CHARBONE and Vema Hydrogen Partner to Build Scalable Hydrogen Supply Chain in Quebec

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 scalable hydrogen supply chain that serves industrial merchant customers with up to 15 tons per day of clean ultra-high purity hydrogen.

The agreement pairs Vema's Engineered Mineral Hydrogen (EMH) production with CHARBONE's purification, compression, and distribution capabilities. This combination is designed to meet the growing demand for cleaner, more reliable industrial gases in the region. Quebec's position as a regional hydrogen hub, with concentrated industrial demand and proximity to key transportation networks, minimizes long-distance fuel transport and reduces overall system costs.

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 project's design also allows Vema to expand into emerging markets such as low-carbon maritime and aviation fuel manufacturing, e-fuels, and power generation. CHARBONE's purification and distribution capabilities could integrate into multiple parts of the value chain, supporting these new applications.

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." He added that CHARBONE's established logistics networks provide the infrastructure and pathway to meet immediate market demand for industrial customers across North America.

The agreement follows the completion of drilling and initiation of pilot operations in Quebec by Vema, marking a milestone in Vema's 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.

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 including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense. For more information, visit www.charbone.com.

Vema Hydrogen is a producer of low-carbon hydrogen using Engineered Mineral Hydrogen technology, which harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen. More details can be found at https://www.vema.earth/.

This partnership is expected to strengthen Quebec's position as a hydrogen hub and provide a reliable supply of clean hydrogen to industrial customers, reducing reliance on long-distance transport and lowering costs.