HPQ Silicon Enters Commercialization Phase With World Leader

AGORACOM Small Cap CEO Interviews

Key Achievements and Future Outlook

• Pilot Plant Reactor Launched: The successful start-up of HPQ’s pilot plant reactor is a crucial step toward scaling production of fumed silica.

• Ongoing Collaborations with Evonik: HPQ is in advanced discussions with Evonik, with the potential for an offtake agreement by June.

• Significant Market Opportunity: With a brand new, scalable production process and strong demand for fumed silica, HPQ is well-positioned to capture a significant share of the global market with partners like Evonik and other major players.

HPQ Silicon is making waves in the advanced materials sector with its innovative approach to fumed silica production. Used in a wide range of industries—from cosmetics and toothpaste to powdered foods—fumed silica is a critical material that has traditionally been produced using expensive, toxic and energy-intensive processes. However, HPQ's breakthrough technology promises to disrupt the market by simplifying and scaling up production cheaper, cleaner and less energy use, a game-changing development that could drive substantial growth for the company.

In today’s interview, CEO Bernard Tourillon emphasized the company's progress, particularly the successful launch of its pilot plant reactor. This key milestone marks the transition from concept to operational reality for HPQ's new fumed silica production process. "This is like launching Jeff Bezos' rocket—it's a big deal," Bernard remarked, reflecting on the significance of the achievement.

HPQ's new method promises to streamline production by eliminating several steps, improving scalability, and reducing shipping costs. The company's ability to install equipment closer to end buyers could also reduce logistics costs and increase profitability. With the transition to commercial-scale production agreements on the horizon, the company is preparing for the next phase of its growth journey.

STRATEGIC PARTNERSHIPS AND MARKET OPPORTUNITY

HPQ's fumed silica technology is gaining attention from key players in the industry, including Evonik, a global leader in specialty chemicals. The company anticipates discussions to finalize an offtake agreement, which could significantly expand its global market presence. Bernard mentioned the potential for licensing and royalty deals as additional revenue streams, further amplifying the commercial potential of their technology.

The fumed silica market itself is poised for significant expansion. Bernard estimates that Canada alone would require 16 production plants, each capable of producing one million kilograms per year. With each plant generating approximately $7 million in EBITDA annually, the revenue potential is substantial. As HPQ moves closer to securing commercial agreements, the company's growth prospects are becoming increasingly clear.

"We’re not just changing the way fumed silica is made, we’re setting the stage for a major shift in the industry," Bernard said, highlighting the transformative potential of the company's technology.

As HPQ Silicon moves closer to commercialization, investors have a compelling reason to keep a close eye on this small-cap company. With its innovative approach, strategic partnerships, and massive market opportunity, HPQ Silicon is on track to redefine the future of fumed silica production and potentially deliver significant returns to investors.

A MAJOR STEP TOWARD COMMERCIALIZATION