Disseminated on behalf of: Charbone Corp.
Benoit Veilleux, CFO of Charbone Corp. (TSXV: CH | OTCQB: CHHYF | FSE: K47), discusses the company’s North American industrial gas platform, with a focus on producing and distributing clean ultra-high-purity (UHP) hydrogen for manufacturing and technology sectors. Initially operating from Sorel-Tracy, Que., Charbone aims to build a modular network of production plants and regional supply hubs that reduce transport costs, improve delivery, and scale with customer demand, positioning the company to capitalize on growing UHP industrial gas demand across semiconductors, artificial intelligence, data centres, pharmaceuticals, and advanced manufacturing.
A modular hydrogen model built for disciplined expansion
Unlike many peers pursuing large, centralized hydrogen projects, Charbone’s modular approach is designed to locate production closer to customers and scale in stages with customer needs. According to Veilleux, “This decentralized approach lowers transportation costs, improves delivery time, and allows us to scale step-by-step based on demand.”
This model supports a more disciplined path to growth, with shorter timelines and lower capital intensity compared to multibillion-dollar hydrogen developments. It also gives Charbone flexibility to expand production capacity in line with customer demand rather than relying on large upfront builds. The company’s Sorel-Tracy facility now serves as the foundation for a broader network of clean UHP hydrogen supply hubs across Canada and select U.S. markets.
High-purity hydrogen expands the industrial gas opportunity
With clean UHP industrial gases becoming increasingly important for high-precision applications, Charbone is positioned to serve markets where reliability and purity are critical. Veilleux noted that, “Demand for ultra-high-purity hydrogen is expanding rapidly in the manufacturing and technology sectors.” This growth is supported by the rise of semiconductors, artificial intelligence, data centres, pharmaceuticals, and other advanced industrial applications. By focusing on customer-proximate infrastructure and regional distribution, Charbone aims to provide investors with exposure to a hydrogen-focused industrial gas platform that is transitioning into revenue-generating operations. The company’s strategy is built around proven technology, controlled capital spending, and near-term cash flow, factors that appeal to investors looking for disciplined growth in the clean industrial gas market.
Commercial production and supply hubs anchor Charbone’s growth strategy
Recent milestones include the start of commercial operations at Sorel-Tracy, commercial deliveries into Ontario, the announcement of industrial gas regional supply hubs in Ontario and Nova Scotia, and first orders and repeat business from customers in New York state, which accelerated the announcement of the Albany, N.Y., regional hub. Veilleux says, “We have moved from development to commercial production and delivery.” These developments validate Charbone’s regional approach and support its plan to expand into selected Canadian and U.S. industrial corridors.
Looking ahead, Charbone is advancing Phase 1B at Sorel-Tracy in 2026, which is expected to increase production capacity by four times. The company also plans to build out storage, transportation, and distribution infrastructure (regional hubs) to support additional hydrogen output, broader industrial gas deliveries, existing customers, and new contracts currently under discussion.
Scaling clean UHP hydrogen for industrial gas growth
As Charbone continues to scale clean UHP hydrogen production and its industrial gas distribution network, it stands at the intersection of clean energy, advanced manufacturing, and high-value industrial supply. With commercial production underway, regional hubs in development, and growing customer traction across Canada and the U.S., the company is positioned for disciplined growth in North American industrial gases.
Transcript
Jim Gordon
Hi, I’m Jim Gordon, and you’re watching Market One Minute. Joining us is Benoit Veilleux. He’s the CFO of Charbone Hydrogen. Benoit, it is a great pleasure to have you, and let’s jump right in. Talk to us about Charbone Hydrogen.
Benoit Veilleux
Charbone is a North American producer and distributor of strategic industrial gases. Demand for ultra-high-purity (UHP) hydrogen is expanding rapidly in the manufacturing and technology sectors, such as semiconductors, artificial intelligence, data centres, and pharmaceuticals. Our hydrogen has the highest purity level, which enables Charbone to serve all types of customers.
Charbone’s strategy is different from large, centralized projects. We build modular production facilities located close to the customers. This decentralized approach lowers transportation costs, improves delivery time, and allows us to scale step-by-step based on demand. Our first H2 production facility in Sorel-Tracy, Quebec province is now in commercial operation, and it serves as a foundation for a growing network and supply hubs across Canada and select U.S. markets.
