MONTREAL, Quebec — February 12, 2026 — Leads & Copy — PyroGenesis Inc. has announced that its client HPQ Silicon Inc., through its subsidiary HPQ Silica Polvere Inc., has signed a non-binding memorandum of understanding with an industrial Joint Venture partner to form a joint venture company. The JV will operate a 1,000 tonne per year fumed silica production plant.
PyroGenesis, under an exclusive manufacturing arrangement, would build the fumed silica reactor for US$20.0 million. The financing for the system is secured and will be provided by the JV Partner.
PyroGenesis is in the final stages of exercising its option to acquire a 50% interest in HSPI. PyroGenesis has been actively involved in all aspects of the negotiations of this MOU.
The memorandum of understanding outlines several key elements:
The FSR will have a 1,000 TPY capacity and will cost USD $20MM.
The FSR will be bought by the JV and financed by the JV Partner.
The JV will own and operate the system, selling fumed silica at market prices.
HSPI will charge a royalty for each kilogram of fumed silica sold by the JV.
Profit-sharing distribution to the JV partners.
There is an implied off-take agreement between the JV Partner and the JV.
Next steps depend on confirmation of chemical and compositional characteristics of the fumed silica powder produced by the existing FSR pilot plant. Fumed silica samples from the FSR have been produced and delivered to the client and to a specialty testing laboratory in the U.S. Tests are currently underway to confirm suitability.
The formation of the JV is contingent upon the negotiation and execution of definitive agreements. These documents are expected to be completed and signed no later than the end of Q2 2026.
The proposed fumed silica plant would be a commercial scale version of the current FSR pilot plant, which PyroGenesis designed, engineered, and constructed to convert quartz into fumed silica in a single and eco-friendly step, without chemicals and producing no hazardous by-products. The plant is expected to be delivered within 12 months of the formation of the JV. There is an expectation of a need for a series of additional fumed silica plants of the same or larger size.
Mr. P. Peter Pascali, President and CEO of PyroGenesis, stated that on-site production using their FSR plant would represent a significant development for manufacturers that rely on fumed silica. He added that localized production restructures the supply chain, streamlines logistics, and secures reliable access to critical material. He noted that this MOU is an important first step, but the joint venture and production plant project will only proceed upon successful completion of negotiations and the signing of definitive agreements by all parties. Negotiations are ongoing and should be completed before the end of Q2 2026.
Fumed silica is used in thousands of consumer and industrial products, including cosmetics, toothpaste, pet litter, powdered food, milkshakes, instant coffee, pharmaceuticals, agriculture, adhesives, paints, inks, photocopy toner, sealants, fiber optic cables, thermal insulation, construction materials, and batteries. It is often used as a thickening/anti-caking agent to stabilize and improve the texture, consistency, and flow of the end-product.
In tires, fumed silica is blended with carbon-black to improve wear and efficiency; in batteries, it can be blended with graphite to enhance slurry uniformity and conductivity.
PyroGenesis originally developed and built the FSR pilot plant for HPQ Polvere Inc., a subsidiary of HPQ Silicon Inc.
PyroGenesis has the rights to convert its annual royalty rights on future production of fumed silica into a 50% interest in HSPI and has an exclusive arrangement to be the sole supplier of equipment relating to any commercialization of the FSR.
PyroGenesis is the exclusive supplier of HSPI plasma-based technology that uses quartz (SiO2) as a raw material to produce commercial-grade fumed silica in a single and eco-friendly process. The FSR requires no additional processes to develop to prepare feedstock, and no intermediary toxic chemical-based processing. The FSR can produce fumed silica from quartz at one physical location.
Expected benefits of the fumed silica reactor process:
(1) Lower capital costs
(2) Lower operating costs
(3) Reduction of CO2 emissions
(4) Reduction in energy footprint
(5) Elimination of purchase and storage requirements for hazardous chemicals
(6) Simplified logistics/shortened production chain
(7) Safer production environment due to absence of dangerous, toxic, or explosive chemicals
PyroGenesis leverages 35 years of plasma technology leadership to deliver advanced engineering solutions to energy, propulsion, destruction, process heating, emissions, and materials development challenges across heavy industry and defense. Its customers include global leaders in aluminum, aerospace, steel, iron ore, utilities, environmental services, military, and government.
HPQ Silicon Inc. is a Quebec-based TSX Venture Exchange industrial issuer focused on innovation in advanced materials and critical process development. In partnership with its research and development partner Novacium, the Company is advancing next-generation silicon-based anode materials (Gen3) for batteries, commercializing its ENDURA+ lithium-ion cells, and developing breakthrough clean-hydrogen and waste-to-energy technologies, for which HPQ holds exclusive North American rights. HPQ is also pursuing proprietary technologies to become a low-cost, zero-CO₂ producer of fumed silica and high-purity silicon, with technical support from PyroGenesis Inc. Together, these initiatives position HPQ to capture growth opportunities in the energy storage, clean hydrogen, and advanced materials markets essential to achieving global net-zero goals.
Source: PyroGenesis Inc.
