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 aims to strengthen the region's hydrogen supply chain by pairing Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities to serve growing industrial demand for up to 15 tons per day.
The agreement leverages Quebec's position as a regional hydrogen hub, creating a "well-to-market" supply chain that minimizes long-distance fuel transport and reduces overall system costs. The province's concentrated industrial demand and proximity to key transportation networks make it an efficient geography for hydrogen production and distribution. 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.
On the heels of completing drilling and initiating pilot operations in Quebec by Vema, the agreement represents the latest milestone in Vema's accelerating commercial progress. It broadens the company's offtake pipeline into industrial gas distribution, e-fuels, and clean mobility as Vema positions its technology for initial market deployment.
“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. “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 in sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies. Its modular, decentralized approach supports scalable growth and enables more stable revenue generation. More information is available at www.charbone.com.
Vema Hydrogen is a producer of low-carbon hydrogen using its unique Engineered Mineral Hydrogen technology, which harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen. The company aims to provide a cost-competitive, clean hydrogen solution for large-scale industrial energy and baseload power needs. More details can be found at https://www.vema.earth/.
