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 agreement aims to build a 'well-to-market' supply chain that leverages Quebec's position as a regional hydrogen hub, minimizing long-distance fuel transport and reducing 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 is designed to allow Vema to expand into emerging markets including 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.
CHARBONE serves customers across sectors including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies, where ultra-high purity (UHP) gases are critical for high-precision manufacturing processes. The company is advancing a network of clean UHP hydrogen production plants across North America and select international markets, using a modular, decentralized, and demand-driven approach.
The announcement follows Vema's completion of drilling and initiation of pilot operations in Quebec, marking the latest milestone in the company's commercial progress. '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.
The partnership strengthens Quebec's broader hydrogen supply chain and positions the province as a highly efficient geography for hydrogen production and distribution, given its concentrated industrial demand and proximity to key transportation networks. For industrial gas customers in the region, the project promises a more reliable and cleaner supply of hydrogen, potentially reducing costs associated with long-distance transport.
CHARBONE is listed on the TSX Venture Exchange (TSXV: CH), the OTC Markets (OTCQB: CHHYF), and the Frankfurt Stock Exchange (FSE: K47). More information about CHARBONE is available at www.charbone.com. Additional details about Vema Hydrogen can be found at https://www.vema.earth/.
