MONTREAL, July 23, 2024 – HPQ Silicon Inc. (TSX-V: HPQ, OTCQB: HPQFF), a pioneer in the green engineering of silica and silicon-based materials, has achieved a significant milestone with its subsidiary HPQ Silica Polvere Inc. (HSPI). The company announced the commencement of the commissioning phase for its Fumed Silica Reactor (FSR), a cutting-edge technology developed in partnership with PyroGenesis Canada Inc. (TSX: PYR, OTCQX: PYRGF).

Background and Context

HPQ Silicon has been at the forefront of developing green processes to produce critical materials essential for achieving net-zero emissions. With a focus on silica and silicon-based products, the company has partnered with renowned technology firms like PyroGenesis Canada and NOVACIUM SAS to innovate and commercialize sustainable solutions.

Key Highlights and Advantages

The Fumed Silica Reactor represents a leap forward in the production of fumed silica, a material with applications in industries ranging from cosmetics to electronics. Key features include:

• Commercial-Grade Production: The FSR can produce commercial-grade fumed silica at scale, demonstrating its potential for widespread application.
• Low-Cost, Low-Carbon Process: The reactor's process is designed to be both cost-effective and environmentally friendly, aligning with global sustainability goals.
• Operational Milestones: The pilot plant aims to produce fumed silica with specific surface areas of 150-200 m²/g initially, scaling up to 300 m²/g for food and pharmaceutical grades by the end of Q4 2024.

Potential Impact and Significance

The successful commissioning of the FSR pilot plant marks a pivotal moment for HPQ Silicon. This technology not only positions the company as a key player in the fumed silica market but also supports broader industry shifts towards sustainable manufacturing. The projected production capacity of 50,000 kg/year underscores its commercial viability and potential to capture significant market share.

Expert Opinions and Analysis

Bernard Tourillon, President & CEO of HPQ Silicon, expressed confidence in the FSR's capabilities, stating, "We are on the verge of demonstrating at pilot scale, the incredible potential of our FSR technology. This process will change fumed silica manufacturing forever."

Peter Pascali, President and CEO of PyroGenesis, highlighted the strategic partnership, noting, "PyroGenesis only commits to ideas with significant commercialization potential. Our 50% ownership stake in this initiative reflects our confidence in its success."

Challenges and Considerations

While the advancements are promising, the transition from pilot to full-scale production will require meticulous execution. HPQ's strategy includes rigorous internal testing and collaboration with industry leaders like Evonik Corporation to ensure product quality and market readiness.

Conclusion

HPQ Silicon's advancements in fumed silica production signify a major step forward in sustainable manufacturing. With its innovative approach and strategic partnerships, the company is well-positioned to lead the industry and deliver substantial value to investors. As HPQ navigates through critical milestones, the business community will be closely watching its progress and potential market impact.

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