Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF) earlier this week announced it has signed a non-binding term sheet for a construction capital facility of up to $50 million.
The company said the facility would support the initial rollout of its clean hydrogen production projects across North America. It intends to deploy between five and ten projects from a pipeline of sixteen locations identified for development over the next five years.
Charbone told investors the capital facility would provide financial flexibility and backing from a group that supports its decentralized project model. It expects to install a new electrolyzer every three to six months under its phased approach.
The company highlighted that its Sorel-Tracy project in Québec is nearing production and could come online in approximately two months. It is also advancing a project in Michigan, as well as additional sites across Canada and the United States.
Charbone stated that the funding will allow it to invest between $5 million and $10 million per site. CFO Benoit Veilleux described the term sheet as “a great milestone” and said the company is moving quickly to place its production infrastructure where market demand is already present.
The company said further updates on deployment progress will follow in the coming months.