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Charbone Hydrogen concludes Construction Agreement with Construction Sorel to kick-start the Construction of its Phase I Green Hydrogen Facility in Quebec

2/21/2023

Charbone announced that it has concluded the final negotiations and executed a special construction agreement based on a hybrid model between a “Cost-Plus Contract” and an “Integrated Project Delivery” agreement, between its wholly owned subsidiary, Charbone Hydrogène Québec Inc., and Construction Sorel Ltée.Securing this Agreement was the final item included in Charbone QC’s construction budget for a fast-track components integration, pre-construction activities, and site construction of its first green hydrogen Phase I facility in Sorel-Tracy, Quebec.

The parties decided on a hybrid construction model for the Agreement to ensure that the teams will prioritize collaboration and promote a sense of ownership and teamwork as all the parties involved will need to work together to achieve the desired on-site results within the timeframe and budget associated with the project. Charbone QC has already procured the necessary major components from its selected suppliers, and we anticipate that they will be ready for delivery to Construction Sorel for the integration work in the first week of March 2023. Charbone QC’s engineering team, BBA, is responsible for the design/engineering, and Construction Sorel is responsible for the modular integration of the major components and coordination of all the site work with its sub-contractors.

“The execution of this Agreement is crucial for our first construction project. Construction Sorel is an established local company that works on all kinds of industrial projects. Being able to work on a cost-plus project and have transparency and openness from a great local partner when establishing our facilities is very important for Charbone; hiring locally is in our DNA,” said Dave B. Gagnon, Chairman and CEO of Charbone. “Charbone’s strategy to produce its green hydrogen from modular and scalable facilities allows us to fast track the project in a timely and cost-efficient manner which will shorten the installation and commissioning process and allow us to accelerate our first kilogram production”.

“Construction Sorel is excited to participate in such an innovative project in our region,” said Sylvain Descheneaux, President at Construction Sorel. “We are pleased to have been selected by Charbone to integrate and built the initial phase I of this facility, which is literally in our back yard. We believe that this is a great project to start a collaboration in the energy transition, sharing the same community involvement is very important to us, and we recognize that Charbone management shares this community vision this with us”.