Jim Gordon
And Charbone has raised significant financing recently to scale hydrogen production capacity. How will this translate into commercial output for this year and beyond?
Benoit Veilleux
We are past proof of concept and technology risk and have begun producing and selling our products, so our focus has been on rapidly scaling up operations in line with high demand we are seeing. Our recent financing came at an important time for us, as Sorel-Tracy, Phase 1A reaches continuous commercial production in late 2025. In 2026, we are moving forward with Phase 1B, which will increase production capacity by four times. This additional output will support existing customers and new contracts that are now in discussion.
Beyond Sorel-Tracy, the capital also supports our hub-and-spoke model, including storage, transportation, and distribution infrastructure. This allows us to increase our industrial gases commercial deliveries, such as ultra-high-purity helium and oxygen, while maintaining strong operating discipline.
Jim Gordon
Benoit, your financing strategy reflects careful balance-sheet management. How do you assess investor appetite amid broader energy market volatility?
Benoit Veilleux
We continue to see strong investor interest in projects that are practical, disciplined, and scalable. The energy sector has experienced some volatility, but investors are looking for companies with four key elements: proven technologies, clear demand, controlled capital spending, and near-term cash flow. Charbone’s modular strategy reduces risk compared to large, multibillion-dollar projects with construction timelines exceeding many years. We invest step-by-step with shorter timelines and lower capital intensity. We also benefit from strong fundamentals and diversified products, for which the demand is high and growing in various sectors.
Overall, we believe that the market is rewarding companies that focus on execution and capital efficiency, and that aligns well with Charbone’s strategy.
Jim Gordon
Charbone has begun deliveries of clean UHP hydrogen. Talk about establishing hubs in Ontario and Nova Scotia and also your first order of clean UHP hydrogen from a U.S. customer in New York state.
Benoit Veilleux
Those are important milestones for us. In late 2025, we completed our first commercial delivery from Sorel-Tracy into the Ontario market. This confirmed both product quality and logistics performance. In 2026, we announced our industrial gases supply hubs in Ontario and Nova Scotia. The hubs will act as a local distribution centre and will expand to regional markets in advance of future production capacity additions. That allows us to provide reliable, repeatable, and timely on-demand industrial gases to regional customers. We have also received our first orders and repeat business from customers in New York state, which shows growing interest in the U.S. market. These developments validate our regional approach and support our plan to expand regionally into selected U.S. and Canadian industrial corridors.
Jim Gordon
So hydrogen, helium, oxygen—is Charbone becoming a full industrial gas company?
Benoit Veilleux
That’s a good question. We remain focused on our own clean ultra-high-purity hydrogen production, with a strong leadership in UHP and setting up the basis for other specialty gases. Our distribution platform is growing and becoming an important driver. It allows us to better serve our customers’ demand for gases like helium, oxygen, and hydrogen.
We believe these broader offerings help us stay resilient to market trend changes, an opportunity to support consistent growth for Charbone. We are building a hydrogen-focused and other high-margin industrial gas platform, which helps us transform customer relationships and generate additional revenue.
Jim Gordon
And what do you want investors to take away from this interview?
Benoit Veilleux
The key message is that Charbone is now executing. We have moved from development to commercial production and delivery. We are increasing capacity, expanding our distribution network, and growing our customer base. Our strategy is disciplined, modular growth, strong balance-sheet management, and expansion aligned with real demand. The market for ultra-high-purity industrial gases is growing, and we are positioned in high-value industrial segments where purity and reliability matter.
In simple terms, Charbone is building a practical and scalable industrial gases platform. We are focused on execution, partnerships, and long-term value creation for our customers and our investors.
Jim Gordon
Benoit, it’s been a pleasure talking with you. Thank you.
About Charbone Corp.
Charbone is a vertically integrated industrial gases company focused on developing and operating a network of 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 centres, advanced pharmaceuticals, and aerospace and defense technologies, where UHP gases are critical for high-precision manufacturing processes and operational performance.
To learn more about Charbone, visit its website. For the latest updates, follow Charbone online: LinkedIn, X, Instagram, Threads
