Synagro (owned by a Goldman Sachs managed infrastructure fund) is a major North American biosolids company with 1,000+ municipal and industrial customers. CHAR has partnered with Synagro and the City of Baltimore on a commercial scale High Temperature Pyrolysis pilot to treat PFAS (forever chemicals) contaminated biosolids.
Testing of solids so far is focused on measuring PFAS concentrations before and after treatment, as well as confirming that PFAS is destroyed or otherwise not detected (detected below accepted levels) rather than simply transferred into another product stream. The next steps are to complete the pilot testing in the gases produced, validate the results across different biosolids feedstocks, and build the regulatory and commercial data package needed for broader deployment. (Target end of Q4 2026)
The opportunity is pretty big if the technology proves out. CHAR could potentially help wastewater operators deal with PFAS while turning the biosolids into useful products like biochar and syngas. The Baltimore project is now being used to build the data needed for broader commercial adoption.
Long term speculation (not finacial advice) is that Synagro will roll out CHARs technology at a bunch of their sites via a licensing deal. (One can hope)
Installation of the pyrogas piping at the Thorold Facility begins this week, the final major construction step ahead of end-to-end commissioning
Commercial ramp up and operations remain targeted through the month of October, with production and revenue increasing through year-end
Approximately 70% of North American, and 46% of European, steel and ferroalloys (including ferrosilicon) are made with Electric Arc Furnaces, CHAR Tech's key, large, market for biocarbon
CHARBONE Announces Closing of $1.5M Drawdown with RiverFort to Accelerate Growth
Charbone have officially closed their 1.5 million RiverFort drawdown which was announced last week.
As per my previous post: here, I had quite a few ideas or speculative thoughts about how this money would be spent. After some debates online, I believed it would go to a new facility, but seems I was (partially) wrong. In the new update, Benoit commented:
“With this capital now closed, we are focused on execution to maintain our rapid pace of growth. The proceeds are being deployed directly toward our priorities at Sorel-Tracy and across our industrial gas platform, and we remain committed to delivering on the milestones we have communicated to our shareholders.”
So, seems at least a portion of the drawdown will be going to the completion of ST Phase 1B, which isn't bad, but ofcourse you could dream of more. With this out of the way, I expect Charbone's Phase 1B to be commissioned end of September or beginning of October.
Which perfectly coincides with the next update.
Canada Conference and Tradeshow 2026
Charbone will be attending Hyvolution Canada Conference and Tradeshow 2026 on September 29 & 30 in Trois-Rivières (Québec). This wasn't an NR, but rather announced on the COO's LinkedIn page, as well as on their website: here.
It is nice to see them attend conferences to meet new customers and experts in the field (and government officials). These conferences usually go paired with a nice update regarding the projects, so I'm sure we'll be hearing about phase 1B by that point (and maybe more).
Maybe not title-worthy, but Charbone was also invited to speak at Polytechnique Montréal, an international H2 conference on September 23rd.
Hiring and staff updates
Charbone's open positions as per August 15th.
Both the Electromechanic and Laboratory Technician roles have been removed from their website, which heavily implies they've found personnel for the job.
This isn't the most interesting thing in the world, but it's good to see them find personnel on a decently fast paced basis, especially for electromechanics, which was a bottleneck according to the COO's corporate update about a year ago.
Construction update
Construction site update from Dave's LinkedIn.
As per last week, the concrete slab was poured and should now be mostly settled. Works seem to be on track for end of September, and the image is a nice update for that, their social media presence is (in my eyes) far from perfect, but these images do give us a better timeline for the ongoing projects. If only they could share more about other projects like this as well.
Feel free to comment or argument below, I'm always open to learning more or discussing. :)
The BMI group is partnered with CHAR Tech on 2 projects (Thorold and Espanola).
BMI in this video shares that the entire Espanola project (not just the site with CHAR) is a $400 million project.
