Silicon Market Outlook (Source CRU – Silicon Market Outlook – November 14 2018) Silicon prices support new investment after 2019 US spot price 5.5.3 grade (Metallurgical) silicon vs avg. operating cost at plants outside China and CIS, $/t 4000 US Spot Pric
Slide 15: HPQ Globally Renowned Technical Partners
HPQ GLOBALLY RENOWNED TECHNICAL PARTNERS Plasma Expertise: One of the largest in the World +25 +25 years >60 Patents 40,900 ft2 The inventors of of experience & worldwide (issued Manufacturing Plasma Atomization > 70 employees or pending) facility (Gold Standard) World Leader In Technology Sold To U
Slide 16: Silicon: The Key to Better Batteries
SILICON: THE KEY TO BETTER BATTERIES Replacing Graphite with Silicon as anode in lithium-ion batteries Anode Chemistry Option Allows greater energy Theoretical Capacity storage capabilities 4500 Silicon Allows for smaller size 4000 batteries for electronic 3500 devises and electric cars 3000 10x 250
Slide 17: The Race Is On to Build Better Batteries
THE RACE IS ON TO BUILD BETTER BATTERIES ü Energy Storage: viewed as an existential threat for traditional energy players Ø Dominance of energy storage in the 21st century is akin to control of coal in the 19th century and oil in the 20th ü Presently Li-ion anodes are made using low cost graphite (U
Slide 18: Silicon Innovation: High Value Market - Batteries
SILICON INNOVATION: HIGH VALUE MARKET - BATTERIES An unexpected positive for HPQ PUREVAP™ : Si application in the Battery Space ü The Key to the next generation of Li-ion Batteries Replacing graphite with Silicon Anode market for Silicon Anode market for Silicon Metal (2N+) Lithium ion batteries ↑ 4
Slide 19: HPQ Globally Renowned Technical Partners
HPQ GLOBALLY RENOWNED TECHNICAL PARTNERS A French Company fully dedicated to the field of energy transition Created in 2001 by a team of engineers and scientists with longstanding expertise in Silicon Purification and Crystallization - Solar Silicon - Photovoltaic Cells - Photovoltaic Modules Part o
Slide 20: Silicon Innovation: High Value Market - Solar
SILICON INNOVATION: HIGH VALUE MARKET - SOLAR Solar Grade Silicon, A Large and Growing Market Renewable Solar Energies: Solar Grade Si market: US$ 7.1 B in 2018 2028 DEMAND READY TO EXPLODE! US$11.8 Billion (Source: Deutsche Bank, Future Market Insights report titled, "Polysilicon Market: Global Ind
Slide 21: HPQ Technological Solution from Quartz to Solar Wafers
HPQ TECHNOLOGICAL SOLUTION FROM QUARTZ TO SOLAR WAFERS HPQ PYROGENESIS’ How HPQ will implement its technological solution QUARTZ PUREVAP™ PROCESS By Combined Expertise In Three Critical Steps: The PUREVAP™ technology of PyroGenesis transforms Quartz (SiO2) to High Purity Silicon (4N+ Si < 1 ppm B) i
Slide 22: Legacy Process
LEGACY PROCESS Present Carbothermic process Quartz to silicon metal (Si) MG Silicon Metal 98.0% to 99.5% Si SiO2 99.5% + Low Ash Electric Arc Energy Consumption: Coal + Wood Chips Furnace 12,000 kWh/t Present Chemical process MG-Si to SoG-Si MG Silicon Metal Is Dissolved In Hydrochloric Trichlorosil
Slide 23: PUREVAP UMG Green Disruptive Potential
PUREVAP™ UMG GREEN DISRUPTIVE POTENTIAL 70% of the GHG generated by any solar project comes from the production of SoG Si (source: Energy Policy, February 2014, Pages 229-244) HPQ’s SoG Si is poised to produce the lowest carbon footprint GERMANY QUEBEC CHINA 87 Kg of 5.4 Kg of CO2 CO2 141 Kg of CO2
Slide 24: Why Invest in HPQ?
WHY INVEST IN HPQ? ü DEVELOPING THE INNOVATIVE PUREVAPTM QUARTZ REDUCTION REACTORS ü PILOT PLANT ABOUT TO GO ONLINE ü READY TO REVOLUTIONIZE THE ECONOMICS OF THE US$ 15B SILICON INDUSTRY AND THE ENERGY STORAGE MARKET WITH ITS PLANNED US$ 71 BILLION IN INVESTMENTS OVER THE NEXT FEW YEARS ü READY TO S
Slide 25: Management, Board and Capital Summary
MANAGEMENT, BOARD AND CAPITAL 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 Robitail
Slide 26: 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