What You Need To Know

• Independent third-party validation confirms commercial-grade 150 fumed silica produced at pilot scale
• Validation performed by a potential customer under an existing Letter of Intent
• Results support ongoing commercialization discussions, including with the party under LOI
• Performance metrics, including viscosity, meet or exceed benchmark specifications
• Planning initiated for a potential dedicated production site as demand visibility improves

Here’s how HPQ Silicon Inc. is positioning its proprietary process as a simplified, lower-barrier alternative with the potential to materially change production economics in a legacy industrial materials market.

A NEW APPROACH TO A LEGACY INDUSTRIAL MATERIAL

Fumed silica is a critical additive used to control thickness and stability in products ranging from toothpaste and cosmetics to adhesives, coatings, inks, and advanced industrial formulations. Despite its broad use, the industry has relied for decades on complex, fossil-fuel-intensive, multi-step manufacturing processes that are costly, environmentally burdensome, and dominated by a small number of global suppliers.

HPQ’s approach is fundamentally different. Its process converts quartz directly into fumed silica in a single step, eliminating several traditional intermediates. The result is a simplified production pathway that has the potential to reduce complexity and materially alter the cost structure associated with fumed silica manufacturing.

WHY INDEPENDENT VERIFICATION MATTERS

While HPQ had previously demonstrated promising lab-scale results, commercialization in industrial materials depends on more than internal testing. Customers must confirm that a product performs within their own application and process requirements.

That hurdle has now been cleared.

Independent testing conducted by a potential customer under LOI confirmed that HPQ’s pilot-scale material meets commercial-grade 150 specifications, including surface area and viscosity—two of the most important performance metrics buyers evaluate.

“Until we had gotten this result, we were making a big claim. Now, we have the data to prove it.”
— Bernard Tourillon, CEO, HPQ Silicon Inc.

FROM TECHNICAL PROOF TO COMMERCIAL DISCUSSIONS

Commercial-grade 150 is not an experimental specification. It is a sellable, widely used product grade in today’s market. Importantly, HPQ’s material demonstrated viscosity performance above standard benchmarks for the 150 grade, a key factor in real-world applications where fumed silica is purchased specifically for its thickening and rheological properties.

With validation in hand, HPQ reports that commercialization discussions have continued in parallel, including dialogue around the steps required to move toward an initial commercial-scale facility. While execution of the first plant remains the primary remaining risk, management emphasized that the most difficult technical transition—moving from lab to pilot scale—has already been completed.

STRATEGIC STRUCTURE AND PARTNERSHIP FOUNDATION

The fumed silica initiative is supported by a joint operating structure with PyroGenesis Inc., combining HPQ’s commercial strategy with PyroGenesis’ engineering and process expertise. This structure is designed to reduce execution risk as the project advances toward continuous operation and commercial-scale deployment.

In addition, the LOI framework under discussion contemplates a model where HPQ focuses on production while its partner leverages established downstream capabilities such as packaging and market access—an approach intended to reduce capital intensity and support a more efficient path to market.

MARKET SCALE AND REPLICATION POTENTIAL

Management highlighted that the Canadian fumed silica market alone is estimated at 10,000–15,000 tonnes per year, with material 150 representing a meaningful portion of that demand. Once an initial commercial system is operational, the pathway to growth becomes largely replicative—scaling by adding additional systems rather than reinventing the process.

Beyond grade 150, HPQ believes its technology can be optimized to produce higher-value grades over time, but the current milestone confirms that commercial entry does not depend on future enhancements.

THE OUTLOOK: A PROCESS MOVING FROM VALIDATION TO EXECUTION

With independent customer validation, a defined commercialization pathway, and early planning for a dedicated production site, HPQ has moved its fumed silica initiative into a new phase. The remaining challenge is execution—building and operating the first commercial system—but the company now approaches that step with verified performance data, active industrial engagement, and a clearer line of sight to market demand.

For investors seeking small-cap opportunities where technical risk has been substantially reduced and commercialization discussions are grounded in disclosed customer validation, this interview captures a moment where HPQ’s fumed silica strategy begins to transition from promise to potential production.