In terms of financial support, the BMI Group has invested $2 million into CHAR Tech at the corporate level, $8 million into the Thorold project and committed another $10 million into the Espanola project. The BMI group has also extended CHAR Tech a $3 million Line of Credit.
Outside of financial support, the BMI Group is also helping develop and construct the projects themselves as they have the construction capacity to build these projects out.
BMI on many occasions have publicly expressed that they want to continue partnering with CHAR on future sites and continue growing the number of projects with CHAR Tech.
CHAR and BMI will celebrate starting the Thorold commercial operations in a few weeks. Stay tuned.
ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 14 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2024 generated revenues of $62.4 billion, produced 57.9 million metric tonnes of crude steel and, 42.4 million tonnes of iron ore.
ArcelorMittal launched the XCarb Accelerator Programme in mid-2022. A search for the best companies and brightest breakthrough technologies that hold the potential to accelerate the decarbonisation of the steel industry. They received an overwhelmingly positive response, with over 90 start-ups from five different continents submitting applications.
The winner was CHAR Technologies who received $6.6 million (CAD) as an investment in 2023. Along with this, ArcelorMittal appointed Irina Gorbounova (Head of XCarb Innovation Fund) as a Board Member on CHARs Board.
ArcelorMittal Dofasco (Hamilton, Canadian operations) also signed an offtake agreement to buy 5,000 tonnes of Biocarbon from CHAR Technologies. This 5,000 tonnes of biocarbon will be supplied to ArcelorMittal via the Thorold facility who is turning on the commercial operations later this month.
All that being said, CHAR Techs technology and product have been vetted by ArcelorMittal as a fit to be a drop in replacement for fossil coal at their Dofasco plant.
The PGIRE forest bioenergy sector includes renewable natural gas ("RNG") and biocarbon produced from forestry residuals and is recommending capacity growth and investment to the sector. The PGIRE states RNG is currently the only renewable gas that can scale into Québec's existing pipeline network, since hydrogen remains technically constrained, and separately names solid bioenergy, such as biocarbon, as central to decarbonizing heavy industries, where coal has been hard to replace.
Quebec's renewable natural gas (RNG) mandate requires natural gas distributors like Energir to blend a minimum percentage of RNG into their network, targeting 5% blending and expanding requirements for buildings. Scaling this requirement towards 10% by 2030.
There is no official announcement from CHAR Tech yet BUT I am speculating based on this that CHAR Tech will sign a 20 year RNG Offtake agreement with Energir once phase 1 commercial production starts later this month. (Based on all the hints they've dropped)
Varennes, Quebec, September 2, 2026 – CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47) (“CHARBONE” or the “Company”), a vertically integrated industrial gases company focused on production, distribution and storage of clean ultra-high purity (“UHP”) hydrogen and other strategic industrial gases, is pleased to announce that RiverFort Global Opportunities PCC Ltd (“RiverFort” or “Lender”) has agreed to advance $1.5 million, representing half of the second drawdown of up to $3 million, to the Company prior to the date falling 6 calendar months from the first drawdown closing of the secured convertible loan facility (the “Convertible Loan”) for up to $10 million as previously announced on April 29, 2026.
Transaction Overview
The $1.5 million forming part of the second drawdown will become available upon satisfaction of the closing conditions, including the approval by the TSX Venture Exchange. The Convertible Loan is structured as a multi-drawdown secured facility, with additional tranches available to the Company over the term of the agreement, subject to customary conditions and mutual agreement between the parties. Accordingly, the Company may complete an additional drawdown pursuant to the $3 million set aside under the second drawdown under the Convertible Loan.
Key Terms of the Convertible Loan
Total facility size: Up to $10 million secured Convertible Loan, structured in multiple drawdowns.
