CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, has announced a Conditional Offtake and Infrastructure Development Agreement with Vema Hydrogen to develop a new hydrogen production and processing project in Quebec. The partnership aims to create a scalable hydrogen supply chain that leverages Quebec's position as a regional energy hub, minimizing long-distance fuel transport and reducing overall system costs.
Under the agreement, Vema Hydrogen will supply Engineered Mineral Hydrogen (EMH) feedstock, which CHARBONE will purify, compress, and distribute to its industrial merchant hydrogen customers. The project is designed to serve up to 15 tons per day, addressing growing demand from sectors including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies. The collaboration also opens opportunities for Vema to expand into emerging markets such as low-carbon maritime and aviation fuel manufacturing, e-fuels, and power generation.
“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 agreement follows Vema's completion of drilling and initiation of pilot operations in Quebec, marking a milestone in its commercial progress.
Pierre Levin, CEO of Vema Hydrogen, emphasized the strategic importance of the partnership: “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.”
The project's design allows for future expansion into multiple value chains, with CHARBONE's purification and distribution capabilities integrating into various parts of the hydrogen economy. Quebec's concentrated industrial demand and proximity to key transportation networks make it an efficient geography for hydrogen production and distribution, reducing the need for long-distance transport and associated costs.
CHARBONE operates a network of regional supply hubs for Ultra-High Purity (UHP) strategic industrial gases, including hydrogen, helium, and oxygen. The company's modular, decentralized approach supports scalable growth and enables more stable revenue generation. For more information, visit www.charbone.com. Vema Hydrogen produces low-carbon hydrogen using Engineered Mineral Hydrogen technology, harnessing natural subsurface reactions to produce high-purity hydrogen. More details are available at https://www.vema.earth/.
This news release contains forward-looking information subject to risks and uncertainties as described in CHARBONE's Filing Statement dated March 31, 2022, available on SEDAR at www.sedar.com. Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
