Posted by Brittany McNabb
at 12:14 AM on Thursday, December 21st, 2023
HPQ Silicon Anode Battery Tech Wins 3rd Party Validation With €90,000 Grant By French Bank of Public Investments. Plans To Seek Additional Grant Up to €2M
In the realm of electric vehicle (EV) batteries, the anode serves as a critical component, acting as a storage vessel for lithium ions. Graphite anodes, the current market dominators, have reached their peak energy density. This limitation prompts a shift toward Silicon-based anodes, offering up to 10 times the energy density.
Major players like Porsche, Mercedes, and GM are embracing this technology, recognizing its potential to revolutionize EV performance.
However, Silicon anodes face challenges in degradation during charging cycles.
ENTER HPQ SILICON INC. (TSX-V: HPQ) (OTCQB: HPQFF)
HPQ Silicon is a technology company specializing in green engineering for silicon manufacturing. Positioned strategically to become a key supplier for Silicon materials in battery anodes, HPQ Silicon’s efforts align with the US and Canadian governments’ initiatives to establish domestic battery manufacturing ecosystems.
Novacium, HPQ’s France-based affiliate, has acquired patents enhancing anode material performance, particularly in silicon-based Li-ion batteries. With the pressing demand for domestic battery material suppliers, HPQ Silicon’s advancements in engineered SiOx materials position it as a crucial player in meeting the evolving needs of the electric vehicle industry while addressing supply chain vulnerabilities.
GRANT PROVIDES MORE THAN FUNDING – IT PROVIDES 3RD PARTY VALIDATION
In a groundbreaking leap toward transforming the landscape of battery technologies, HPQ Silicon Inc.’s affiliate, Novacium SAS, has been awarded a prestigious €90,000 French Tech Emergence Grant. This grant, administered by the French Bank of Public Investments, reflects not only Novacium’s prowess in “deep tech” projects but also its dedication to advancing the realm of highly engineered SiOx-based anode materials for batteries.
BERNARD TOURILLON CEO OF HPQ SILICON
“Today’s news, which can be considered a big milestone, validates our strategic partnership with Novacium and strengthens our collective position in the global market for reliable, sustainable and innovatively engineered SiOx battery materials.”
SIOX-BASED ANODE MATERIALS FOR BATTERIES
Novacium’s innovative project focuses on revolutionizing the entire value chain of SiOx-based anode materials for batteries, addressing critical challenges in the lithium battery industry. The ongoing SiOx battery tests, anticipated to yield promising results, position Novacium to seek additional deep-tech financing, potentially up to €2 million, propelling their project to a pre-commercial stage.
RIGOROUS SELECTION PROCESS PASSED BEFORE GRANT BY FRENCH BANK OF PUBLIC INVESTMENTS
The grant approval follows a rigorous selection process by the French Bank of Public Investments, validating Novacium’s deep-tech characteristics and its project’s innovativeness and industrial impact in both France, as well as, on a global scale.
Mr. Jed Kraiem, COO of Novacium, notes that the recent recognition from the French government underscores the significant industrial impact of their work, reinforcing the value proposition of their groundbreaking project.
MARKET SIZE FOR ENGINEERED SIOX ANODE MATERIALS IS EXPANDING
As the market for engineered SiOx anode materials expands, Novacium emerges as a key player, with projections indicating a potential demand of 300,000 tons by 2030, valued at an estimated US$15 billion.
A PIVOTAL MOMENT IN THE TRAJECTORY OF SIOX BASED BATTERY MATERIAL
Novacium’s recent achievement and the substantial grant from BPI underscore a pivotal moment in the trajectory of SiOx-based battery materials. With ongoing tests poised to reveal transformative results, Novacium’s commitment to shaping the future of battery technologies is undeniable.
Sit back, relax and watch this powerful interview with Bernard Tourillon, President and CEO of HPQ Silicon Inc. and NOVACIUM SAS.
Posted by AGORACOM-JC
at 9:00 AM on Wednesday, March 27th, 2019
SPONSOR: HPQ-Silicon Resources Inc. (HPQ:TSX-V) A leader in High Purity Quartz Exploration in Quebec and vertically integrated producer of Silicon Metal, Solar Grade Silicon Metal and polysilicon. Learn More.
HPQ: TSX-V
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New Wind and Solar Power Is Cheaper Than Existing Coal in Much of the U.S., Analysis Finds
Coal-fired power plants in the Southeast and Ohio Valley
stand out. In all, 74% of coal plants cost more to run than building new
wind or solar, analysts found.
Not a single coal-fired power plant along the Ohio River will be able to compete on price with new wind and solar power by 2025, according to a new report by energy analysts.
The same is true for every coal plant in a swath of the South that includes the Carolinas, Georgia, Alabama and Mississippi
Nearly three-fourths of the country’s coal-fired power plants already cost more to operate than if wind and solar capacity were built in the same areas to replace them, a new analysis says. Credit: Robert Nickelsberg/Getty Images
Not a single coal-fired power plant along the Ohio River will be able
to compete on price with new wind and solar power by 2025, according to
a new report by energy analysts.
The same is true for every coal plant in a swath of the South that
includes the Carolinas, Georgia, Alabama and Mississippi. They’re part
of the 86 percent of coal plants nationwide that are projected to be on
the losing end of this cost comparison, the analysis found.
The findings are part of a report
issued Monday by Energy Innovation and Vibrant Clean Energy that shows
where the shifting economics of electricity generation may force
utilities and regulators to ask difficult questions about what to do
with assets that are losing their value.
The report takes a point that has been well-established by other
studies—that coal power, in addition to contributing to air pollution
and climate change,
is often a money-loser—and shows how it applies at the state level and
plant level when compared with local wind and solar power capacity.
“My big takeaway is the breadth and universality of this trend across
the continental U.S. and the speed with which things are changing,”
said Mike O’Boyle, a co-author of the report and director of energy
policy for Energy Innovation, a research firm focused on clean energy.
The report is not saying that all of those coal plants could or
should be immediately replaced by renewable sources. That kind of
transition requires careful planning to make sure that the electricity
system has the resources it needs. It also doesn’t consider the role of
competition from natural gas.
The key point is a simpler one: Building new wind and solar power
capacity locally, defined as within 35 miles for the report, is often
less expensive than people in those markets realize, and this is
indicative of a price trend that is making coal less competitive.
This shift shows how market forces are helping the country move away
from fossil fuels. At the same time, coal interests have been trying to
obscure or cast doubt on this trend, while seeking more government
subsidies to slow their industry’s decline.
Coal Concerns in the Solar-Rich Southeast
Nearly three-fourths of the country’s coal-fired power plants already
cost more to operate than if wind and solar power were built in the
same areas to replace them, the report says.
By 2025, with the costs of building wind and solar power expected to
continue to decline, the analysts project that 86 percent of coal-fired
power plants will be more expensive than local renewable energy.
Notably, the 2025 wind and solar estimates assume that expiring federal
tax credits will not be extended, so any price advantage is without
federal credits.
In parts of the country where power plants compete on open markets,
such as most of Texas, companies may be more quick to shut down
money-losing plants because plant owners are the ones bearing the
losses.
It’s different in places where plants are fully regulated, as plant owners can pass extra costs on to consumers.
The Southeast, which is almost entirely regulated markets, has some
of the costliest coal plants and is rich with solar resources.
“Consumer advocates and regulators there should be asking harder
questions about integrating renewables,” said Eric Gimon, an energy
analyst and co-author of the report.
In North Carolina, for example, a state second only to Indiana in
total coal plant capacity, every one of those coal-fired power plants is
“substantially at risk,” meaning the existing plants have operational
costs that are at least 25 percent more than what it would cost to build
wind or solar capacity, the report says.
The state’s largest utility, Duke Energy, has invested in solar. The
report shows that there is room for more of this development, and that
the state remains heavily dependent on coal power that is not
cost-competitive.
Political Opposition in the Ohio Valley
In the Ohio Valley, some of the sunniest parts of Ohio
are near the river in the southern and southwest parts of the state,
areas that now have almost no solar power development. American Electric
Power, a Columbus-based utility, has proposed solar arrays
there, but the plans are running into fierce opposition before state
regulators and it is far from clear that the projects will get approved.
The Ohio Valley is a hub for coal-fired power, with plants that were
built because of proximity to coal mines and the ability to deliver coal
on river barges. And yet, the report shows that most of those plants
cost more to operate than building new wind and solar capacity.