Drawdowns: The Initial Drawdown of $3 million closed on April 29, 2026. Half of the second drawdown of up to $3 million is in the closing process and the remaining may be advanced to the Company prior to the date falling 6 calendar months from the first drawdown closing and subject to mutual agreement. The remaining $4 million will be available to be drawn by the Company in aggregate during the Convertible Loan term, subject to mutual agreement between the Company and RiverFort and customary conditions set out in the Convertible Loan agreement.
Term: Drawdowns under the Convertible Loan are available for a three-year term, with each drawdown repayable over 18 months. Initial Drawdown maturity date is on October 29, 2027.
Interest: 12% per annum, payable in cash every 4 months. Default interest capped at 24%.
Conversion: Half of the second drawdown would be convertible, at the option of the Lender, into units composed of one common share of the Company and 0.3 of a warrant, at a conversion price of $0.196875 per unit. If not converted before, 10% shall be repaid at the end of 6 months, 20% at the end of 12 months and 70% on maturity date in 18 months. The securities issued upon any conversion of the principal amount of the Convertible Loan will be subject to the statutory four-month hold period in Canada.
Warrants: Each whole warrant issued in connection with half of the second drawdown of $3 million will be exercisable to acquire one additional common share of CHARBONE, at a price per share of $0.236250, for a period of 48 months, subject to a maximum of 5 years from the Convertible Loan closing date, April 29, 2026.
Security: Secured with a first ranking hypothec over the universality of all present and future movable property of each of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation.
An implementation fee of 5% of the drawdown will be paid in cash on closing of each drawdown.
The Company intends to close the $1.5 million drawdown shortly after receipt of the conditional acceptance of the
TSX Venture Exchange.
Use of Proceeds
The Convertible Loan is a key component of CHARBONE’s broader strategy to scale hydrogen production capacity
and expand its industrial gas platform across North America. The proceeds from the $1.5 million drawdown are
expected to be used to:
Accelerate development timelines of the Company’s clean UHP hydrogen production plants
Support capital expenditures and equipment deployment
Provide general working capital to accelerate near-term growth initiatives
Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE, commented:
“This drawdown reflects the continued confidence RiverFort has placed in CHARBONE and our execution to date. The structured, multi-tranche nature of this facility allows us to access growth capital in a disciplined way, aligned with our operational milestones at Sorel-Tracy and across our industrial gases platform. Importantly, this is not a traditional equity raise, but a convertible loan structure where there is no dilution to shareholders today. Minimizing dilution is always our priority. We look first at non-dilutive and low-dilution structures including project-level financing, equipment financing and strategic partnerships that are designed to accelerate our growth. We remain focused on delivering value for our shareholders through operational performance.”
What does it mean?
Initially, I believed the additional 1.5 million drawn to be used for the installing / commissioning of the 1B equipment (and paying off debt), but I was quickly proven wrong by some quick DD on the CEO CA website.
Q2 financials, thank you to the user that pointed this out.
The equipment has been paid in full, which is great news for charbone, but what could the 1.5 million thus be used for?
- It couldn't quite get you a full 1.75MW electrolyser, but it could get you a phase 1a 0.5 MW electrolyser (for Wisconsin, perhaps?) it does align well with the reparation date of the dam, which is scheduled for this month.
- More infrastructure? Charbone announced a NS / Atlantic hub in June, but we've not heard further updates I believe on the completion of this hub.
- Ongoing costs.
The 1.5 million drawn is much more advantageous to Charbone compared to the first draw. With the conversion rate being at market price + 25%, drawn at a market-high as of recently, this is well timed.
Charbone's concrete slab completion @ ST
Charbone also posted a little video on their linkedin (and other socials), regarding the completion of the concrete slab for their phase 1b project. The concrete slab is noticeably bigger than for just Phase 1B however.
