The Canadian firm has signed an asset purchase agreement to acquire the equipment already used by Quebec-based energy and fuels company Harnois Énergies.

While precise details on the equipment in question remain unrevealed, Harnois has been producing and dispensing hydrogen at its Quebec City multi-energy station since 2019, featuring a Cummins Hystat alkaline electrolyser.

Harnois had also partnered with Alstom and HTEC to supply hydrogen from the station to fuel North America’s first green hydrogen-powered train in 2023.

Charbone said it will “repurpose” the equipment to “fast-track” the commissioning of the first phase of its flagship Sorel-Tracy green hydrogen plant as it now eyes first production in Q4 2025.

The project will initially produce around 400kg of hydrogen per year using hydropower. Future expansion capacity has not been disclosed. Superior Propane has also signed an agreement to supply hydrogen produced by the site to current industrial grey hydrogen users.

Charbone is financing the acquisition by issuing $1m worth of shares at market price on the TSX Venture Exchange, with the remaining balance to be paid in cash instalments over a two-year period.

“By repurposing proven equipment — at a lower cost [than] a new build — and structuring the deal to preserve cash, we’re entering execution mode with strong capital backing and minimal dilution,” said President and CEO David Gagnon.

“This acquisition positions us to deliver green and high purity hydrogen to our industrial customers quicker, and with best-in-class operating equipment,” he added.