PyroGenesis Navigates Restructuring as Varennes Carbon Recycling Project Pursues Court-Supervised Reorganization

PyroGenesis Inc. (TSX: PYR, OTCQX: PYRGF, FRA: 8PY1), a Montreal-based technology company specializing in plasma-based solutions for heavy industry decarbonization, has issued an operational update on its involvement with the Varennes Carbon Recycling (VCR) initiative in Quebec. The update comes following recent developments with Varennes Cellulosic Ethanol LP (VCE), which manages the project.

Court Protection Enables Project Continuity

On March 11, 2025, VCE filed for protection under the Companies’ Creditors Arrangement Act (CCAA), a Canadian restructuring framework that permits companies to continue operations while addressing financial constraints under court supervision. The filing explicitly designates PyroGenesis as a critical supplier, with formal recognition in court documents acknowledging the company’s essential role in the project’s success.

According to communications from VCE, PyroGenesis has been requested to maintain its contracted work, with assurances of timely payment for deliverables and services. The company remains engaged with the restructuring process and views the CCAA proceedings as a pathway toward financial resolution and project completion.

Tracking Contract Milestones and Project Scope

PyroGenesis, through its subsidiary Pyro Green-Gas, has secured engineering and manufacturing contracts tied to the VCR initiative. The original agreement, valued at $2.5 million, covered the design, engineering, and fabrication of a Thermal Swing Adsorption (TSA) system intended for gas recovery operations at the facility. This contract was followed by an additional $1.1 million agreement finalized in February 2025, expanding the company’s scope within the project.

The VCR project aims to establish Quebec as a hub for sustainable biofuel production, positioning the region as a leader in the energy transition sector. The TSA technology deployed by Pyro Green-Gas represents a key component in optimizing gas recovery and reducing operational emissions at the plant.

Broader Outlook and Technology Positioning

PyroGenesis operates across three strategic verticals: Commodity Security & Optimization, Energy Transition and Emission Reduction, and Waste Remediation. These divisions align with long-term industrial decarbonization trends across iron ore processing, aluminum production, waste management, and additive manufacturing sectors.

The company’s Montreal headquarters and dual manufacturing facilities (3,800 m² and 2,940 m²) support its development and commercialization of proprietary plasma technologies. Operations maintain ISO 9001:2015 and AS9100D certifications, reinforcing the company’s quality and aerospace-grade manufacturing standards.

PyroGenesis intends to continue monitoring the VCR project closely and remains optimistic that the CCAA process will yield a sustainable resolution for this significant biofuel initiative in Quebec.