One of the exceptions is the Gavin Power Plant, the largest in Ohio
and one of the largest in the country at 2,600 megawatts, which is
operating at a large enough scale to remain competitive. But by 2025,
even Gavin won’t be able to keep up with the declining costs of wind and
solar, according to the report. This doesn’t mean the plant will be
unprofitable, but it signals a shift in the market that will put
increasing pressure on the plant.
Some Utilities Are Factoring in Climate Impact
Colorado and the St. Louis metro area are two of the few places were
coal plants would retain a cost advantage over new renewable energy in
2025, according to the analysis. The authors say that is because of a
lack of available land to build cost-effective wind or solar within 35
miles and because the plants are close to coal mines, which reduces fuel
costs.
But a purely cost-based analysis leaves out other reasons to shut
down coal plants and build wind and solar, as shown by the largest
utility in Colorado, Xcel Energy, which is doing just that.
The company’s executives said they were responding to reports about
the acceleration of climate change. They have found that they can build
new wind and solar capacity for little or no extra cost, which is a less
precise comparison than in the new report.
And, they are preparing for the possibility that Colorado will pass a
law requiring utilities to shift to 100 percent renewable energy, which
is a priority of new Democratic Gov. Jared Polis.
Distance can also make a difference in cost calculations. If new
resources are built far from the ones they are replacing, grid operators
and utilities need to make sure they have enough power line capacity to
transport the electricity. Also, there are local economic
considerations. Utilities sometimes put new projects in the same metro
areas as ones that are closing to help the local community. This has
been part of Excel’s planning process in Pueblo, Colorado, where it is
closing a coal plant and developing new solar.
Natural Gas Competition Also Plays a Role
The report’s findings about the declining viability of coal plants
are in line with previous studies, including one from March 2018 from
BloombergNEF with the headline “Half of U.S. Coal Fleet on Shaky
Economic Footing.”
But there is a key difference. The BloombergNEF report looked at the
finances of coal plants in the context of competition from all fuels,
including natural gas.
William Nelson, a co-author of the BloombergNEF report, says he is
leery of comparing the costs of building new wind and solar to the costs
of operating existing coal plants because a coal plant is capable of
running around the clock, which makes it a different type of resource
than wind and solar unless there is large-scale battery storage.
And, he thinks that natural gas prices are an essential part of the
conversation in places such as the Ohio Valley, where gas is plentiful
and inexpensive.
Gimon of Energy Innovation says he agrees that the role of natural
gas in the market is an important element, but he says the report
intentionally narrowed the focus to look at the deteriorating finances
of coal and the improving competitiveness of wind and solar, rather than
at the electricity market as a whole.
Daniel Cohan, a Rice University engineering professor who is not
involved in the new report, says “gas is more of a gamble” for power
plant owners than wind or solar because of uncertainty about future gas
prices.
He thinks there is more certainty that wind and solar will continue
to get less expensive and that their prices can serve as a useful
comparison for coal.
The decreasing costs of wind and solar will lead to a growing gap
compared to the costs of operating coal plants, one that coal plant
owners and regulators would be wise to prepare for, Gimon said.
“You really can’t hang tight,” he said. “It’s just going to get worse.”
Tags: Hpq, Solar Posted in HPQ-Silicon Resources Inc. | Comments Off on $HPQ.ca Silicon Resources Inc. – New Wind and Solar Power Is Cheaper Than Existing Coal in Much of the U.S., Analysis Finds
Posted by AGORACOM-JC
at 11:15 AM on Tuesday, March 5th, 2019
Announced the receipt of a progress report from PyroGenesis Canada Inc (TSX Venture: PYR) describing continuous development testing of the pilot plant design and reactor related subsystems of the Silicon Melt Drainage (Tapping) part of the process. Â
Work of the Gen2 PUREVAP™ Commercial Scalability Proof of Concept platform is undertaken in order to minimize the risk of design failure during the pilot plant trials schedule to start mid-2019.
MONTREAL, March 05, 2019 – HPQ Silicon Resources Inc. (HPQ) (TSX VENTURE:HPQ) (FRANKFURT:UGE) (OTC PINK:URAGF) is pleased to announce the receipt of a progress report from PyroGenesis Canada Inc (“PyroGenesisâ€) (TSX Venture: PYR) describing continuous development testing of the pilot plant design and reactor related subsystems of the Silicon Melt Drainage (Tapping) part of the process.  This work of the Gen2 PUREVAP™ Commercial Scalability Proof of Concept platform is undertaken in order to minimize the risk of design failure during the pilot plant trials schedule to start mid-2019.
DRAINAGE OF LIQUID SILICON MELT AT THE BOTTOM OF REACTOR (TAPPING) CRITICAL TO PROCESS
Drainage of silicon (tapping) is one of the most important aspects of
the process. Efforts have been made by PyroGenesis to optimize the
design of the melt drainage subsystems of the pilot plant. In order to
test design efficiency and to generate computational studies to predict
the tapping behaviour of liquid silicon in the Gen3 pilot plant, a few
silicon melting and tapping tests using GEN2 reactor have been conducted
to date.
SIMULATED TAPPING DONE USING GEN2
To simulate the tapping process of the pilot plant unit, the Gen2
reactor was ramped up to operating parameters with a standard mixture of
quartz and carbon introduced at the beginning. Once the reactor
reached operating temperature as-received Si is introduced in the
reactor for effective melting. Once the whole Si mass melted, the tap
hole was opened to drain the liquid metal and the data from the test was
then used to generate computational studies.
Mr. Bernard Tourillon, President and CEO of HPQ Silicon Resources Inc stated: “We are very happy to show our first ever public picture of the Gen2 in action. What these tests demonstrate is the incredible versatility of our Gen2 PUREVAPTM QRR platform, highlighting the advancement being made on the project and toward de-risking the mid-2019, Gen3 commercial scalability testing phaseâ€.
Pierre Carabin, Eng., M. Eng., Chief Technology Officer and Chief
Strategist of PyroGenesis has reviewed and approved the technical
content of this press release.
This News Release is available on the company’s CEO Verified Discussion Forum, a moderated social media platform that enables civilized discussion and Q&A between Management and Shareholders.
About HPQ Silicon
HPQ Silicon Resources Inc. is a TSX-V listed resource company focuses
on becoming a vertically integrated and diversified High Purity, Solar
Grade Silicon Metal (SoG Si) producer and a manufacturer of multi and
monocrystalline solar cells of the P and N types, required for
production of high performance photovoltaic conversion.
HPQ’s goal is to develop, in collaboration with industry leaders,
PyroGenesis (TSX-V: PYR) and Apollon Solar, that are experts in their
fields of interest, the innovative PUREVAPTM “Quartz Reduction Reactors
(QRR)â€, a truly 2.0 Carbothermic process (patent pending), which will
permit the transformation and purification of quartz (SiO2) into high
purity silicon metal (Si) in one step and reduce by a factor of at least
two-thirds (2/3) the costs associated with the transformation of quartz
(SiO2) into SoG Si. The pilot plant equipment that will validate the
commercial potential of the process is on schedule to start mid-2019.
Disclaimers:
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”,
“expect”, “in the process” and other similar expressions which
constitute “forward-looking information” within the meaning of
applicable securities laws. Forward-looking statements reflect the
Company’s current expectation and assumptions, and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those anticipated. These forward-looking
statements involve risks and uncertainties including, but not limited
to, our expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to research
and development, the impact of competitive products and pricing, new
product development, and uncertainties related to the regulatory
approval process. Such statements reflect the current views of the
Company with respect to future events and are subject to certain risks
and uncertainties and other risks detailed from time-to-time in the
Company’s on-going filings with the securities regulatory authorities,
which filings can be found at www.sedar.com.
Actual results, events, and performance may differ materially. Readers
are cautioned not to place undue reliance on these forward-looking
statements. The Company undertakes no obligation to publicly update or
revise any forward-looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
For further information contact Bernard J. Tourillon, Chairman, President and CEO Tel (514) 907-1011 Patrick Levasseur, Vice-President and COO Tel: (514) 262-9239 www.HPQSilicon.com
Posted by AGORACOM-JC
at 11:39 AM on Wednesday, February 27th, 2019
Announcement today is as a result of a step by step study which was performed to investigate the effect production yield has on the purity of silicon end-product.
