CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47) 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 "well-to-market" hydrogen supply chain in the region, leveraging Quebec's position as a fast-growing energy hub. The agreement pairs Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities to serve industrial merchant hydrogen customers, with a capacity of up to 15 tons per day.
The project is designed to reduce long-distance fuel transport and overall system costs by tapping into Quebec's concentrated industrial demand and proximity to key transportation networks. This efficiency makes the region highly suitable for hydrogen production and distribution. The collaboration 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 be integrated into multiple parts of the value chain.
"The market is demanding high-value industrial gases and our customers need cleaner, more reliable supply," said Dave Gagnon, President and CEO of CHARBONE. "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."
The agreement follows Vema's completion of drilling and initiation of pilot operations in Quebec, marking a significant 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," 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 the production, storage, and distribution of Ultra-High Purity (UHP) strategic industrial gases. The company serves sectors including semiconductors, artificial intelligence, data centers, advanced pharmaceuticals, and aerospace and defense technologies. CHARBONE is advancing a network of clean UHP hydrogen production plants across North America and select international markets. Its modular, decentralized, and demand-driven approach, combined with integrated storage and distribution, supports scalable growth and stable revenue generation. For more information, visit 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 and baseload power needs. More information is available at https://www.vema.earth/.
The agreement underscores the growing demand for cleaner industrial gases and the strategic importance of regional hydrogen hubs in reducing transport costs and ensuring reliable supply. By combining Vema's innovative production method with CHARBONE's established distribution network, the partnership positions Quebec as a key player in the evolving hydrogen economy.
