CHARBONE CORPORATION, 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 agreement aims to establish a "well-to-market" supply chain in the region, leveraging Quebec's strategic position as a hydrogen hub with concentrated industrial demand and proximity to key transportation networks.
Under the agreement, Vema's Engineered Mineral Hydrogen (EMH) production will be paired with CHARBONE's purification, compression, and distribution capabilities to serve growing demand from CHARBONE's industrial merchant hydrogen customer base, with capacity up to 15 tons per day. This partnership reduces long-distance fuel transport costs and minimizes overall system expenses, making the region highly efficient for hydrogen production and distribution.
"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 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.
On the heels of completing drilling and initiating pilot operations in Quebec by Vema, the agreement represents a milestone in Vema's 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. Pierre Levin, CEO of Vema, stated, "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."
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 across sectors including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies. The company's modular, decentralized, and demand-driven approach, combined with its integrated storage and distribution platform, supports scalable growth and enables more stable and diversified revenue generation.
Vema Hydrogen is a producer of low-carbon hydrogen, utilizing its unique Engineered Mineral Hydrogen technology that harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen. By applying geoscience to de-risk production and ensure predictable, cost-competitive output, Vema aims to make clean hydrogen a viable solution for large-scale industrial energy and baseload power needs. More information can be found at vema.earth and charbone.com.
This partnership is important as it positions Quebec as a leading hydrogen hub in North America, potentially reducing costs and emissions for industrial customers while supporting the transition to a lower-carbon economy. The agreement also highlights the growing commercial viability of emerging hydrogen production technologies like Engineered Mineral Hydrogen, which could play a significant role in decarbonizing hard-to-abate sectors such as aviation and maritime fuels.