Theoretical calculations which were obtained in the previous phase were also validated
In conclusion, it was found that higher production yields actually enhance end-product purity, which confirms our previous calculations.
MONTREAL, Feb. 27, 2019 – PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR), (the “Company”, the “Corporation†or “PyroGenesis”) a Company that that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, announces today its latest testing results for PUREVAP™ Gen2, and provides a general update on its PUREVAP™ Project with HPQ Silicon Resources Inc (“HPQâ€).
This announcement today is as a result of a step by step study which
was performed to investigate the effect production yield has on the
purity of silicon end-product. Theoretical calculations which were
obtained in the previous phase were also validated. In conclusion, it
was found that higher production yields actually enhance end-product
purity, which confirms our previous calculations. Specifically, the
results of this extrapolation calculation indicate that a higher
production yield will enhance the final silicon purity, reaching 99.993%
(+4N) at 90% production yield.
Mr. P. Peter Pascali, President and CEO of PyroGenesis, provides this
update on PUREVAP™ in the following Q&A format. The questions, for
the most part, are derived from inquiries received from investors, and
analysts:
Q. For those that are new to the story, could you please provide an overview of the project and technology?
A. Most certainly.
HPQ is the owner of quartz properties. Quartz can be processed,
through multiple steps, into a high purity silicon metal which is an
important element in solar panels. It helps convert solar energy into
useful electricity. Many in the solar panel industry consider the cost
of converting quartz into solar grade silicon metal to be a limiting
factor in the growth of the solar panel industry.
PyroGenesis was first engaged by HPQ to demonstrate, on a laboratory
scale, that its proprietary PUREVAPTM process could produce high purity
silicon metal from quartz in just one step.
This could be significant to the solar panel industry since the
industry is highly dependent on high purity silicon metal in its solar
panels. Any reduction in the cost of high purity silicon metal would
benefit the industry as a whole, and if significant, could be game
changing.
The primary goal of the PUREVAP™ process is to reduce (i) capital
costs, and (ii) operating costs in the production of high purity silicon
metal. A side benefit of the PUREVAP™ process is that, at the same
time, it can replace polluting conventional processes, with a cheaper
and environmentally friendly alternative by reducing the carbon
footprint of current silicon metal production methods.
Specifically, PUREVAP™â€™s current targets are as follows:
Reduce CAPEX to transform quartz to solar grade silicon by between 60% (China) and 86% (“Rest of the World†or “ROWâ€);
Reduce OPEX to transform quartz to solar grade silicon by between 30% (China) and 60% (ROW);
Reduce carbon footprint to transform quartz to solar grade silicon by up to 96%;
Investigate new opportunities for high value niche applications that could also benefit from cheap high purity silicon.
Q. Where do we stand with the technology?
A. Let us first review the question in the context of what we have achieved to date:
We started this project in early 2016, a little over 2 years ago. By
June 2016, we had already demonstrated PUREVAP™â€™s ability to transform
quartz into high purity silicon metal exceeding 99.9+%, or 3N (3N
reflects 99.9% or 3 Nines). Before moving on let me put 3N in the
context of what we are trying to achieve:
Purity
Grade
Applications
Market Size
98.5-99.5% (1N-2N)
Metallurgical Grade
Feedstream to electronic and solar grade Silicon production
Additive for aluminum alloys
Feedstream to making fumed silica, silanes and silicone
> 2.2M T/yr
99.9 – 99.99% (3N-4N)
High Purity & Special Grade
Powders for batteries
SiAl targets for the glass industry
Industrial quality Si3N4
> 220 kT/yr
> 99.999% (5N+)
Solar Grade
Solar cells
> 400 kT/yr
Table 1
The potential uses of high purity silicon metal is depicted on Table 1
above. This market is typically divided into three broad grades:
Metallurgical Grade (1N-2N), High Purity & Special Grade (3N-4N),
and Solar grade (5N+).
One can see that 3N silicon metal addresses a significant market. As
we are developing a process to produce solar grade silicon metal, we
have discovered a way to produce 3N. To do so on a commercial basis
opens up another revenue stream, and effectively reduces project risk.
Once we demonstrated the ability to transform quartz into high purity
silicon metal, we next needed to demonstrate scalability. This we did
by the beginning of 2017. By this time, we had demonstrated scalability
of the process by increasing production from 1.1g to 8.8g of material.
Later in 2017, by Q3, we estimated that silicon production yield played
an important role on the final purity of the metal produced; PyroGenesis
theoretical calculations, assuming a 100% production yield, concluded
that the purity of the silicon produced, under various operational
conditions could, at commercial scale, range from 3N (99.984 % Si) to 4N
(99.996 % Si) for low purity feedstock, and to 4N+ (99.998 % Si) when
using high purity feedstock. Recent Gen2 tests reported not only confirm
these results, but exceed them and, as such, our baseline has now moved
from 3N+ to 4N+ which, it and itself, is quite noteworthy.
Q. What is the next step?
A. The next step will be the pilot plant where we
expect to produce silicon metal based on the results developed during
the GEN1 and GEN2 lab phase tests.
We are currently designing and building a 50 tonnes per year (TPY)
pilot plant to produce larger quantities of 4N+ silicon, which will then
be upgraded to solar grade silicon, with the ultimate goal of producing
test solar cells. We expect the pilot plant to be completed within the
next two quarters.
Q. Ok, but 4N is still not solar grade. How do you think you can achieve solar grade?
A. This is the interesting part, and one I don’t
think the market fully understands. We are still targeting 6N as our
ultimate goal however, in the interim, HPQ has identified a faster route
to market by the addition of Apollon Solar (“Apollonâ€). Apollon is a
private French company with longstanding expertise in Silicon
Purification and Crystallisation, Solar Silicon, Photovoltaic Cells and
Photovoltaic Modules. Simply put, Apollon is one of the world’s leaders
in renewable energies, and has an expertise in purifying/upgrading high
purity silicon metal even further to obtain solar grade silicon. Of
note, they also have an expertise in producing solar cells. This is a
huge addition to the PUREVAP™ process because it essentially means that
on the way to target 6N, we can use a lower level of purity which could
be further upgraded with Apollon’s expertise, thereby further reducing
overall project risk. In short, the time to market has been
significantly reduced with the addition of Apollon.
Q. What does this mean for PyroGenesis?
A. We are not a charity. We deploy assets for the
benefit of our shareholders, for whom there are many advantages with our
contractual relationship with HPQ. First, we are currently under
contract with HPQ to deliver and operate the pilot plant. Second, we are
entitled to a 10% royalty on all future silicon metal sales. Third, we
have a right of first refusal on the next phases of the project, the
first of which would be a commercial plant at 5,000 TPY (which is
expected to be ordered shortly after the pilot phase). Finally, we
retain the right to use the technology for other applications other than
the conversion of quartz to silicon, opening up new markets and
opportunities for PyroGenesis.
In short, this project is very meaningful to PyroGenesis and its shareholders.
Q. What are the next milestones?
A. These latest results were what we needed before
going flat out with the completion of the installation and commissioning
of the pilot system, which will be the next real milestone. It is
expected that the output from this system will be upgraded by Apollon to
solar grade material which will then be used to produce test solar
cells. We expect to produce our first solar cells made using PUREVAP™
sometime late 2019/early 2020. Shortly after that, a full commercial
plant will be commissioned.
Q. Are there any risks?
A. There are always risks with R&D, as you know,
and there is never a guarantee of success. However, if you ask me
generally about the risk of this project, I can tell you with 100%
certainty that the risks have been significantly reduced in our favor
since we started. We have considerably de-risked the project by doing
extensive tests on GEN1 and further validating our scale-up assumptions
with GEN2. We have gained invaluable experience with GEN2 which we have
implemented in the design of the pilot plant.
Of note, something else the market has not fully understood is that
along the way, we believe we have identified possible commercial uses
for the 3N+ material itself which, as I noted earlier, opens up new
commercial applications, and further reduces project risk.
Q. Do you still feel this technology will work?
A. I have said this before and I will say it again,
PyroGenesis does not have time or money to waste on projects that do not
have future potential. Each and every day PyroGenesis has to decide
where to allocate its resources, the most important of which is its
time. Plasma expertise, such as ours, does not grow on trees and we must
be very discerning as to where we dedicate this valuable resource. Do
we dedicate it to Additive Manufacturing (powders for 3D printers),
DROSRITETM, other development projects…or HPQ? The profit from the HPQ
relationship does not, in and of itself, justify dedicating such scarce
resources to the project. However, the royalty from the success of the
project, does.
