Agoracom Blog

HPQ Shatters Fumed Silica Tech With Reductions Of 93% CapEx, 90% Energy and 84% Greenhouse Gases

Posted by Alavaro Coronel at 9:08 AM on Thursday, June 6th, 2024

HPQ Silicon is on the verge of disrupting the manufacturing process of Fumed Silica and becoming the sole provider capable of satisfying the strong demand for low carbon Fumed Silica products.

How disruptive is the HPQ Silicon Process?

Energy Consumption 90% Lower
Greenhouse Gases 84-88% Lower
Capital Costs 93% Lower
Hydrogen Chloride Gas Complete Elimination
GIANTS OF FUMED SILICA MARKET HAVE TAKEN NOTICE AND SIGNED NDAs

More than just talk, the Fumed Silica industry has taken notice as evidenced by multiple NDAs with leading manufacturers immediately after HPQ announced the successful production of Fumed Silica samples through its proprietary Reactor technology.

It’s time for investors to take a closer look at the groundbreaking strides HPQ is making in reducing the carbon footprint, while also shattering the economics of the Fumed Silica industry.

These multiple non-disclosure agreements with leading manufacturers in the Fumed Silica space attest to HPQ’s remarkable achievements. But what exactly is Fumed Silica, and why is the industry buzzing about it?

UNVEILING FUMED SILICA

Fumed Silica, a versatile micro-powder, isn’t just another industrial substance. Its potential to reshape numerous industries, from cosmetics and toothpaste to powdered foods, makes it a game-changer across personal care, pharmaceuticals, agriculture, adhesives, construction, batteries, and beyond.

A MILESTONE IN GREEN ENGINEERING AND COMMERCIALIZATION PATHWAY

The company has taken a significant step towards commercialization and is advancing with the pre-commissioning of a 50 tonnes per year (TPY) FSR Pilot Plant, signalling promising prospects.

OPERATIONAL PILOT PLANT BY EARLY IN Q3

The pre-commissioning phase is progressing well, setting the stage for the pilot plant’s operational launch in Q3. This milestone is pivotal as HPQ aims to transition from lab-scale production to commercial-grade outputs, addressing the high demand for eco-friendly fumed silica. The pilot plant will initially produce fumed silica with specific surface areas between 150 and 200 m²/g, eventually targeting over 300 m²/g for food and pharma applications.

MULTIPLE COMMERCIAL PLANTS GLOBALLY

The company is preparing for a future that could see the deployment of numerous 1,000-ton per year reactors to meet global demand. The local production model reduces transportation costs and environmental impact, further enhancing HPQ’s competitive edge.

WORDS FROM HPQ CEO

Bernard Tourillon, President and CEO of HPQ Silicon and HPQ Silica Polvere, stated,

“The materials produced will be sent to several potential clients under nondisclosure agreements for qualification. These potential clients, who have expressed keen interest in our material, could become strategic partners in our journey. We aim to negotiate offtake agreements for our low-carbon fumed silica material with them.”

ENHANCING ECONOMIC VIABILITY
The updated technical and economic study reveals remarkable cost efficiency and market potential:

Capital Expenditure: Around US$10 per Kg of annual capacity, drastically lower than the traditional US$146 per Kg, reducing entry costs by about 93%.
Energy Efficiency: Consuming 10-15 KWh per Kg of fumed silica, versus the conventional 100-120 KWh, marking a 90% reduction.
Profit Margins: Revised EBITDA margins for fumed silica with 150 m²/g surface area range from 72% to 80%, significantly higher than the industry average of 20%.
These figures underline the transformative potential of HPQ’s technology, which not only slashes production costs but also enhances environmental sustainability.

SOLE PROVIDER OF LOW CARBON FUMED SILICA
Ceo Tourillon emphasized,

“The Fumed Silica Reactor technology has the potential to change fumed silica manufacturing for the better, and HPQ Silica is uniquely positioned to be the sole provider capable of supplying the materials required to meet the increasing demand for low-carbon fumed silica products.”

WATCH THIS INTERVIEW FOR IN-DEPTH INSIGHTS
HPQ Silicon progress towards commercializing its Fumed Silica Reactor technology marks a pivotal moment for investors seeking promising opportunities in the green engineering sector.

To gain a deeper understanding of HPQ’s strategic vision and groundbreaking achievements, watch the exclusive interview with CEO Bernard Tourillon. Discover how HPQ is poised to transform the fumed silica market with its cutting-edge technology and strong market positioning.

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