HPQ Silicon Resources Inc. – (
www.HPQSilicon.com) (TSX-V: HPQ),
(OTCPink: URAGF), (FWB: UGE) is pleased to
announce the receipt of a report from PyroGenesis Canada Inc
(“PyroGenesis”) (TSX-V: PYR) comparing the performance of the
PUREVAP™ Quartz Reduction Reactor (QRR) process using a low cost
highly reactive carbon source, versus conventional processes used
by all the Metallurgical Grade Silicon Metal (Mg Si) producers such
as Ferroglobe, Dow-DuPont, Elkem, Rima and Rusal, which use high
cost, higher purity carbon sources.
PUREVAP™ CAN MAKE 99+% SILICON
USING ONE REDUCTANT: LOWER COST HIGHLY REACTIVE
CARBON
Having a process that uses less feedstock to
make 1 MT of Mg Si and allows the substitution of costly high
purity Reductant with readily available lower cost material will
reduce the cost of making Mg Si, giving that process a competitive
advantage, which is what the PUREVAP™ QRR can offer.
As part of the ongoing R&D, PyroGenesis
decided to push the envelope of the process by using only one
Reductant, a highly reactive carbon source (92.1% Total Carbon) and
HPQ off spec SiO2 (98.839% VS 99.83%), Fe2O3 (0.121% VS 0.05%) and
Al2O3 (0.182% VS 0.04%) in the Gen2 PUREVAP™ reactor1.
In this test, Gen2 PUREVAP™ produced
commercially viable 99.73% Si with 0.166% Fe and 0.0424% Al,
representing chemical grade Mg Si2, a product with great
commercial value. By comparison, PyroGenesis calculated that
similar material input in a conventional smelter would produce
96.95% Si, a product with little commercial value.1
“These results are a testament to our methodical
approach, the Gen2 PUREVAPTM QRR platform has allowed us to check
off this tremendous major milestone. These spectacular results are
not only further de-risking the project, they are also opening up
additional segments beyond solar energy applications where HPQ
PUREVAPTM QRR could have direct application,” stated Bernard
Tourillon, President and CEO of HPQ Silicon Resources Inc.
“Market research indicates that demand for chemical grade Mg
Si will drive demand for Mg Si from 2.8 Million MT worth
US$ 7.5 B in 2018 to 3.8 Million MT worth US$ 12B by
20233. HPQ is very well positioned to benefit from this
increase in demand.”
A PUREVAP™ QRR
PROPRIETARY ADVANTAGE: REDUCING RAW MATERIAL COSTS TO
MAKE Si
Depending on the producer, making Mg Si (98.0%
to 99.5% Si) in 2018 cost between US$ 1,450/MT and
US$ 2,000/MT4. More than 40% of that cost5
(US$ 580/MT to US$ 800/MT) is directly attributable to
the 6+ metric tonnes of raw material (SiO2 and Reductant) needed to
produce 1 MT of Mg Si6.
The carbon reductant used in traditional
processes to make Mg Si accounts for 30% of the total
cost3. That cost is divided between two
different sources, woodchip counting for 10% (US$ 145/MT to
US$ 200/MT) and Carbon (low ash coal & charcoal) counting
for 20% (US$ 290/MT to US$ 400/MT).
For conventional process producers, high purity
coal procurement and cost have been identified as critical elements
for their operations because: a) there are only 2 coal mines in the
world that can supply it (the 100% Ferroglobe-owned Blue Gem Coal
and Colombian coal)7; and B) a US$ 10/MT increase in its cost
has a US$ 13 per MT produced impact on the producer’s bottom
line7.
GEN2 TEST WORK INDICATES POTENTIAL
SAVINGS, GEN3 PILOT PLANT WILL VALIDATE SCALE AND SCOPE OF
SAVING
While being able to use lower cost raw material
represents significant potential cost savings, the other biggest
factor that differentiates the PUREVAP™ QRR is that it should be
capable of using highly reactive carbon as Reductant, and therefore
only need to process 4.5 MT of raw material8 (lower purity SiO2 and
cheaper Reductant) to produce 1 MT of Mg Si.
As more than 40% of the cost of conventional
processes is directly attributable to the 6+ metric tonnes of raw
material (SiO2 and Reductant) needed to produce 1 MT of Mg
Si3, it is possible to estimate that a PUREVAP™
QRR could cut in half raw material cost, representing a 20%
reduction in the cost of making chemical grade Mg Si.
Gen3 pilot plant testing will allow us to refine
and validate these numbers at commercial scale.
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 that 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
PUREVAP™ “Quartz Reduction Reactors (QRR),” 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 PUREVAP™ 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
contactBernard J. Tourillon, Chairman, President and CEO
Tel (514) 907-1011 Patrick Levasseur, Vice-President and COO Tel:
(514) 262-9239 www.HPQSilicon.com
1 PyroGenesis TM-2019-024 (May 27 2019)2 Balazs™ NanoAnalysis –
ICP OES (Inductively coupled plasma - optical emission
spectrometry) analysis results3 CRU – Silicon Market Outlook –
November 14 2018 (Page 20 - 23)4 CRU – Silicon Market Outlook –
November 14 2018 (Page 17)5
Ferroglobe_Investor_Day_Presentation__17_Oct_2017 (Page 40)6
GSM_Investor_Presentation_-_March_2014 (Page 3)7
Ferroglobe_Investor_Day_Presentation__17_Oct_2017 (Page 46 -41)8
PyroGenesis efficiency estimation for the PUREVAP™ process
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