So, to answer your question, yes, we are fully committed to its
technology, and believe more than ever before that it will be game
changing in its own right.
Talk is cheap, but as you can see, we currently hold over 21M common
shares plus over 17M warrants in HPQ. You can’t get more committed than
this.
Q. What would you advise investors?
A. Do your due diligence. Invest with full understanding, and…follow the money.
PyroGenesis Canada Inc., a TSX Venture 50® high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”,
“expect”, “in the process” and other similar expressions which
constitute “forward- looking information” within the meaning of
applicable securities laws. Forward-looking statements reflect the
Corporation’s current expectation and assumptions and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those anticipated. These forward-looking
statements involve risks and uncertainties including, but not limited
to, our expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to research
and development, the impact of competitive products and pricing, new
product development, and uncertainties related to the regulatory
approval process. Such statements reflect the current views of the
Corporation with respect to future events and are subject to certain
risks and uncertainties and other risks detailed from time-to-time in
the Corporation’s ongoing filings with the securities regulatory
authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual
results, events, and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking
statements. The Corporation undertakes no obligation to publicly update
or revise any forward- looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Neither the TSX Venture Exchange, its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) nor the OTCQB accepts responsibility for the
adequacy or accuracy of this press release.
Solar shines brightest for renewables-keen investors
Institutional investors surveyed by the Octopus Group have ranked grid-scale solar power as their top deployment target, amid plans to inject US$210 billion in the broader renewable sector within five years.
A poll of 100 names published by the firm on Monday found 43% of those managing a portfolio of renewables were invested in solar, ahead of firms invested in onshore and offshore wind (28% each), hydropower (27%) and waste-to-energy and biomass (an aggregate 24%).
Institutional investors ranked uncertainty with energy prices as a top obstacle (Source: Karnakata Tata)
Institutional investors surveyed by the Octopus Group have ranked
grid-scale solar power as their top deployment target, amid plans to
inject US$210 billion in the broader renewable sector within five years.
A poll of 100 names published by the firm on Monday found 43% of
those managing a portfolio of renewables were invested in solar, ahead
of firms invested in onshore and offshore wind (28% each), hydropower
(27%) and waste-to-energy and biomass (an aggregate 24%).
Of the respondents – a mix including pension funds, insurers and
banks with US$6.8 trillion in combined assets under management –
Australians (63%) were keenest on solar, followed by EMEA (58%), Asian
(45%) and UK firms (29%).
The industry was the most sought-after also among firms currently not
invested in renewables, although some appeared sceptical. Some 58% of
those managing a renewables-free portfolio claimed to be considering
solar plays, while 21% were not contemplating it and another 21% felt
unsure.
Five years to unlock US$210 billion
Even as they singled out grid-scale solar as their top target, the
polled investors promised to scale up allocations to all forms of
renewables, with US$210 billion set to be deployed within five years.
Private banks appeared the most ambitious, sharing plans for renewables
to represent 9.7% of their portfolios over the period. They were
followed by strategic investors (8.9%) and pension funds (7.8%), while
high-net-worth individuals and family offices (5.5%) and insurers (4.7%)
were the most reluctant.
The Octopus survey evidenced the renewables momentum won’t be
challenge-free, though. Energy price uncertainty, liquidity challenges
and skills shortages ranked as the top concerns for the polled
investors, although costs and regulatory barriers were also seen as
obstacles.
Europe before its subsidy-free hour
The Solar Finance and Investment conference held in London in late
January identified investors as the key enablers of subsidy-free solar
in Europe. Corporate PPAs and other emerging arrangements are easing –
although not fully dispelling – investors’ unease around merchant risks
and potentially low returns, it was argued.
The Octopus poll placed the continent as the most in-demand
destination for renewables investors. Of the top 10 countries and
region, only Australia (seventh) and Japan (10th) were non-European.
The survey produced a finding likely to be welcomed by subsidy-free
players. Almost one-in-two institutional investors piling into clean
energy worldwide was driven by stable cash flows (a driver for 48%) and
attractive risk-adjusted returns (40%); only diversification and ESG
considerations placed higher.
Posted by AGORACOM-JC
at 9:25 AM on Thursday, January 24th, 2019
MONTREAL, Jan. 24, 2019 — HPQ Silicon Resources Inc. (HPQ) (TSX-V “HPQâ€) is pleased to provide investors this corporate overview of the milestones attained since our 2014 entry in the Quartz exploration business and our 2015 decision to become a vertically integrated producer of Solar Grade Silicon Metal through the development of the PUREVAP™ Quartz Reduction Reactor (QRR). Shareholders and prospective investors are encouraged to review the following information in its entirety to understand the progress made and plans being implemented to transform HPQ into the lowest cost and greenest producer of Solar Grade Silicon Metal, as we commence 2019 with the final assembly of the PUREVAP™ Pilot Plant, “Gen 3†and it’s mid 2019 start-up.
Mr. Bernard J. Tourillon, President and CEO of HPQ-Silicon provides
his responses in the following Q&A format. The questions, for the
most part, are derived from inquiries received from investors,
investment professionals and industry participants. A table summarizing
the Purevap™ milestones appears on page 2 of this summary:
Q. To start,could you please briefly describe the focus and objectives of HPQ going forward?
A. Most certainly. Following the successful closing
of our $ 5,250,000 Financing in August 2018 and the December 2018
completion of our Beauce Gold Field assets spinout, HPQ is now entirely
focused on becoming a vertically integrated producer of solar grade
silicon metal. In 2019, we intend to:
Use our 50 tpa (tonnes per year) Pilot Plant, developed by our
partners PyroGenesis Canada Inc. (“PyroGenesis†or “PYRâ€), to
demonstrate the commercial potential of the PUREVAPTM “Quartz Reduction Reactors†(QRR)
process (patent pending), and its ability to convert Quartz (Silicon
Dioxide or SiO2) into High Purity Silicon Metal of 99.9% to 99.99% Si,
(referred to as 3N and 4N, respectively) in just one step;
Use the material produced by the Pilot Plant to finalize the best metallurgical pathway (UMG) to upgrade “HPQ PUREVAP™ Siâ€
(Silicon Metal) to Solar Grade Silicon Metal (SoG Si), through
collaboration with PYR and Apollon Solar (“Apollonâ€), and in doing so
becoming the world’s leading Low Cost, Low Carbon Footprint producer of
SoG Si;
HPQ expects to confirm that PUREVAPTM and UMG processes will:
Reduce CAPEX to transform Quartz to SoG Si by between 60% (China) and 86% (“Rest of the World†or “ROWâ€) 1;
Reduce OPEX to transform Quartz to SoG Si by between 30% (China) and 60% (ROW)1;
Reduce the Carbon Footprint to transform Quartz to SoG Si by up to 96%2;
Investigate new opportunities for high value niche applications that need the High Purity Silicon Metal that our PUREVAPTM QRR produces in one step.
Q. Could you please briefly describe what started HPQ
interest in becoming a vertically Integrated Producer of Solar Grade
Silicon metal?
A. Well, the short answer is: “Necessity is the
Mother of Inventionâ€. The long answer is that in 2014 HPQ had a number
of gold properties that contained extensive quartz veins with which gold
is typically associated. Quartz (Silicon Dioxide or SiO2) is the key
ingredient required for making Silicon Metal (Si).
Silicon Metal (Si), is one of today’s key strategic metals, like
Lithium and Cobalt, that is needed to fulfil the renewable energy
revolution presently under way.
By early 2015, HPQ management came to the realization that in order
for HPQ to succeed in the Quartz business, HPQ needed to transform its
low value quartz resources into a higher value material, Silicon Metal,
and ultimately Solar Grade Silicon Metal (SoG Si), which is a higher
purity form of Silicon Metal that allows the transformation of the sun’s
energy into electricity in photovoltaic (PV) modules.
In short, we needed to find a pathway to become a vertically
integrated producer of Si, and preferably SoG Si. That is when we
discovered PyroGenesis.
Q. Ok, its one thing to say “HPQ wants to become a
vertically integrated producer of Solar Grade Silicon metal†but
implementing is another. Could you please describe what makes the HPQ
plan unique?