What You Need To Know

• Commercial-grade fumed silica achieved at pilot scale, triggering inbound interest
• New technology demand could push fumed silica beyond existing global capacity
• UL 1642 cell-level certification opens U.S. battery commercialization pathways
• Hydrogen is advancing toward defined remote and industrial energy use cases

Here’s how HPQ Silicon is moving from technical validation toward commercial execution across three advancing platforms.

FROM LAB RESULTS TO MARKET PULL

In this wide ranging discussion, Bernard Tourillon joins usto unpack what management describes as a turning point year. After years of development across three advanced material platforms, the conversation makes clear that HPQ is no longer operating in a purely R&D driven phase.

The shift began when HPQ successfully replicated commercial grade fumed silica at pilot scale. That milestone did more than validate the process. It triggered unsolicited outreach from multiple external groups tied to advanced technology infrastructure.

FUMED SILICA MOVES INTO STRATEGIC TERRITORY

Management outlined why fumed silica is increasingly being viewed as a strategic material rather than a niche industrial input. Emerging technology infrastructure requires materials that can withstand higher performance thresholds, and existing supply chains may not be positioned to respond quickly.

Today, roughly half of global fumed silica supply is produced in China. At the same time, traditional producers face long construction timelines, complex permitting, and high energy intensity when adding new capacity.

HPQ’s process takes a different approach by converting quartz directly into fumed silica in a single step. This enables faster permitting, simpler plant construction, and modular expansion once the first commercial facility is built.

The company believes this structural advantage could become increasingly relevant if demand accelerates faster than incumbents can scale.

BATTERY MATERIALS CROSS A COMMERCIAL GATE

On the battery side, HPQ achieved UL 1642 cell level certification, which management repeatedly described as a critical inflection point. Without this certification, customers face barriers related to insurance, transportation, and regulatory compliance.

With certification now in place, discussions can move from technical interest to practical execution.

According to Tourillon, this allows conversations to advance into customer qualification, volume planning, and partnership structures, particularly in the U.S. market. The company is now developing multiple battery iterations tailored to different performance profiles, including applications such as drones and mobility platforms.

Government involvement was also highlighted as a form of validation rather than dependence. Funding is structured to support ongoing scale up as milestones are met, rather than requiring full capital commitment in advance.

HYDROGEN SHIFTS FROM CONCEPT TO USE CASE

While hydrogen remains earlier in its commercialization timeline, management emphasized that its role is becoming more concrete. The technology is designed for decentralized energy environments where diesel remains the default option due to logistics and reliability constraints.

Examples discussed include northern housing developments, mining camps, and remote industrial sites. HPQ’s approach uses recycled aluminum as a stable energy carrier that can be stored indefinitely and activated on demand to produce energy and heat.

Tourillon noted that economics and demand visibility are improving, with expectations that early 2026 will begin to demonstrate clearer commercial validation for this platform.

THE SUM OF THE PARTS QUESTION

One of the most consequential moments in the interview came during a candid discussion about corporate structure. With all three platforms advancing simultaneously, management acknowledged that the current structure may not fully reflect underlying value.

“The reality is that the sum of our parts is bigger than the company.”

Tourillon confirmed that 2026 is likely the year when formal separation processes begin, with fumed silica identified as the most probable first candidate for independence. The company is already structurally prepared for this outcome through existing subsidiaries.

THE INVESTOR TAKEAWAY

This conversation was not about distant promise. It was about technologies that have reached validation, are attracting real world interest, and are now moving into monetization focused execution.

For investors, the key shift is not just progress within each vertical, but management’s willingness to address structure, prioritization, and value realization head on. HPQ is entering a phase where market results, not just technical milestones, are expected to define the next chapter.

When a company proves it can do what’s never been done before – producing commercial-grade fumed silica directly from quartz in a single step – it marks a seismic shift in a century-old industry. HPQ Silicon (TSX-V: HPQ / OTCQB: HPQFF) has just crossed that line, confirming independent pilot-scale validation of its breakthrough plasma process.

