As of June 14, 2022, CHARBONE HYDROGEN Corporation announced the execution of an offer to lease between its wholly-owned subsidiary, Charbone Hydrogen Manitoba, and the City of Selkirk, pursuant to which Charbone Manitoba offers to lease from the City of Selkirk a portion of land between three and five acres located west of the decommissioned wastewater treatment plant of the City of Selkirk.
Charbone Manitoba plans to use the Premises in accordance with the conditions of the Offer in order to build the first regional hub for the production and distribution of green hydrogen in Manitoba. Therefore, Charbone will utilize its expertise in the design, engineering, and construction of green hydrogen production facilities fueled by renewable energies, as well as the sale and distribution of its green dihydrogen in the prairies region.
The dimensions and precise location of the Premises will be specified in a formal leasing agreement. The Lease will have a minimum duration of three years beginning on or about June 14, 2022, subject to the terms and conditions of the Lease. Charbone Manitoba shall have the option to renew the Term for up to two more years on the same terms and circumstances as set forth in the Lease.
The Offer and the responsibilities of Charbone and the City of Selkirk to enter into the Lease are contingent upon the completion of an operation agreement and royalty payment agreement in connection with the proposed initial phase of a green hydrogen facility of up to 0.5 MW. Charbone will prepare the funding, development, and permitting work for this facility, with commercial operations and initial shipments anticipated to commence in the second quarter of 2023. Creating a circular water economy, Charbone plans to use “re-water” from the actual wastewater treatment facility and deliver residual oxygen to the City of Selkirk wastewater pound.
“We are very pleased that the City of Selkirk welcomes Charbone for its second Canadian facility and first green hydrogen project in Manitoba. It is our first step in Western Canada,” said Dave B. Gagnon, Chairman and CEO of Charbone. “Charbone’s model of small-scale, modular, and scalable regional hubs is receiving a lot of attention from the markets where we want to operate, as it is socially acceptable by the local communities, which sees themselves in our project, and it provides a solution to the transport and delivery limitations of hydrogen. The responsiveness and the enthusiasm received from the City of Selkirk and from the government of Manitoba have been instrumental in our decision to move forward with this project.”
“The location of Manitoba’s first green hydrogen project in the City of Selkirk is a true milestone in Manitoba’s energy sector, and a very exciting one at that,” said Cliff Cullen, Manitoba Minister of Economic Development, Investment and Trade. “As this project moves ahead, we look forward to the development of new jobs and new opportunities to further expand reliable and sustainable energy projects across the province.”
“The City of Selkirk is ecstatic about becoming home to Western Canada’s first green hydrogen production facility. With sustainability at the core of Selkirk growth strategy, this initiative will contribute to the development of new clean energy options for all of Manitoba and beyond. Charbone’s Selkirk facility has the potential to support existing companies and attract new investment and employment opportunities as market demand for carbon-free energy alternatives continues to increase. Innovative, dynamic and evolving, this represents something truly special,” said Tim Feduniw, Director of Sustainable Economic Development for the City of Selkirk.