A. Certainly. From the start we knew that HPQ could
not afford the time or money required to assemble a world-class
technical team with Silicon Metal (Si) or Solar Grade Silicon Metal (SoG
Si) expertise. To reach our goal, our choices were either a)
collaborate with a university, knowing that it would take years just to
pass the proof of concept phase, or b) outsource our R&D with a
technological partner that possesses proven expertise with high
temperatures processes, and a track record of successfully taking new
concepts, from the lab to commercialization phase.
During 2015, HPQ concluded that to convert our Quartz into Si, and
possibly SoG Si, we needed to convince PyroGenesis Canada Inc
(“PyroGenesisâ€), with their vast expertise on high temperature plasma
base processes, to partner with us.
PyroGenesis has an impressive track record of successfully taking new
concepts from the lab to commercialization, including but not limited
to, the following:
The US Navy, developing the PAWDS™ technology from lab scale to
finally being specified in the design of the new US Aircraft Carriers,
Plasma atomization for 3D printing;
More recently with the deployment of their DROSRITE™ technology.
PyroGenesis expertise is of such high level that:
In addition to the US Navy, during the last 2 months, PyroGenesis
has concluded exclusive partnerships with two multi-billion
conglomerates to commercialize specific applications they have
developed, from lab to commercial scale, on a global basis.
In 2015, HPQ’s Board of Directors accepted a testing proposal from
PyroGenesis regarding laboratory scale, proof of concept, metallurgical
testing of the PUREVAPTM QRR. The proposed program was to
validate its capacity to produce high purity silicon metal from HPQ
quartz in just one step (September 30, 2015 release).
In June 2016, the first successful lab scale tests were completed and
by test #6, results confirmed the game changing potential of the PUREVAPTM QRR process.
HPQ immediately approached PyroGenesis regarding additional testing
and the development of a pathway to building a pilot plant that could
validate the commercial scalability of the process as quickly as
possible. As they say, the rest is history.
Q. What motivated HPQ to move so fast to validate the commercial scalability of the PUREVAPTM QRR process?
A. The decision was simple; the first bench test
showed all equipment and data analyzers worked. By test #6, not only
did the system operate as designed, but also the PUREVAPTM QRR
process was already reaching its first major milestones, the ability to
transform quartz into high purity Silicon Metal (Si) exceeding 99.9+% Si
“3N†(June 29, 2016 release).
HPQ and PyroGenesis came to an agreement whereby HPQ would invest
100% of project costs for 90% of the revenues to be generated by
PUREVAPTM QRR and, with that, HPQ obtained the participation of a world
class technical team to work on our project of becoming a vertically
Integrated producer of Solar Grade Silicon Metal (SoG Si).
Fundamentally, the agreement allows both Parties to reap the rewards of
the new process to make High Purity Silicon Metal (Si) and eventually
SoG Si using HPQ Quartz and the PyroGenesis PUREVAPTM QRR.
On August 2, 2016, PyroGenesis and HPQ announced the terms under which HPQ would invest the funds and own the PUREVAPTM QRR’s
Intellectual Property3 (August 2, 2016 release), with PyroGenesis
taking responsibility for the bench testing, process design,
fabrication, assembly, and cold commissioning of the Pilot Plant.
Q. In your press releases you refer to Gen 1 and Gen 2 can you please describe Gen 1 and the testing milestones?
A. As we outlined above, the project started in 2015
with PyroGenesis’ technical team designing and building a laboratory
scale proof of concept PUREVAPTM QRR, the Gen1 reactor.
The Gen1 PUREVAPTM QRR laboratory scale equipment completed
15 tests between March 29th and July 22th 2016 under the scope of the
“Phase 1 – Proof of Concept Metallurgical Tests Programâ€. These tests
confirmed that the PUREVAP™ QRR concept of combining different
known steps into a one step process works at lab scale. With this
milestone achieved, we then agreed to expand our collaboration to go all
the way to Pilot Plant.
In September 2016, while initial Pilot Plant design was underway, HPQ
also ordered a new series of lab scale R&D tests using the Gen1 PUREVAPTM QRR
to provide invaluable input toward the design of the pilot plant, as
well as, determine the most efficient way of scaling up the PUREVAPTM QRR process to commercial scale production.
In November 2016, another key milestones was reached as Gen1 testing
results demonstrated that the PUREVAP™ QRR was capable of using SiO2
feed material below minimum industry specifications to produce Silicon
Metal (Si) of greater purity than what could be achieved by traditional,
status quo processes used to make Metallurgical Grade (98.5% to 99.5% Si) Silicon Metal4 today.
By the end of January 2017, in tests using a modified and expanded
Gen1 PUREVAP™ QRR reactor, the yield increased from less than 0.1 g to
8.8 g (test #32), an increase of approximately 9,000% (roughly one
hundred-fold), thereby confirming the potential scalability of the
process.
Ongoing work to the end of Q2 2017 validated our systematic and
methodical approach to the project and allowed PyroGenesis to advance
the detailed engineering and design of the pilot plant.
By the end of Q2 2017, it was clear that the Gen1 PUREVAP™ QRR had
reached its maximum usefulness so the decision was made to build a Gen2
PUREVAP™ QRR, pushing the design envelope of the lab scale system to a
point that will allow it to be operated in a semi-batch mode to increase
Silicon Metal (Si) yields. This would provide further insight into
process improvements needed for the Pilot Plant, thereby saving millions
of dollars in future development work.
Q. Now during 2017 you announced an agreement with
Apollon Solar, can you diverge a bit and tell us how that came about,
and the impact?
A. In 2017, we attracted the attention of Apollon
Solar SAS, (“Apollonâ€). This is significant because Apollon is a private
French company with longstanding expertise in Silicon Purification and
Crystallisation, Solar Silicon, Photovoltaic Cells and Photovoltaic
Modules. The team at Apollon has become one of the world leaders in the
development of processes to refine Solar Grade Silicon Metal “SoG Si
UMGâ€. They achieved, an independently confirmed, world record
conversion efficiency of 21.1% with a monocrystalline ingot, for a solar
cell made with 100% “SoG Si UMGâ€.
Apollon first completed a technological audit of the Gen1 PUREVAP™
QRR results to evaluate the potential of the innovative PUREVAP™ QRR
process. They concluded that successful commercial scaling-up of the
PUREVAP™ process could lead to the production of solar quality silicon
at a significantly lower cost compared to those of competing process
technologies (examples include Siemens chemical process, Elkem Solar,
Silicor Materials, etc.).
As a result, in December 2017, HPQ and Apollon announced the signing
of a consultancy agreement whereby Apollon agreed to transfer knowledge
it has acquired in solar silicon over the last 20 years for the benefit
of HPQ and PyroGenesis.
Q. That’s all very exciting, now can you discuss Gen 2 and the commercial scalability of the PUREVAPTM QRR process?
A. The Gen2 PUREVAP™ QRR incorporates important
process modifications identified during Gen1 testing and is designed to
be a scale replica of the planned larger pilot plant (Gen3 PUREVAP™
QRR). In Q2 of 2017 we set about constructing the newly redesigned
reactor while awaiting the final report from the Gen1 work. In Q4, as
Gen2 was being finalized, HPQ received a final report on the Gen1
PUREVAP™ QRR testing and we learned that:
The highest silicon tested for bulk purity was produced in test #75 and measured 99.92% Silicon Metal (Si)5.
Si yield could be increased by increasing production yield, which had been constrained around an average of about 3% in Gen1.
Theoretical calculations indicated that purity of the Si produced
under various conditions could range from 3N (99.984 % Si) to 4N (99.996
% Si) with the addition of volatilization agents for low purity
feedstock, to over 4N (99.998 % Si) when using high purity feedstock5.
These results were incorporated into Gen2 and, by November 2017, the
Gen2 PUREVAP™ QRR was operational, allowing the de-facto start of the
pilot plant testing and commissioning, thereby reducing the risk profile
of the project and allowing additional process modifications and
further proof of commercial scalability work to be done in parallel with
major plant fabrication, to keep advancing work.
JANUARY 2018
PyroGenesis confirmed that the Gen2 PUREVAP™ QRR was operating as
designed and yielding results that were in line with expectations. By
this time, we had also arranged monthly meetings with Apollon and
PyroGenesis to benefit from the backend expertise of Apollon in our
ongoing test work as we continued to plan for the Gen3 Pilot Plant
design.
