HPQ Silicon Signs MOU for Commercial Fumed Silica Plant with Joint Venture Partner

HPQ Silicon Inc. announced that its subsidiary, HPQ Silica Polvere Inc. (HSPI), has entered into a non-binding memorandum of understanding (MOU) with a strategic industrial partner. The agreement outlines a path toward the construction and operation of a commercial-scale fumed silica production plant, anticipated to have a capacity of 1,000 tonnes per year. The estimated total project value is US$20.0 million.

The plant will be designed and constructed by PyroGenesis Inc., utilizing HSPI's proprietary Fumed Silica Reactor (FSR) technology. The strategic partner, whose identity is being withheld for confidentiality reasons, has secured project financing and will fund the construction of the facility. The company stated that the project and joint venture are supported by secured financing and an industrial partner with defined market requirements.

The joint venture entity is expected to own and operate the facility, with production sold under an offtake agreement to the strategic partner. HSPI will receive ongoing royalties per kilogram of fumed silica sold, providing HPQ with long-term revenue exposure while maintaining a capital-efficient profile. This structure aims to align HPQ's interests with production performance and create a scalable platform for future growth.

Final agreements are contingent upon the completion of ongoing third-party testing and validation of fumed silica produced by HSPI's existing FSR pilot plant. Samples have been sent to the strategic partner and an independent testing laboratory in the United States to confirm chemical and compositional characteristics for target commercial applications. The parties anticipate finalizing negotiations and executing definitive agreements by the end of the second quarter of 2026, pending successful validation.