BROSSARD, QC, Aug. 17,
2022 /CNW Telbec/ - CHARBONE HYDROGEN
Corporation (TSXV:CH) ("Charbone") is pleased to announce
the execution, as of August
16, 2022, of a non-binding
memorandum of understanding (the "MOU") between its
fully owned subsidiary, Charbone Corporation USA ("Charbone USA"), and NORTHWOODS HYDROPOWER
INC.("Northwoods"), pursuant to which the parties are
entering into discussion and negotiation for the acquisition by
Charbone USA of the Wolf River
Hydro Limited Partnership, which own a 700 kW operating
hydropower plant in Shawano,
Wisconsin.
Further to the acquisition by Charbone USA of the Wolf River Hydro Limited
Partnership, Charbone USA will
complete and update its due diligence on the Tower Kleber Limited
Partnership and the Black River Limited Partnership (collectively
with the Wolf River Hydro Limited Partnership, the "Limited
Partnerships"), consisting of a total of 2,760 kW portfolio of
three operating hydropower plants located in the Onaway region in Michigan.
The terms and conditions for the acquisition of each of
the Limited Partnership will be in the form of a purchase &
sale agreement to be concluded for each of the Limited Partnerships
(the "PSA's"). The parties wish to conclude a PSA and close
the acquisition of each Limited Partnership in stages, starting
with the acquisition of the Wolf River Limited Partnership to be
concluded on or before November 15,
2022, and the acquisition of the two remaining Limited
Partnerships to be concluded on or before December 15,
2022.
The Limited Partnerships are parties to
long-term power purchase agreements (the "PPA's") with
large local utilities and are expected to provide Charbone
USA with recurrent revenues
starting in Q4-2022. Charbone's strategy is to acquire its own
hydropower plants and to modernize and optimize them in order to
increase the production and the value of the assets for its
shareholders, and further assist Charbone with its deployment of a
green hydrogen regional hub.
Charbone brings to the table its expertise in the
development and the construction of modular and scalable facilities
dedicated to the production of green hydrogen. All plants provide
access to Charbone for land space so as to accommodate the green
hydrogen facilities while Charbone believes that the actual
capacities of the existing plants can be increased by the
automation and modernization of the facilities with newer hydro
turbine technologies.
Northwoods management and operation team have agreed to
continue to perform their duties under Charbone ownership and will
work and assist Charbone's engineering team to implement
optimisation, modernization, and automation projects at each of the
plants. Charbone intends to be one of the first green hydrogen
producer in the Midwestern United States.
"Charbone is pursuing its original plans to acquire
hydropower plants to support its green hydrogen regional hubs that
will grow with the market in specific regions where we believe
there is an actual industrial market for hydrogen. They are
high quality assets that can be modernized and optimized so as to
increase the value of such assets will secure a reliable and
consistent revenue stream for Charbone as well as unlock good
pricing baseload energy with low operating costs to produce green
hydrogen," said Dave B. Gagnon,
Chairman and CEO of Charbone. "Charbone's model is unique, with
its capabilities of managing low-cost renewable and reliable
infrastructure energy sources. This supports Charbone in its
work to prepare for the renewable energy industry transition toward
local production of green hydrogen with a limited cost of
transportation to the market".
About
Charbone
Charbone is a Canadian green hydrogen company established
in North America. The company's
strategy consists of developing modular and expandable hydrogen
facilities. Through the acquisition of hydropower plants in
the United States and in
Canada, Charbone intends to
produce green dihydrogen molecules using reliable and sustainable
energy to distinguish itself as a supplier of an environmentally
friendly solution for industrial and commercial
companies.
About
Northwoods
Northwoods, Wolf River Hydro Limited
Partnership, Tower Kleber Limited Partnership and Black River
Limited Partnership are U.S. based businesses, wholly
owned by a Canadian family, that have been operating the
Michigan and the Wisconsin hydropower plants for over 20
years.
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 revenues to be generated
by the acquisition of the Limited Partnerships, the negotiation and
completion of the PSA's between Charbone USA and each of the Limited
Partnerships, other statements regarding future
product developments, and markets, including with respect to
specific indications, and any other statements which are other than
statements of historical fact and the expected
timing of such events. The forward-looking statements reflect
Charbone's respective 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. Among the key factors
that could cause actual results to differ materially: whether
Charbone USA and each of the
Limited Partnerships are successful in negotiating and entering the
PSAs and the availability of, substantial
capital in the future to fund its operations.
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.
SOURCE Charbone Hydrogen Corporation