Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF) has reported multiple milestones this week at its flagship Sorel-Tracy green hydrogen production facility in Québec, including the completion of electrical and water supply infrastructure, as well as the start of civil construction work.
The company said Hydro-Québec has completed the electrical interconnection of the site, linking the distribution network to on-site power infrastructure following the installation of a metering station three weeks earlier.
Electricity can now be delivered from the grid to the production area, enabling equipment installation.
Meanwhile, the Sorel-Tracy Water Department installed piping to connect the facility to a 14-inch main water line.
Charbone said the connection will provide sufficient water capacity for all five planned phases of the project.
With both power and water secured, the site is positioned to begin hydrogen production once equipment installation is complete, the company said.
Heavy civil construction has also commenced, with surveyors marking the site for building and production area development. Equipment deliveries are expected in the coming weeks.
As part of environmental stewardship efforts, the Quebec Ministry of the Environment identified a rare and endangered plant species, Three-awn grass, on part of the property. Charbone said it worked with Tetra Tech to relocate the plant to a protected habitat on-site.
“This update marks the completion of three critical milestones for our team,” Charbone CEO Dave Gagnon said in a statement.
“We are proud of the progress to date and remain on track to commence production this fall.”
Additionally, Charbone announced the closing of a shares-for-debt settlement with an arm’s length supplier, converting C$118,095 in payables into 1,968,254 common shares at $0.06 per share. The company said the arrangement supports its goal of conserving cash while advancing the Sorel-Tracy project.
The company also confirmed that, following exchange review of its previously announced US$1.5 million (C$2.1 million) convertible notes financing, it will issue 2,109,900 warrants to the placement agent. Each warrant will allow the holder to acquire one common share at $0.10 or the US dollar equivalent.
