CHARBONE Corporation, a vertically integrated industrial gases company, and Vema Hydrogen have announced a Conditional Offtake and Infrastructure Development Agreement to build a hydrogen production and processing project in Quebec. The partnership aims to establish a well-to-market supply chain in the region, addressing growing demand for clean, ultra-high purity hydrogen from industrial customers while reducing transport costs through local production.
The agreement pairs Vema's Engineered Mineral Hydrogen (EMH) technology, which produces low-carbon hydrogen through subsurface chemical reactions, with CHARBONE's purification, compression, and distribution capabilities. The site is expected to supply up to 15 tons per day to CHARBONE's merchant hydrogen customer base. Quebec's concentrated industrial demand and proximity to key transportation networks make it an efficient geography for hydrogen production and distribution, minimizing long-distance fuel transport and reducing overall system costs.
According to Dave Gagnon, President and CEO of CHARBONE, the market is demanding high-value industrial gases with cleaner, more reliable supply. By combining Vema's EMH feedstock with CHARBONE's infrastructure, the companies are strengthening Quebec's position as a regional hub for next-generation hydrogen. The project also allows Vema to expand into emerging markets such as low-carbon maritime and aviation fuel manufacturing, e-fuels, and power generation, where CHARBONE's purification and distribution could integrate into multiple parts of the value chain.
This agreement follows Vema's completion of drilling and initiation of pilot operations in Quebec, marking a milestone in its commercial progress. Pierre Levin, CEO of Vema Hydrogen, noted that across high-value markets, there is incredible demand for low-carbon hydrogen, and CHARBONE's established logistics networks provide the infrastructure and pathway to meet immediate market demand for industrial customers across North America.
The partnership is expected to anchor a scalable hydrogen supply chain in one of North America's fastest-growing energy hubs, leveraging Quebec's position as a regional hydrogen hub. CHARBONE's modular, decentralized, and demand-driven approach supports scalable growth and enables more stable revenue generation by serving mid-tier industrial gas customers with reliable supplies of UHP gases, including hydrogen, helium, and oxygen. Vema's technology, which harnesses natural chemical reactions below the Earth's surface, ensures predictable, cost-competitive output for large-scale industrial energy and baseload power needs.
For more information about CHARBONE, visit www.charbone.com. For more on Vema Hydrogen, visit https://www.vema.earth/.