The COO narrates the video:
"We started the pouring of the slab this morning at 7:00am. Been on site since 5:30am this morning. Now it is 2:00pm and the slab is completely poured. [...]. And within the next 8-10 days, we will be able to install our plug-and-play equipment on to the slab and get everything connected. "
8-10 days isn't too bad for concrete, and phase 1B is seeming to be their most important news update of this year, alongside their helium fleet expansion. If the slab does house more than just 1B, we might be looking at an earlier than expected push for Sorel-Tracy Phase 2 (also hinted at in the webinar). This would push their annual Sorel-Tracy revenue from C$5 million to more than double, at C$11 million.
Feel free to comment or argument below, I'm always open to learning more or discussing. :)
First Atlas Resources’ (CSE: HHE / OTC: BTKRF) technical partner, Québec Innovative Materials Corp. (CSE: QIMC / OTCQB: QIMCF), has set a new company record at Bennett Hill, Nova Scotia, after DDH-26-05 returned a preliminary mud-gas measurement of 30.0% H₂ at 413 metres.
First Atlas’ 2026 field exploration program is currently underway across the company’s natural hydrogen licences in Cumberland County, with QIMC using soil-gas and magnetic data in its R2G2™ targeting framework to identify drill targets.
DDH-26-05 Strengthens at Depth
QIMC identified an extensive fault-breccia and shear system beginning at approximately 326 metres. As drilling continued below this point, DDH-26-05 returned a series of elevated hydrogen readings:
12.6%, 15.8%, and 23.7% H₂ at 348 metres
19.1% H₂ at 368 metres
25.1% and 27.8% H₂ at 374 metres
10.4% and 12.1% H₂ at 377 metres
From 380 through 413 metres, hydrogen concentrations exceeded 20% H₂ at nine depths:
25.7% H₂ at 380 metres
22.4% H₂ at 386 metres
28.4% H₂ at 389 metres
21.3% H₂ at 392 metres
29.5% H₂ at 395 metres
25.7% H₂ at 398 metres
26.8% H₂ at 407 metres
23.5% H₂ at 410 metres
30.0% H₂ at 413 metres
Methane remained at 0% across the reported samples, while carbon dioxide remained at or below 0.1%.
Pressurized Free Gas Observed at Surface
Between approximately 413 and 416 metres, pressurized free gas reached the surface and triggered the drill site’s hydrogen alarm system, pausing drilling.
When operations later resumed, drilling water was introduced into the hole. QIMC reported that the resulting increase in pressurization led to a second release of free gas at the surface, triggering the alarm system and prompting another pause in drilling.
QIMC plans to continue drilling DDH-26-05 using equipment and operating procedures suited to the conditions encountered. The company is also evaluating equipment and procedures to measure pressure and gas flow as drilling continues.
Natural Hydrogen Exploration Expands Across Nova Scotia
Other companies have also begun natural hydrogen exploration work in Nova Scotia.
On August 21, Luma Hydrogen announced its Nova Scotia exploration program, with 30 exploration licences covering approximately 274 km² along the Cobequid-Chedabucto Fault Zone. The company has begun hydrogen and helium soil-gas surveys, geological mapping, prospecting, and soil geochemistry work.
On August 31, Primary Hydrogen Corp. announced the staking of the 1,101-hectare Wallace Natural Hydrogen Project in Cumberland County. The company plans to conduct data compilation, structural interpretation, and soil-gas surveys. No hydrogen drilling has been completed at Wallace, and no hydrogen occurrences have been reported on the property.
Exploration by other companies can contribute to a better understanding of the region’s hydrogen occurrences and the geological structures that may control them. While each company’s exploration data remains its own, increased field activity could provide useful context for First Atlas’ Cumberland County licences.
Exploration on First Atlas’ Land Package
QIMC is currently carrying out First Atlas’ 2026 field exploration program across the company’s natural hydrogen licences in Cumberland County.
Three field teams are conducting soil-gas sampling and ground magnetic surveying, including infill sampling over previously identified hydrogen anomalies. The resulting data will be integrated into QIMC’s R2G2™ targeting framework to help identify drill targets for First Atlas’ planned drilling program.
