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 well-to-market supply chain that leverages Quebec's position as a regional hydrogen hub, serving growing demand from CHARBONE's industrial merchant hydrogen customer base of up to 15 tons per day.
The agreement pairs Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities. This combination is designed to strengthen the broader supply chain by adding a valuable new resource for the region's merchant industrial gas customers. The project's design also 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.
Dave Gagnon, President and CEO of CHARBONE, stated, "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."
The province's concentrated industrial demand and proximity to key transportation networks minimize long-distance fuel transport and reduce overall system costs, making it a highly efficient geography for hydrogen production and distribution. This agreement follows the completion of drilling and initiation of pilot operations in Quebec by Vema, representing the latest milestone in Vema's accelerating commercial progress and broadening its offtake pipeline into industrial gas distribution, e-fuels, and clean mobility.
Pierre Levin, CEO of Vema, commented, "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."
CHARBONE is a vertically integrated industrial gases company focused on developing and operating a network of regional supply hubs for the production, storage, and distribution of Ultra-High Purity (UHP) strategic industrial gases. The company serves customers across sectors including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies. More information about CHARBONE can be found at https://www.charbone.com.
Vema Hydrogen is a producer of low-carbon hydrogen utilizing Engineered Mineral Hydrogen technology, which harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen. More about Vema is available at https://www.vema.earth/.
