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 partnership aims to establish a "well-to-market" supply chain in one of North America's fastest-growing energy hubs, reducing long-distance fuel transport and overall system costs while meeting growing demand for clean industrial gases.
Under the agreement, Vema's Engineered Mineral Hydrogen (EMH) production will be paired with CHARBONE's purification, compression, and distribution capabilities to serve up to 15 tons per day of hydrogen demand from CHARBONE's industrial merchant customer base. The project is designed to be scalable, allowing Vema to expand into emerging markets such as low-carbon maritime and aviation fuel manufacturing, e-fuels, and power generation, where CHARBONE's infrastructure 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 significant milestone in its commercial progress. Pierre Levin, CEO of Vema, emphasized the importance of the partnership: "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."
Quebec's concentrated industrial demand and proximity to key transportation networks make it a highly efficient geography for hydrogen production and distribution. The province's role as a regional hydrogen hub minimizes the need for long-distance fuel transport, reducing costs and environmental impact. This project strengthens the broader supply chain and adds a valuable new resource for merchant industrial gas customers in the region.
CHARBONE is focused on developing a network of regional supply hubs for ultra-high purity (UHP) strategic industrial gases, serving sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense. The company's modular, decentralized, and demand-driven approach, combined with its integrated storage and distribution platform, supports scalable growth and enables more stable revenue generation. Vema's EMH technology harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen, offering a low-carbon alternative for large-scale industrial energy needs.
This collaboration is expected to have significant implications for the industrial gas market, providing a cleaner, more reliable supply of hydrogen while reducing transportation costs and carbon emissions. It also positions Quebec as a key player in the emerging hydrogen economy, potentially attracting further investment and development in the region.
