- PyroGenesis calculates the maximum scaled up size of a single PUREVAP™QRR would allow the production of 2,500 metric tonnes of Silicon Metal per year.Â
- Total capacity of any PUREVAP™ QRR plant is therefore scalable by increments of 2,500 MT per year, making the PUREVAP™QRR process the most versatile and adaptable process to produce Silicon Metal
MONTREAL, July 11, 2019 — HPQ Silicon Resources Inc. – (www.HPQSilicon.com) (TSX-V: HPQ), (OTCPink: URAGF), (FWB: UGE) is pleased to present the salient points of an updated budgetary estimate regarding the significant cost advantages of building a commercial scale PUREVAP™ Quartz Reduction Reactor (QRR), versus conventional processes to produce Silicon Metal (Si). The budgetary estimates were prepared by PyroGenesis Canada Inc (“PyroGenesisâ€) (TSX-V: PYR), using the data generated during our Gen1, Gen2 testing and Gen3 design & build phases.
PUREVAP™ THE SCALABLE, VERSATILE, & ADAPTABLE PROCESS THAT WILL CHANGE Si PRODUCTION
PyroGenesis calculates the maximum scaled up size of a single
PUREVAP™QRR would allow the production of 2,500 metric tonnes (“MTâ€) of
Silicon Metal per year. The total capacity of any PUREVAP™ QRR plant is therefore scalable by increments of 2,500 MT per year, making the PUREVAP™QRR
process the most versatile and adaptable process to produce Silicon
Metal (Si). This conclusion stems from the data of the two most recently
built plants (“Greenfieldâ€) to produce Metallurgical Grade Si (Mg Si),
where conventional smelter processes require a minimum scale capacity of
~ 30,000 MT of Mg Si per year to be viable.
HPQ PUREVAP™ QRR TO REDUCE CAPEX COST PER KG OF ANNUAL CAPACITY BY UP TO 51%
Comparing the capacity and cost per Kg of annual capacity for a PUREVAP™ QRR
plant versus the same data from the two most recent Greenfield plants,
which were built using conventional processes to produce Mg Si, the
scale of the PUREVAP™ QRR competitive cost advantages become very apparent.
- HPQ commercial scale up plans call for the commissioning of a first 2,500 metric tonnes per annum (“MTAâ€) PUREVAP™ QRR and, once demand requires, a second 2,500 MTA PUREVAP™ QRR, would be added to the plant. Pyrogenesis budgetary estimates for the first 2,500 MTA PUREVAP™ QRR
indicate a cost per Kg of annual capacity of approximately US$ 8.89.
Thereafter, simply increasing annual capacity to 5,000 MTA, with the
addition of a second 2,500 MTA PUREVAP™ QRR, significantly reduces the cost per Kg of annual capacity down to only US$ 6.22.
- PCC BakkiSilicon hf is a new entrant that signed a turnkey contract
for its Greenfield plant commissioned in 2018 in HúsavÃk (Iceland). The
plant set up is the standard two furnaces layout and cost over US$ 300
Million to build. With an annual capacity of 32,000 MTA of Mg Si, this
project has a cost per Kg of annual capacity of US$ 9.38. (51% higher
than PUREVAP™)1
- Mississippi Silicon, a subsidiary of a large Brazilian tier 1 producer (Rima Industrial S/A),
which has in house expertise in building new Greenfield plants, built a
new plant that was commissioned in 2015 in Burnsville, Mississippi
(USA). The plant uses the standard two furnaces layout and cost over
US$ 220 Million to build. With an annual capacity of 36,000 MT of Mg Si,
this project has a cost per Kg of annual capacity of US$ 6.11.2 A PUREVAP™ QRR
can match the cost per Kg of capacity of a tier 1 producer Greenfield
plant at a fraction of the investment required (85% less).
“According to an engineering and consultant firm specialized in
building Greenfield Silicon Metal plants, the three critical elements
for success are: 1) Access to cheap power; 2) Carbon Sourcing
Management; and 3) Control over Capex of new plants. Being a Quebec
based Company; access to cheap, clean and reliable power is not an
issue. Regarding Carbon Sourcing Management and Capex Control, our
results to date demonstrate that we are definitely moving in the right
direction. With the Gen3 phase start just around the corner, we are
getting closer to the time when market participants will have no choice
but to take notice that we are the only viable low Capex and Opex
alternative to producing Silicon Metal, the energy metal of the future†stated Bernard Tourillon, President & CEO of HPQ Silicon Resources Inc.
PUREVAP™ QRR SCALE, LOW OPEX AND CAPEX INDICATE STRONG ECONOMIC VIABILITY
In the June 17, 2019 releases the Company indicated that PUREVAP™ QRR efficiency
could generate a 20% reduction in the cost of making 99+ %
metallurgical grade silicon metal (“2N Mg Siâ€) Si versus conventional
processes. Today, the budgetary estimates provided by PyroGenesis
indicates that the minimum capital investment needed by HPQ to become a
Silicon Metal producer is 90% smaller than what Mississippi Silicon
invested and 93% less than what PCC BakkiSilicon hf invested. The
combination of HPQ PUREVAP™ QRR Opex, Capex and Scalability advantages is what makes the process so competitive in the Silicon Metal space.
The Gen3 pilot plant testing, that is set to commence soon, aims to
validate these hypotheses of future commercial production economic
viability.
PUREVAP™ QRR IMPURITY REMOVAL CAPABILITY ALLOW HPQ TO TARGET HIGH VALUE MARKETS
Gen2 testing demonstrated that the PUREVAP™ QRR process
could reach greater than 99% selective impurity removal efficiency,
meaning that, working only with operational parameters, unwanted
impurities can be volatized from the final silicon phase, in the
reactor.
Upcoming Gen3 pilot plant testing will validate the PUREVAP™ QRR
one step selective impurity removal efficiency and demonstrate that
operational parameters control will allow HPQ to adapt the final purity
of the Silicon Metal (Si) tapped out from its commercial reactors and
produce Si chunks of either:
- The 99.99+% Si purity required for niche market applications or
feedstock for our metallurgical route to produce Solar Grade Silicon
(SoG-Si UMG);
- The 99.5% Si purity required by end buyers in the Silicones, Polysilicon for Photovoltaic or Batteries sectors, and
- The 98.5% Si purity required by end buyers in the aluminium sector
PUREVAP™ QRR ELIMINATES NEED FOR POST METAL REFINING
Until now, only the standard two-step commercial process to produce
metallurgical grade silicon metal (“Mg Siâ€) existed. Under this pathway,
raw materials (SiO2 and Reductant) are fed into giant submerged arc
furnaces, where the carbothermic reaction occurs, then the molten
silicon is tapped into a ladle were the oxidation and slag refining step
is done. Without the final slag-refining step, conventional smelters
are not able to produce Mg Si (98.5 -99.5% Si).
The PUREVAP™ QRR process ONE STEP selective
impurity removal efficiency eliminates the need for the tapped liquid
metal exiting the reactor to go through an oxidation and slag-refining
step, which is another reason why PUREVAP™ Capex and Opex are going to be significantly lower than conventional processes of making Silicon Metal.
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 the lowest cost producer of Silicon Metal and 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 leader
PyroGenesis (TSX-V: PYR) 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 Metallurgical Grade Silicon Metal (Mg Si) at prices that will
propagate it clean energy potential.
HPQ’s goal, working with industry leader Apollon Solar, is also to
develop a metallurgical approach to producing Solar Grade Silicon Metal
(SoG Si) that will take full advantage of the PUREVAPTM QRR production
of 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
in 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