WHAT YOU NEED TO KNOW

• Binary ON: HPQ replicated McGill-verified lab results at pilot scale — confirming commercial-grade purity and surface area.
• Industry Validation: An LOI remains active with the largest fumed silica manufacturer in the world to evaluate pilot samples.
• Commercial Stage Begins: Independent results open the door to direct engagement with multiple industrial buyers under NDA.
• Canadian Advantage: Positioned to capture up to 50% of Canada’s $200M market, which currently imports 100% of its supply.
• High-Margin Economics: Targeting ~70% gross profit margins on a market-priced product ($5K–$6K/ton).

STRATEGIC IMPLICATIONS

For decades, the global fumed silica industry — valued in the billions — has relied on a fossil-fuel-intensive process that’s toxic and expensive. HPQ’s one-step, plasma-based system eliminates hydrogen chloride, slashes CO₂ by 84%, and reduces energy use by 87%.

With federal and Québec government support funding two-thirds of its pilot costs, HPQ is now transitioning from R&D to commercialization — a rare pivot point where innovation meets execution.

CEO BERNARD TOURILLON:

“This is a massive milestone. We’ve replicated our lab results at pilot scale — a world first. That means we can now move from saying ‘we will’ to ‘we have,’ and start direct commercial discussions.”

INVESTOR TAKEAWAY

HPQ Silicon has achieved what legacy players could not: proven scalability, independent validation, and a clean, cost-efficient pathway to domestic production. With major industry interest, government alignment, and multiple verticals advancing in parallel, HPQ isn’t just innovating — it’s redefining how fumed silica will be made and monetized in the clean-tech era.

Independent validation, government alignment, and first-mover advantage converge as HPQ moves toward commercialization.

TURNING A CENTURY-OLD PROCESS ON ITS HEAD

HPQ Silicon  $HPQ / $HPQFF is developing a one-step, plasma-based process that can convert quartz directly into fumed silica — eliminating multiple costly and carbon-intensive steps used by today’s global producers.

Following the successful completion of Test #7, HPQ has shipped its pilot plant samples to an independent, accredited third-party laboratory for official certification — a key step in confirming commercial-grade performance.

“Once we achieve certified results confirming surface areas above 150 m²/g, we’ll have validated commercial-grade fumed silica made in a single, scalable step,” said HPQ CEO Bernard Tourillon. “That’s when commercialization truly begins.”

WHY THIS MATTERS

Fumed silica is a multi-billion-dollar global market, yet Canada currently produces none and imports all of its $200,000,000 market. Used in batteries, cosmetics, electronics, and food, it’s a critical material across multiple industries.

HPQ’s pilot success and independent validation position it as Canada’s only potential domestic producer, aligned with national manufacturing priorities.

• Government Tailwinds: Canada’s renewed manufacturing push — reinforced by recent comments from Mark Carney and federal ministers — emphasizes local production of critical materials.

• Institutional Support: Québec’s investment arm, Investissement Québec, holds an 8% equity stake in HPQ.

• Green Advantage: HPQ’s direct-quartz process eliminates hydrogen chloride gas and significantly lowers carbon emissions — making it both cleaner and potentially cheaper than legacy methods.

COMMERCIAL PATHWAY: FROM PILOT TO PRODUCTION

With accredited test data expected shortly, HPQ plans to use the results to support financing and partnerships for multiple 1,000-ton-per-year plants, estimated at $15–20 million each and well below costs of legacy manufacturers.

Each unit could serve 1/15th of the Canadian market worth roughly $200 million annually, while paving the way for international joint ventures.

Tourillon emphasized that Canada will serve as the blueprint:

“We can demonstrate it here first — then replicate the model globally, from the U.S. to Europe and Asia. Canada gives us the foundation and leverage for world-scale negotiations.”

INVESTOR TAKEAWAY

HPQ Silicon’s one-step, low-emission process is progressing from proof-of-concept to proof-of-commerce. With third-party validation underway, alignment with government policy, and a clear domestic production plan, HPQ is approaching the stage where innovation meets execution.

If successful, HPQ could become the first new entrant in decades to reshape the fumed silica industry — and a potential benchmark for clean-tech manufacturing in Canada.