Charbone Hydrogen Receives Independent Valuation of US $60.8 Million And Anticipates Significant Growth Economics for North American Green Hydrogen Production Facilities Rollout

(TheNewswire)

Brossard, Quebec, MAY 14, 2024 – TheNewswire -CHARBONE HYDROGEN CORPORATION (TSXV: CH;OTCQB: CHHYF; FSE: K47) (the “Company” or “CHARBONE”), North America’s only publicly traded pure-play green hydrogen company, today announced that the Company has received a US$60.8 Million valuation from an independent valuation and financial due diligence firm.

CHARBONE is focused on delivering a near-term network of modular green hydrogen production facilities across North America. The Company has established a decentralized, opportunistic approach to green hydrogen production using grid-connected renewable energy sources to produce green (H2) dihydrogen molecules by eco-friendly energy solutions for industrial, institutional, commercial and future mobility users.

Having just reaffirmed priority launch plans to scale and deliver green hydrogen production facilities in both the US and Canada during the second half of 2024, CHARBONE engaged the valuation advisory firm to determine the Company’s current fair market value. The independent business valuation was completed utilizing four methodologies with associated weighted values, including market capitalization/capital investments made (45%), book value (45%), market comparisons to similar companies operating in the green hydrogen production environment including Hydrogen De France, Monarch Energy, and Lhyfe, (7%) and discounted cash flow with a net present and terminal value (3%). Based on the findings, CHARBONE’s weighted valuation is US$60.8 Million. An exhibit from the valuation report is included in this press release below.

Located near Montreal, Quebec, its Sorel-Tracy Green Hydrogen Project will serve as the Company’s flagship facility, giving CHARBONE a first-mover advantage with production starting later this year. Additionally, a second green hydrogen production project in the Detroit, Michigan area is scheduled to be operational in 2024 as well. In total, CHARBONE plans to build and deliver 16 green hydrogen production facilities across North America by 2030.

Summary of Key Valuation Assumptions (in US$):

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Interest in sustainable energy solutions continues to propel the green hydrogen market into the investor spotlight. Projections from industry analysts such as Precedence Research indicate that the market will reach US$89.2 billion by 2030, and interest and investment are surging. Management believes that CHARBONE’s valuation results indicate a robust and economically compelling business model with solid performance potential.

“This valuation showcases the remarkable growth potential of CHARBONE’s current business and project interests in the Montreal and Detroit areas, as well as our ability to forge strong business and financial partnerships,” said Dave Gagnon, CEO of CHARBONE. “We’ve worked hard to create lasting relationships with government and industry partners to secure our current plant optimization plans in 2024. We feel incredibly confident in our long-term vision and prospects for investor success.”

Canadian and US policymakers continue to introduce and prioritize environmental initiatives that promote and incentivize renewable energy consumption, carbon pricing, and the development of renewable technologies. The Canadian Government announced its CHITC (Clean Hydrogen Investment Tax Credit) should see CHARBONE benefit from a refundable tax credit of up to 40%, depending on the carbon intensity of the hydrogen produced. CHARBONE could benefit as well from the Biden administration IRA for both the 40% ITC (Investment Tax Credit) and US$3 per kg PTC (Production Tax Credit). Additionally, the US Government recently announced seven regional clean hydrogen hubs were selected to receive US$7 Billion in ‘Bipartisan Infrastructure Law’ funding to accelerate the domestic market for low-cost, clean hydrogen for which CHARBONE is a member of two of them.

The Sorel-Tracy Green Hydrogen Project will serve as the Company’s flagship facility, giving Charbone a first-mover advantage with production starting in the second half of 2024. Following a phased approach and gradually accelerating to produce approximately 200 kg per day once reaching initial full capacity, the facility targets industrial uses. It replaces gray hydrogen with a clean, reliable, renewable alternative to hydrogen produced from fossil fuels.

About CHARBONE Hydrogen Corporation

CHARBONE is an integrated green hydrogen group focused on delivering a network of modular green hydrogen production facilities across North America. Using renewable energy sources to produce green (H2) dihydrogen molecules and eco-friendly energy solutions for industrial, institutional, commercial and future mobility users, CHARBONE plans to scale and deliver green hydrogen production facilities in both the US and Canada by 2024, with an additional 14 facilities planned by 2030. CHARBONE is the only publicly traded pure-play green hydrogen company with common shares trading on the TSX Venture Exchange (TSXV: CH); the OTC Markets (OTCQB: CHHYF); and the Frankfurt Stock Exchange (FSE: K47). For more information, please visit www.charbone.com

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. The forward-looking statements reflect 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. The forward-looking statements may be affected by risks and uncertainties in the business of Charbone. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Corporation’s Filing Statement dated March 31, 2022, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements.

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.

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