Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF) is gearing up for a pivotal year in 2025 with the production of green hydrogen from renewable energy sources set to begin soon at its flagship Sorel-Tracey facility in Quebec.
“Production should be starting in about three months,” Charbone CFO Benoit Veilleux told Proactive. “All the equipment is ready and we’re completing the final preparations this January.”
The company plans to leverage the proceeds from its recently announced US$6 million convertible note offering to finalize Phase 1 of the Sorel-Tracey plant, initiate Phase 2, and advance its second facility in Detroit.
Veilleux highlighted the company’s approach to scalability and decentralized model, which offer advantages in the rapidly expanding green hydrogen market.
"Our smaller-capacity, phased approach allows us to navigate challenges like renewable energy sourcing and target established industrial hydrogen users," he said.
"Compared to larger projects that require massive investments in renewable infrastructure, our model permits us to start producing and generating revenue sooner."
This approach involves Charbone advancing each of its green hydrogen facilities in up to five phases. “We aim to increase capacity by adding electrolyzers, targeting one per quarter as part of our rapid growth strategy. By 2030, we plan to deploy 16 facilities across North America,” Veilleux said.
“We have forged great relationships with multiple equipment suppliers that will permit us to negotiate costs and get equipment in a timely manner to support our deployment.”
Markets such as New York, Ontario, Pennsylvania, Illinois, Wisconsin and California are central to Charbone’s growth strategy, as these regions align with the company’s focus on industrial users who are already utilizing hydrogen and are looking to transition to greener, more sustainable sources.
"We are targeting areas with three critical criteria: availability of renewable energy at low cost, proximity to industrial users of hydrogen, and potential for decarbonization," Veilleux explained.
Collaborating on white hydrogen
In addition to advancing its green hydrogen projects, Charbone is exploring opportunities in white hydrogen, a naturally occurring hydrogen gas found in Earth's crust.
As part of a special consultancy agreement with Enki GéoSolutions, the company has welcomed geologist Stephan Séjourné to its scientific team. He will provide advice to Charbone on white hydrogen collaboration options.
Veilleux acknowledged that the viability of white hydrogen extraction is not guaranteed but emphasized that Charbone’s approach is to work collaboratively with partners to identify promising projects.
Charbone’s other priorities in 2025 include expanding its team and continuing to collaborate with suppliers, distributors, and customers.
"This is the year where we start producing green molecules, expand to multiple locations, and solidify our role in the supply chain,” Veilleux said.
“We could also be looking at some acquisitions and partnerships because for each project we welcome any partnerships or investments from local stakeholders.
“The key thing is that we will be starting production of our first molecule and that will unlock the value of Charbone.”