CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, and Vema Hydrogen have announced a Conditional Offtake and Infrastructure Development Agreement to develop a new hydrogen production and processing project in Quebec. The partnership is designed to create a scalable "well-to-market" supply chain in one of North America's fastest-growing energy hubs, leveraging Quebec's concentrated industrial demand and proximity to key transportation networks to minimize long-distance fuel transport and reduce overall system costs.
Under the agreement, Vema's Engineered Mineral Hydrogen (EMH) production will be paired with CHARBONE's purification, compression, and distribution capabilities to serve growing demand from CHARBONE's industrial merchant hydrogen customer base, with capacity up to 15 tons per day. The project's design also allows Vema to expand into emerging markets such as low-carbon maritime and aviation fuel manufacturing, e-fuels, and power generation, where CHARBONE's purification and distribution capabilities could integrate into multiple parts of the value chain.
"The market is demanding high-value industrial gases and our customers need cleaner, more reliable supply. By pairing Vema's EMH feedstock with our purification and distribution capabilities, we're strengthening Quebec's position as a regional hub for next-generation hydrogen," said Dave Gagnon, President and CEO of CHARBONE.
The announcement follows the completion of drilling and initiation of pilot operations in Quebec by Vema, marking the latest milestone in Vema's accelerating commercial progress. Pierre Levin, CEO of Vema, noted: "Across high-value markets - from aviation and maritime fuels to industrial gases, there is incredible demand for Vema's low-carbon Engineered Mineral Hydrogen. Now, more than ever, we need a pathway to deliver these low-carbon fuels. As a valued offtaker and partner, CHARBONE's established logistics networks provide the infrastructure and pathway to meet the immediate market demand for industrial customers across North America."
This partnership is significant because it addresses the need for a reliable supply of clean hydrogen for industrial customers in Quebec and beyond. Industrial sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies require ultra-high purity (UHP) gases for high-precision manufacturing processes. CHARBONE's modular, decentralized, and demand-driven approach, combined with its integrated storage and distribution platform for all UHP gases, supports scalable growth and enhances operational flexibility. The company serves customers across these sectors, where UHP gases are critical for operational performance.
The collaboration also has implications for the broader energy transition. By providing accessible, decentralized clean hydrogen, the project can help reduce carbon emissions in hard-to-abate sectors like industrial heating, heavy transport, and power generation. For the industry, this agreement demonstrates a viable model for integrating novel hydrogen production technologies with established distribution networks, potentially accelerating the adoption of low-carbon hydrogen. For the world, it represents a step toward localized clean energy solutions that can reduce dependence on fossil fuels and lower greenhouse gas emissions.
More information about CHARBONE can be found at www.charbone.com, and about Vema Hydrogen at https://www.vema.earth/.
Forward-looking statements in this release are based on management's expectations and involve risks and uncertainties. For details, refer to the Corporation's Filing Statement dated March 31, 2022, available on SEDAR at www.sedar.com.
