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 establish a scalable hydrogen supply chain in one of North America's fastest-growing energy hubs, leveraging Quebec's position as a regional hydrogen hub.
The agreement pairs Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities to serve growing demand from CHARBONE's industrial merchant hydrogen customer base, up to 15 tons per day. By combining these technologies, the partnership sets the framework for a 'well-to-market' supply chain, minimizing long-distance fuel transport and reducing overall system costs.
Quebec's concentrated industrial demand and proximity to key transportation networks make it a highly efficient geography for hydrogen production and distribution. 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 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.
The agreement comes on the heels of Vema completing drilling and initiating pilot operations in Quebec, representing the latest milestone in its accelerating commercial progress. It broadens Vema's offtake pipeline into industrial gas distribution, e-fuels, and clean mobility as the company 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.'
The partnership is significant for the region's industrial gas market, as it addresses the need for cleaner, more reliable hydrogen supply. By reducing transport costs and leveraging local production, the project could lower barriers for industrial customers seeking to decarbonize their operations. Additionally, the scalability of the project means it could serve as a model for other regions looking to build localized hydrogen supply chains. For more information, visit CHARBONE's website and Vema Hydrogen's website.
