CHARBONE HYDROGEN announces a Definitive Agreement with Superior Propane for the Supply and Distribution of Green Hydrogen
May 05 2022 - 10:46AM
CHARBONE Hydrogen Corporation (“
Charbone”)
(TSXV:CH) is pleased to announce the execution, as of May 5, 2022,
of a definitive agreement with Superior Propane, a division of
Superior Plus LP (“
Superior” and, collectively
with Charbone, the “
Parties”) (TSX: SPB) for the
supply, marketing, sale and distribution of green hydrogen to
commercial and industrial customers located initially in Québec,
Canada (the “
Definitive Agreement”). Pursuant
to the Definitive Agreement, the Parties will leverage their
collective expertise in mobile energy distribution and green
hydrogen production to bring to the market green hydrogen at
competitive and affordable levels and to provide a convenient green
energy option for companies looking at the energy transition, in
the reduction of their carbon emissions and achieving their
sustainability goals in the decarbonization of the industrial
sectors.
Subject to the terms and conditions set forth in
the Definitive Agreement, the Definitive Agreement starts with a
preliminary term commencing on May 5, 2022, expiring on the
commencement of the supply term (the “Supply
Term”). The Supply Term, during which Superior shall
purchase hydrogen produced at Charbone’s facility, shall commence
on the date at which Charbone’s facility is first capable of
producing hydrogen meeting the forecasted minimum production as set
forth in the Definitive Agreement and shall end on the date that is
fifteen (15) months thereafter. The Supply Term shall automatically
extend for one additional five (5) year period (the
"Initial Renewal Term") unless Superior provides
notice of non-renewal to Charbone at least six (6) months prior to
the expiration of the Supply Term. Following the Initial Renewal
Term, the Supply Term shall automatically extend for additional one
(1) year renewal terms on an evergreen basis unless Superior
provides notice of non-renewal to Charbone at least six (6) months
prior to the expiration of the then-applicable Initial Renewal Term
or subsequent renewal term. Pursuant to the Definitive Agreement,
Charbone will provide Superior with green hydrogen from its
shovel-ready Sorel-Tracy, Québec modular and expandable facility,
with initial deliveries expected in the third quarter of 2022.
Superior’s industry-leading energy distribution
business, through its existing Québec business units’ network, will
be responsible for the marketing, sale, and delivery of green
hydrogen directly from Charbone’s facility to Superior’s existing
and new customers entering the hydrogen transition. These customers
include existing industrial users of hydrogen, new processes,
logistics, mining, transportation, and light and heavy mobility.
Under the Definitive Agreement, Superior will have the option to
enter into supply arrangements and/or equity participation with
respect to certain future Charbone hydrogen production facilities
and Hydrogen Refuelling Stations (HRS) in the Canadian and US
market. Charbone will keep the ability of developing, owning and
operating “on-site”, “over the fence” or “operation-only” hydrogen
production facilities servicing single end users’.
“We are excited to be working with Charbone to
offer green hydrogen to customers in Québec, Canada,” said Luc
Desjardins, Superior’s President and CEO. “Superior’s safety
record, logistics network and best-in-class mobile energy
distribution platform will enable Charbone to continue to expand
its hydrogen supply business. Superior’s access to Charbone’s green
hydrogen production will allow us to sell cost-effective green
energy to current and new customers and aligns with our larger
strategy to offer alternative energy products, including green and
low carbon energy alternatives, to our customers by leveraging our
existing energy distribution business.”
“The combination of Superior’s expertise in
delivering portable energy solutions to a wide variety of
industries with Charbone’s production of green hydrogen, will be a
game changer related to availability of zero-carbon energy
offerings to customers in Québec,” said Rick Carron, President of
Superior.
“This exclusive supply arrangement with Superior
is a highly important milestone for Charbone and sends a positive
market signal, that our modular and scalable regional hub concept
work in the new hydrogen market sector” said Dave B. Gagnon,
Chairman and CEO of Charbone. “The Definitive Agreement will allow
both parties to produce, develop, sell and distribute green
hydrogen throughout an extensive network in North America and will
offer Canadian industries and others, a new clean energy solution
alternative to start the energy transition now”.
About Charbone
Charbone is a Canadian green hydrogen group
established in North America. The company’s strategy consists in
developing modular and expandable hydrogen facilities. Through the
acquisition of hydropower plants in the United States of America
and Canada, Charbone will be able to produce green dihydrogen
molecules using reliable and sustainable energy to distinguish
itself as a provider of an environmentally friendly solution for
industrial and commercial enterprises.
About Superior
Superior is a leading North American distributor
and marketer of propane and distillates and related products and
services, servicing over 890,000 customer locations in the U.S. and
Canada.
Forward-Looking Statements
This news release contains statements that are
"forward-looking information" as defined under Canadian securities
laws ("forward-looking statements"). These
forward-looking statements are often identified by words such as
"intends", "anticipates", "expects", "believes", "plans", "likely",
or similar words. Specifically, this news release includes
forward-looking statements regarding Charbone’s expected
commercialization and supply and logistics business opportunities
related to green hydrogen, Charbone’s capacity of producing
hydrogen meeting the forecasted minimum production as set forth in
the Definitive Agreement, and the expected completion of Charbone’s
Sorel-Tracy production facility. The forward-looking statements
reflect Charbone's management's expectations, estimates, or
projections concerning future results or events, based on the
opinions, assumptions and estimates considered reasonable by
management at the date the statements are made. Although Charbone
believes that the expectations reflected in the forward-looking
statements are reasonable, forward-looking statements involve risks
and uncertainties, and undue reliance should not be placed on
forward-looking statements, as unknown or unpredictable factors
could cause actual results to be materially different from those
reflected in the forward-looking statements. The forward-looking
statements may be affected by risks and uncertainties in the
business of Charbone.
Except as required under applicable securities
legislation, Charbone undertakes no obligation to publicly update
or revise forward-looking information.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Contacts
For further information, please contact:
Dave B. Gagnon |
Daniel Charette |
Chief Executive Officer and Chairperson of the Board |
Chief Operating Officer |
CHARBONE Hydrogen Corporation |
CHARBONE Hydrogen
Corporation |
Telephone: +1 450 678-7171 |
Telephone:
+1 514 980 5841 |
Email: dg@charbone.com |
Email: dc@charbone.com |
Stéphane Dallaire |
Chief Financial Officer and Head of Corporate Finance |
CHARBONE Hydrogen Corporation |
Telephone: +1 514-234-2544 |
Email: sd@charbone.com |
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