HPQ Signs Non-disclosure Agreement with another Leading Fumed Silica Manufacturer, Delivers More Commercial-grade Samples for Third-party Review

by Team HPQ

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in green engineering processes for silica and silicon material production, is pleased to announce additional milestones on the ongoing third-party commercial validation of HPQ-produced Fumed Silica material.

HPQ’s wholly owned subsidiary, HPQ Silica Polvere Inc. (HPQ Polvere), and technology provider PyroGenesis Canada Inc. PyroGenesis Canada Inc. (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY) (Pyrogenesis) have successfully signed a second Non-Disclosure Agreement (NDA) with a second Leading Fumed Silica Manufacturer (LFSM) [1].

ADDITIONAL THIRD-PARTY TESTING OF HPQ POLVERE FSR PRODUCED FUMED SILICA UNDERWAY

A second batch samples of fumed silica material produced using a lab-scaled model of HPQ Polvere’s proprietary Fumed Silica Reactor (‘FSR’) technology was shipped, received, and will be undergoing material quality evaluation by a third party under a non-disclosure agreement (NDA).

Mr. Bernard Tourillon, President and CEO of HPQ Silica Polvere Inc and HPQ Silicon Inc., noted, “Strong third-party interest in our fumed silica material, expressed by various leading manufacturers early in our development, underscores the potential of our technology, our progress, and the value of our efforts. While success is not guaranteed, these non-disclosure agreements (NDAs) and sample requests hold the potential to form partnerships in our venture, which could manifest in different ways, such as commercial-scale offtake agreements or generating interest in adopting our technology.”

PRODUCING AT LAB-SCALE COMMERCIAL GRADE FUMED SILICA

By using a lab-scaled model of HPQ Polvere’s proprietary Fumed Silica Reactor (‘FSR’) technology, PyroGenesis was successful in producing fumed silica. Preliminary tests and examination confirm that the produced material has the structural characteristics similar to commercially available fumed silica, and it is this material that is being tested by third parties under NDA.

This milestone signifies that HPQ Polvere has the only technology capable of using raw quartz (SiO2) as feedstock to produce commercial grade fumed silica—in one step.

HPQ POLVERE FUMED SILICA INITIATIVE – FROM LAB-SCALE TO COMMERCIAL SCALE

Fumed silica, also known as Pyrogenic Silica, is a fine white powder characterized by its high surface area and low bulk density.

This is precisely where HPQ Polvere’s strategy comes into play. By establishing a scalable production capability for fumed silica, ranging from 250 tonnes per year (TPY) to 2,500 TPY, we are well-aligned with both current and future market dynamics.

We are committed to a diligent expansion of our Fumed Silica production capacity. Currently, at 50 kg per year at lab scale, we aim to achieve 50 TPY within 12 months and subsequently exceed 250 TPY per reactor within the next 36 months.

FUMED SILICA: BACKGROUND AND GLOBAL MARKET

Fumed Silica is a crucial material used in various industries due to its unique properties. Its commercial applications encompass various industries including personal care, pharmaceuticals, agriculture (food & feed), adhesives, sealants, construction, batteries gel, automotive and more.

Worldwide demand for fumed silica in 2017 was 317,000 tonnes (t) worth US$ 1.6 Billion (B). The market was estimated to grow at 6% CAGR and reach an estimated volume of 424,300 t, worth about
US $ 2.2 B in 2022 [2].

HPQ Polvere holds a distinctive competitive edge through its Fumed Silica Reactor. This advantage stems from our ability to directly transform quartz into fumed silica, resulting in energy requirements as low as 15,000 kWh per tonne produced [3]. This process not only enhances efficiency but also minimizes environmental impact and associated carbon taxes [4].

In contrast, conventional manufacturing processes for fumed silica depend on 2N purity Silicon Metal (Si) as feedstock. These processes entail substantial CO2 emissions, intricate procedures, and high energy consumption (approximately 115,000 kWh per tonne produced). Moreover, they give rise to hazardous by-products like Hydrogen Chloride Gas (HCl) [5].

“The signature of the second NDA is a confirmation that as our process gains more industry visibility, HPQ Silica Polvere anticipates continued interest in fumed silica production technology, benefiting both the Company and the industries that rely on this essential material,” added Mr. Tourillon.

REFERENCE SOURCES
[1] To maintain confidentiality for industry competitive reasons, the identity of the LFSM will remain undisclosed. PyroGenesis participation in the NDA agreements is done at HPQ’s express request.
[2] Worldwide Sales data from MarketsandMarkets 2017 “fumed silica market – global forecast to 2022” page 70.
[3] PyroGenesis Canada Inc.
[4] HPQ Silicon Inc July 13, 2023, release
[5] Barthel, H., Rösch, L., & Weis, J. (2005). Fumed silica‐production, properties, and applications. Organosilicon Chemistry Set: From Molecules to Materials, 761-778.

HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer. With the support of world-class technology partners PyroGenesis Canada and NOVACIUM SAS, the company is developing new green processes crucial to make the critical materials needed to reach net zero emissions.







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