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 partnership pairs Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities to meet growing demand from industrial merchant hydrogen customers, targeting up to 15 tons per day.
The agreement establishes a framework for a "well-to-market" supply chain, leveraging Quebec's status as a regional hydrogen hub. The province's concentrated industrial demand and proximity to transportation networks minimize long-distance fuel transport and reduce system costs. Vema can expand into markets like low-carbon maritime and aviation fuels, e-fuels, and power generation, with CHARBONE's capabilities integrated across 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.
This agreement follows Vema's completion of drilling and initiation of pilot operations in Quebec, broadening its 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 Hydrogen. "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 producing, storing, and distributing Ultra-High Purity (UHP) strategic industrial gases for sectors including semiconductors, artificial intelligence, data centers, pharmaceuticals, and aerospace. The company's modular, decentralized approach supports scalable growth and stable revenue generation. Vema Hydrogen produces low-carbon hydrogen via Engineered Mineral Hydrogen, harnessing subsurface chemical reactions for high-purity output. More information is available at www.charbone.com and https://www.vema.earth/.
This news release contains forward-looking information subject to risks and uncertainties. For details, refer to CHARBONE's Filing Statement on www.sedar.com.