Gen2 PUREVAP™ demonstrated it could be operate and perform under the
conditions demanded for optimum operational parameters to produce the
purities required in one step. Again, this was another major milestone
because, to our knowledge, there is no other process that does this in
the world.
With the main design and equipment performance characteristics reached, significantly increasing the Yield6 and the Production Yield7 of the Gen2 PUREVAP™ became the next key objectives in contributing to final purity.
FEBRUARY 2018
By mid February 2018, the Gen2 PUREVAP™ was proving to be an
invaluable bench test platform and the results were used to scale back
on the size of the planned Pilot Plant from 200 tonnes per year to 50
tonnes per year. This had a massive benefit on our planned costs,
timing, and on locating the Pilot Plant test site – right inside the
PyroGenesis testing facility, another huge cost saver.
By the end of February 2018, the Gen2 reactor was operating within
the 90th percentile of its achievable production yield. By mid April
2018, as a direct result of continuous process improvements done by
PyroGenesis, Gen2 PUREVAP™ test #14 attained Yield and Production Yield
numbers that surpassed theoretical expectations. The total mass of
Silicon Metal (Si) produced (yield) during test 14 was 101.45 gr; and
conversion of material, referred to as Production Yield, of 34.3%, the
highest to date.
APRIL 2018
PyroGenesis completed a scheduled audit of the Gen2 PUREVAP™
equipment for wear and tear following test#14. The audit was needed to
help identify critical operational parameters for the PUREVAP™ Pilot
Plant and allowed the evaluation of additional design modifications that
could be implemented for further tests using the Gen2 PUREVAP™.
JULY 2018
By the end of July 2018, the Gen2 PUREVAP™ equipment had been
refurbished, re-assembled and modified to incorporate the latest design
modifications and was ready to start a new series of at least 8
additional tests focused on:
Continuing to optimize conditions for the Gen2 PUREVAP™ and the planned Gen3 PUREVAP™ Pilot Plant operation;
Increasing the Yield and the Production Yield;
Testing the Purity range of the Silicon Metal (Si) from low purity
feed stock (98.84% SiO2) and ultra high purity feed stock (> 99.9%
SiO2), analyzed using ICP-OES8;
Q. It sounds like Gen2 is giving great results and
contributing to the Pilot Plant final parameters. You mentioned CO2
(“Greenhouse Gas†or “GHGâ€) reductions as another positive feature of
the PUREVAP™ process can you elaborate on that?
A. Yes we are very excited about this aspect of the project. First, readers must understand that: “It’s
not because photovoltaic solar panels do not emit CO2 (GHG) while
producing electricity that solar energy is not a significant source of
GHGâ€.9 In fact solar power has its greenhouse gas issues that lurk
behind the scenes. Seventy percent (70%) of the GHG generated when
building a new solar farm10 comes from the production of the Solar Grade
Silicon Metal (SoG Si) needed for the fabrication of the solar panels.
Manufacturing SoG Si in China, the world’s largest producer,
generates an astounding 141 kg of CO2 per kg of SoG Si produced. In
Germany that ratio is reduced to 87.7 kg CO2 per kg of SoG Si produced.
What we see is that solar power is not that panacea of low carbon if one
looks at the entire process from start to finish.
96% REDUCTION IN CARBON FOOTPRINT – OPPORTUNITY TO RESOLVE SOLAR PARADOX
In August 2018, PyroGenesis prepared a report11 that found that the
PUREVAPtm QRR process operated in Quebec should only produce 5.4 kg CO2
per kg of SoG Si produced, a 96% reduction in the carbon footprint
compared to existing processes. This is why we are so excited about this
“green†opportunity revolutionizing the solar energy industry.
Q. Technically it sounds like great progress is being made, how is HPQ set financially today?
Thanks to these new financings HPQ, in collaboration with its
technical partners, will now be able to dedicate its efforts and
energies toward the fulfilment of the ambitious commercial validation of
the PUREVAPtmQRR process and the production of Solar Grade Silicon Metal (SoG Si) at the Pilot Plant level.
Q. Sounds like you have the financing under control. You
mentioned at the onset that HPQ and partners are targeting a Pilot
Plant, with bench test work well in hand and financing complete, can you
give a status update of the Pilot Plant that you are now referring to
as Gen3?
As of the date of this corporate update, the Gen2 PUREVAP™
equipment is still being used by PyroGenesis to test different
operational conditions in order to gain more information about future
Gen3 PUREVAP™ operation and testing is also ongoing to find new ways of increasing the Yield and the Production Yield of the Gen2 PUREVAP™.
Finally, a new progress report on the test results completed in 2018 with the Gen2 Purevap should be ready soon.
Q. How transferable are the results obtained from Gen2 to the pilot plant?
A. We believe they are very transferable. In fact,
we expect the results to be even better at larger scale. By increasing
the scale, we are increasing the production rate. As you can imagine, we
are already extremely excited about the results we have had with Gen2,
and at a larger scale, the production rate is automatically higher
which, as we have already proven with Gen1, should lead to a higher
conversion yield and better purity.
Q. HPQ has started talking about using a metallurgical process to transform the Si produced via the PUREVAPTM QRR to produce SoG Si. Is this just a semantic change or is HPQ changing its objectives?
A. It is more semantic than anything else; the
project is advancing towards meeting our stated objectives when we
started it in 2015:
“The “PUREVAP ™ Quartz Reduction Reactor is a proprietary process
that uses a plasma arc within a vacuum furnace. This unique technology
should allow HPQ (Uragold then) to convert its (…) Quartz Projects into
the highest purity, lowest cost supplier of Solar Grade Silicon Metal
(…) to the solar industry.
But this may be a good opportunity to explain in detail what makes the PUREVAPtm QRR such a game changing technology and why we have started to refer to it as a “Second Generation (2.0) Carbothermic processâ€.
Presently, using the status quo to produce Solar Grade Silicon Metal
(SoG Si), you first need to transform Quartz (Silicon Dioxide or SiO2)
into Metallurgical Grade Silicon Metal (MG Si) and then the MG Si needs
to be further purified produce SoG Si.
PRESENT LEGACY CARBOTHERMIC PROCESS
The first step in making SoG Si involves mixing Pure Quartz (99.5%+
SiO2), Low Ash Carbon and Wood Chips and heating the mixture to very
high temperatures in an electric arc furnace to create the Carbothermic
process required to reduce the SiO2 to Metallurgical Grade Silicon Metal
(MG Si).
The traditional smelter process to make MG Si requires six (6) tonnes
of raw material to produce one (1) Tonne of Silicon Metal (Si).
By its design, the impurities contained in the raw material end up
being concentrated in the final product, that is why traditional
smelters need (99.5%+ SiO2) to produce 98.0% Si.
The maximum purity that can be attained in traditional smelters is
around the 99.5% Si threshold, but that requires additional post
treatments. On average these postproduction processes can increase the
purity of the MG Si by a factor ranging from ½ N to 1 N.
For Silicon Metal (Si) to be used in the Solar and High Tech
Industries, higher purity levels than what can be attained by standard
carbothermic reduction are required. Presently, less then twenty
percent (20%) of MG SI produced by smelter meets the demanding feedstock
purity specs required for the different additional purifications steps.
CHEMICAL DISTILLATIONS PROCESS (Siemens)
Chemical distillations process (Siemens process) to purify MG Si to
purity required for Solar Grade applications or electronic applications
has become the gold standard, with over 95% of the world SoG Si produced
through chemical distillations, even with it negative environmental
footprint.
Producing SoG Si (Polysilicon) via chemical distillations requires
between 72,000 KWh/T up to 120,000 kWh/t and as the term clearly
indicates chemical distillation implies that further refinement involves
the use of harsh chemicals like hydrochloric acid, and the final
products include liquid silicon tetrachloride and polysilicon. Each ton
of polysilicon is manufactured at the cost of three to four tons of
these hazardous by-products. When silicon tetrachloride is exposed to
water it releases hydrochloric acid, which causes acidification of soil
as well as the emission of toxic fumes.12
For many years, companies have been searching and investing funds
looking for a metallurgical alternative to Chemical distillations
process to transform MG Si into SoG Si.
