CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, announced a Conditional Offtake and Infrastructure Development Agreement with Vema Hydrogen to develop a hydrogen production and processing project in Quebec. The agreement pairs Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities to serve up to 15 tons per day of merchant hydrogen demand from CHARBONE's industrial customer base.
This partnership sets the framework for a "well-to-market" supply chain in Quebec, leveraging the province's position as a regional hydrogen hub. Quebec's concentrated industrial demand and proximity to key transportation networks minimize long-distance fuel transport and reduce overall system costs, making it an efficient geography for hydrogen production and distribution. The project design allows Vema to expand into emerging markets including low-carbon maritime and aviation fuel manufacturing, e-fuels, and power generation, where CHARBONE's 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 agreement follows Vema's completion of drilling and initiation of pilot operations in Quebec, marking a milestone in its commercial progress. It broadens Vema's offtake pipeline into industrial gas distribution, e-fuels, and clean mobility. "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," said Pierre Levin, CEO of Vema. "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."
CHARBONE is a vertically integrated industrial gases company focused on developing a network of regional supply hubs for production, storage, and distribution of Ultra-High Purity (UHP) strategic industrial gases. The company serves customers in semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace. Its modular, decentralized approach supports scalable growth and stable revenue generation. More information is available at www.charbone.com.
Vema Hydrogen is a producer of low-carbon hydrogen using Engineered Mineral Hydrogen technology, which harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen. The company aims to make clean hydrogen a viable solution for large-scale industrial energy needs. More details can be found at https://www.vema.earth/.