Two groups, Elkem and Ferroglobe have been able to demonstrate, at
commercial scale, the technical viability of using metallurgical process
to further purify what is essentially 2N MG Si (99.0% Si) into a 5N+
SoG Si (UMG) that can be used to produce solar cells that deliver
efficiencies and yield ratios which compare very favourably with
photovoltaic industry benchmarks.13
The main advantage of a metallurgical process is the low operational
cost, (for each individual step and total) combined with lower energy
consumption for producing the UMG SoG Si (35,000 kWh/t versus a minimum
of 72,000 KWh/t).
The biggest drawback of this process and the reason why, until now,
it has not become the industry standard is that the CAPEX cost
associated with every operational step (Slag Treatment, Leaching,
Solidification and Post Treatment) are high, due to size and capacity
needed to purify what is essentially 2N MG Si (99.0% Si) into a 5N+ SoG
Si (UMG).
The fact that the operational cost saving are marginal on relative
term while the CAPEX (Cost per kg of annual capacity matrix) associated
with a complete metallurgical process to make UMG SoG Si is equivalent
to the CAPEX (Cost per kg of annual capacity matrix) of building a
chemical distillation process (Siemens) plant, is the only reason why
metallurgical processes to make UMG SoG Si have not become mainstream in
the industry.
Q. Now that is all very interesting, but if big companies
like Elkem and Ferroglobe have not been able to make metallurgical
processes work, why should we believe that HPQ with it’s PUREVAPTM QRR can?
A. It really comes down to big corporate culture.
Our approach to the problem is disruptive; we are not looking at
tweaking existing process to transform Quartz (Silicon Dioxide or SiO2)
to Metallurgical Grade Silicon Metal (MG Si) or developing a new process
that will be more efficient at removing the impurities from MG Si to
produce Solar Grade Silicon Metal (SoG Si). We are looking for a new
pathway of reducing Quartz (Silicon Dioxide or SiO2) to Solar Grade
Silicon Metal (SoG Si) by developing the PUREVAP™ QRR a “Second Generation (2.0) Carbothermic processâ€.
Imagine a young engineer walking into a meeting and telling his
bosses that the billions of dollars invested in the technology assets of
the company should be scrapped for a brand new concept. Those bosses
grew up, as it were, on the existing technology. There is no way that
is going to happen, so big corporations spend all their effort tweaking
the existing process.
It takes an upstart that is unencumbered with this corporate culture
to bring about change. Examples include Microsoft with IBM, Tesla and
GM, as simple examples of this concept.
This is what we are working on accomplishing and we believe that the PUREVAPtm QRR is that game changing disruptive technology for Solar Grade Silicon Metal.
Q. Ok, its one thing to say: the PUREVAPTM QRR is a game changing disruptive technology, but why and more important when will HPQ be in a position to demonstratethat the project is truly advancing toward that tipping point?
A. We, HPQ and technical partners PyroGenesis and Apollon Solar, have identified the following reasons why the PUREVAPtm QRR process will become the game-changing technology that could revolutionize the solar energy industry:
Using metallurgical process to purify 2N MG Si (99.0% Si) into a 5N+ SoG Si (UMG) is technically feasible;
The costs (CAPEX and OPEX) of removing, with metallurgical
processes, multiple N of impurities from MG Si to produce 5N+ SoG Si
(UMG) are prohibitive and make these process not financially feasible at
present;
Increasing by one (1) or better yet two (2) N the purity of the
Silicon Metal (Si) produced during the carbothermic phase of converting
Quartz (Silicon Dioxide or SiO2) to Si, for the same (CAPEX and OPEX)
costs as traditional smelters incur to produce 2N MG Si (99.0% Si),
should generate significant reductions of (CAPEX and OPEX) costs to make
UMG SoG Si;
This is what our Gen1 PUREVAPtm QRR results indicated should happen at commercial scale, and that is what the Gen3 PUREVAPtm QRR was built to demonstrate at commercial scale.
So, during 2019, as the Gen3 PUREVAPtm QRR pilot plant
confirms the key working hypothesis of the November 2017 Gen1 based
theoretical calculations is working at commercial scale, is when we expect to start receiving inquires from players in Silicon Metal and Solar Grade Silicon Metal industries.
If we can demonstrate a capacity to produce, in one step, a Silicon
Metal (Si) with a purity that range from 3N+ to 4N+ from low purity
Quartz (Silicon Dioxide or SiO2) feedstock, interest may also come from
Solar players, since we would be starting to validate our claim that our
PUREVAPtm QRR and UMG process will be the cheapest and greenest way to produce SoG SI in the world.
This does not mean that they are not looking at what we are doing,
“au contraireâ€â€¦ But presently, we are attracting mostly interest from
industry participants that have invested significant funds developing
Quartz resources looking for ways of increasing the economic model of
their projects.
Finally, shareholders and prospective investors would be wrong to
assume that nothing will happen until then. As stated above, the Gen2
PUREVAP™ equipment is still being used to test different operational
conditions in order to gain more information about future Gen3 PUREVAP™
operations and testing, to find new ways of increasing the Yield and the
Production Yield of the Gen2 PUREVAP™.
A new progress report on the test results completed in 2018 with the Gen2 Purevap should be ready soon.
Q. With Solar Energy Prices now at Parity with Natural Gas and Coal, is there still a need for a new process like thePUREVAPTM (QRR)?
A. Yes, actually more than ever, as the size and
speed of future investment in renewables energy is dependent on an
ever-declining cost per watt model going forward, while the GHG concerns
are becoming more challenging to governments and industry.
Over the last 40 years, solar energy innovations, financed mostly by
government incentives, have allowed solar energy prices to reach parity
with most fossil fuels today14. While this type of approach has
generated phenomenal success regarding the cost per watt matrix, this
approach is also responsible for phenomenal long term and short term
market dislocation.
One of the most important dislocations is related to the costs (CAPEX
and OPEX) of making Solar Grade Silicon Metal (SoG Si). Process
improvements for making SoG Si have plateaued while returns for
producing SoG Si are vanishing for investors, making financing of new
high purity silicon capacity using old processes to turn MG Si into SoG
Si difficult. HPQ solves this problem.
As figures 5 and 6 demonstrates, without new processes (like the
PUREVAPTM QRR) that can bring about a new leg down in the cost (CAPEX
and OPEX) of making SoG Si, this situation will either lead to
production bottlenecks and potential shortage of SoG Si to meet demand.
As with all commodities, this will result in a surge in the price of
silicon, causing an unexpected increase in the price of solar energy.
CAPEX reduction as it pertains to the cost of making SoG Si have
plateaued around the US $35 Cost per Kg of annual Capacity in China and
US$ 50 Cost per Kg of annual Capacity in the Rest of the World.
Figure 5 clearly demonstrates the disruptive Capex potential (US$) of the PUREVAPTM QRR process.
Figure 6 for its part demonstrates that, even in 2018, the cost curve
for SoG SI suggests that reductions in the OPEX costs had now plateaued
and that a longâ€term SoG Si price below USD 14/Kg is simply not
feasible. It is clear that to break this plateau, new processes like
the PUREVAPTM QRR will need to reach commercial viability.
Q. According to a specialized publication15, Solar Grade Silicon Metal (SoG Si) consumption should decline to 3g/W by 2022, from 4g/W in 2018, how will this new reality affect HPQ Business Model?
A. My answer may sound counter intuitive, but HPQ sees this as a
positive factor for our PUREVAPTM QRR + UMG project going forward. The
effect of the decline will negatively impact mainly the highest cost
producer, but a new process that can cut CAPEX and OPEX costs as much as
our PUREVAPTM QRR + UMG project appears to be on the threshold of
doing, will definitively benefit the entire industry and future
consumers, possibly leading to the breakout needed to catapult solar
energy ahead of carbon based energy for future generations.
What is important to realize is that demand for SoG Si is a
combination of demand for each new GW of solar energy for the consumer
and the SoG Si consumption needed to produce that new GW.
What is also shown in Figure 6 is the demand need for increased
amounts of SoG Si required to meet the demand growth for solar energy:
2018 was projected at 97 GW @ 4.0 g per W; ≈ 388,000 MT of SoG Si demand;
2019 was projected at 113 GW @ 3.7 g per W; ≈ 418,000 MT of SoG Si demand;
2020 was projected at 129 GW @ 3.5 g per W; ≈ 451,000 MT of SoG Si demand.
Future demand projections for solar energy is such that even at 3.5 g
thresholds, demand for SoG Si in 2020 should exceed the 451,000 MT
mark, and that can be directly related to the fact that Solar Energy
demand grows from its present two percent (2%) market share of the
global electricity generation capacity to the ten percent (10%)
threshold anticipated by 203016.
This translates into a demand in US$ for SoG Si that will grow from US$ 7.1 B in 2018 to over the US$ 11.8 B mark by 202817.
Q. An often-asked question is, how comfortable are you with the patent application?
A. The short answer is: very comfortable. PyroGenesis is leading the
patent application, which is progressing as expected. Given PyroGenesis
vast experience in obtaining patents and their $1,950,000 investment in
HPQ at a premium in August, this question should be put to rest once
and for all.
Q. Some investors/shareholders are skeptical about the whole process. Do you have any comments?
A. Well, they should meet the engineers! Now there is a skeptical
bunch and that is natural with any new process as groundbreaking as
this. Every step of the way has brought its share of challenges but has
also brought about many more positive surprises and developments. This
is the immense competitive advantage HPQ has as a result of bringing
together the engineering brainpower of PyroGenesis and Apollon Solar.
Seriously, we are talking about a process that potentially could be game
changing by several magnitudes. Who wouldn’t be skeptical? You would
have to be a fool not to be. Adding to this is the fact that the
results to date are beyond our expectations, which, in a weird way,
fuels the “too good to be true†skepticism, no? On the other hand, how
many chances do you get to invest into such potential, at 6 cents a
share and market cap of CAD$13 million, when our strategic partner and
the Government have invested CAD$5,250,00 at a Company valuation of
CAD$26 million? Food for thought!
Q. What about the quartz properties? The last we heard about
quartz exploration was in Q4 2017 when you announced a drilling
campaign on the Ronceveaux?
A. We are still fully invested in our 100% owned Martinville and
Ronceveaux quartz properties. However we decided to hold off on quartz
exploration to allocate exploration funds for geophysics and geology
work on the Beauce Gold property.
Now that the spin-off of Beauce Gold Fields is done, we intend to go
back to Martinville and Ronceveaux properties to bulk sample quartz as
test feed for the Gen3 PUREVAP reactor. For the next twelve (12) to
twenty-four (24) mounts our need in Quartz as feedstock is limited to
about 150 MT for 2019-2020.
Q. Ok so you have talk a lot about your plans for the solar
market but in your first answer you mentioned silicon for batteries,
what is that about?
A. From phones to electric cars, batteries play important role for
just about everyone on earth, and Si usage in the batteries space is
increasing. The most promising new type of battery being developed
presently is Lithium Silicon Anode Batteries (Li-Si
Batteries). Researchers have found that by replacing the graphite with
silicon in a standard lithium battery, your drastically improve
performance. Anyone who owns a mobile phone or for that matter, an
electric car, wishes that the battery would charge faster and last
longer.
For everybody involved in this project it has given an appreciation
of silicon metal, and some surprises have included opportunities that
may have an impact on the lithium ion battery industry. We will not
retire the Gen2 reactor as we did Gen1 but we will use it to pursue some
of the interesting ‘accidental outcomes’ from our efforts to develop a
new pathway to make clean energy cleaner and more cost efficient.
Q. Conclusion?
A. There is no other way to say it, our belief that PUREVAP™ process
is going to become a game-changing event that has the potential to
revolutionize the solar energy industry has not waned one bit since we
made our first bold statements in 2015. The project is advancing, the
success we have attained in less than 3 years is spectacular and the
de-risking that has occurred with every successful phase is significant.
In short, all three partners are happy with the progress to date and
stand firmly behind the project. We are more convinced than ever that
we will be successful in having a commercially viable process at the end
of the 2019. Investors need to remember that we are just at the start
of this process and that we have more exciting developments moving
forward then what we have already accomplished to this point. The future
of HPQ is very bright – no pun intended.
This News Release is available on the company’s CEO Verified Discussion Forum, a moderated social media platform that enables civilized discussion and Q&A between Management and Shareholders.
About HPQ Silicon
HPQ Silicon Resources Inc. is a TSX-V listed resource company
planning to become a vertically integrated and diversified High Purity,
Solar Grade Silicon Metal (SoG Si) producer and a manufacturer of multi
and monocrystalline solar cells of the P and N types, required for
production of high performance photovoltaic conversion.
HPQ’s goal is to develop, in collaboration with industry leaders,
PyroGenesis (TSX-V: PYR) and Apollon Solar, that are experts in their
fields of interest, the innovative PUREVAPTM “Quartz Reduction Reactors
(QRR)â€, a truly 2.0 Carbothermic process (patent pending), which will
permit the transformation and purification of quartz (SiO2) into high
purity silicon metal (Si) in one step and reduce by a factor of at least
two-thirds (2/3) the costs associated with the transformation of quartz
(SiO2) into SoG Si. The pilot plant equipment that will validate the
commercial potential of the process is on schedule to start mid-2019.
Disclaimers:
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”,
“expect”, “in the process” and other similar expressions which
constitute “forward-looking information” within the meaning of
applicable securities laws. Forward-looking statements reflect the
Company’s current expectation and assumptions, and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those anticipated. These forward-looking
statements involve risks and uncertainties including, but not limited
to, our expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to research
and development, the impact of competitive products and pricing, new
product development, and uncertainties related to the regulatory
approval process. Such statements reflect the current views of the
Company with respect to future events and are subject to certain risks
and uncertainties and other risks detailed from time-to-time in the
Company’s on-going filings with the securities regulatory authorities,
which filings can be found at www.sedar.com. Actual results, events, and
performance may differ materially. Readers are cautioned not to place
undue reliance on these forward-looking statements. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements either as a result of new information, future
events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
For further information contact
Bernard J. Tourillon, Chairman and CEO Tel (514) 907-1011 Patrick Levasseur, President and COO Tel: (514) 262-9239 www.HPQSilicon.com
Shares outstanding: 222,284,053
1 PyroGenesis Budgetary cost number for a 2,5K TPA Purevap, Apollon Rough Order of Magnitude Costing for a 2,5K UMG process 2 PyroGenesis Canada Inc. Technical Memo: “TM-2016-707 REV 01, (July 2018),- Purevap system – Carbon Footprint study 3
PyroGenesis retains a royalty-free, exclusive, irrevocable worldwide
license to use the process for purposes other than the production of
silicon metal from quartz. Should PyroGenesis develop any other such
application, HPQ Silicon shall have a right of first refusal in the
event of any sale or otherwise disposal. 4 http://pyrometallurgy.co.za/Pyro2011/Papers/083-Xakalashe.pdf5 PyroGenesis Canada Inc. Technical Memo: “TM-2017-830 REV 00, – Final Report-Silicon Metal Purity Enhancement 6 Total mass of Si produced during one test 7 Production Yield is the conversion efficiency of Quartz into Silicon Metal of the process 8 Inductive coupled plasma optical emission spectrometry 9 https://www.economist.com/news/science-and-technology/21711301-new-paper-may-have-answer-how-clean-solar-power10 Assessing the lifecycle greenhouse gas emissions from solar PV and wind energy: A critical meta-survey, Energy Policy , February 2014, Pages 229-244 11 PyroGenesis report – Silicon SoG Carbon Footprint TM-2016-708, revision #2 12 https://www.azocleantech.com/article.aspx?ArticleID=831 13 Ferroglobe PLC, Aug. 14, 2018 release. 14 http://news.mit.edu/2018/explaining-dropping-solar-cost-1120 15 https://www.pv-tech.org/editors-blog/china-531-to-accelerate-demise-of-multi-polysilicon-consumption-decline-to 16 (Canadian Solar latest investor presentation) 17
(Deutsche Bank, Future Market Insights report titled, “Polysilicon
Market: Global Industry Analysis 2013-2017 and Opportunity Assessment
2018-2028”)
Figure 1 – Quartz to MG Si process
Figure 1 – Quartz to MG Si process
Figure 2 – Chemical Process (Mg SI to SoG)
Figure 2 – Chemical Process (Mg SI to SoG)
Figure 3 Metallurgical Process (MG si to SoG Si)
Figure 3 Metallurgical Process (MG si to SoG Si)
Figure 4 PUREVAP
Figure 4 PUREVAP
Figure 5 CAPEX analysis (US$ Cost per Kg of annual Capacity)
Figure 5 CAPEX analysis (US$ Cost per Kg of annual Capacity)
