CHAR Technologies Ltd. (CHAR Tech) has announced a binding asset purchase agreement to acquire the biocarbon assets of a Québec-based metals and biocarbon company. This strategic acquisition includes a physical pilot and demonstration production facility located in Québec, proprietary intellectual property, and the assumption of related liabilities. Concurrently, the parties have established a definitive offtake agreement securing the supply of 62,500 tonnes of biocarbon over a five-year term, equivalent to 12,500 tonnes per year. This transaction marks a significant expansion of CHAR Tech’s operational footprint within the Canadian market, specifically targeting the integration of pelletization capabilities into their existing production pipeline.

The primary challenge addressed by this acquisition is the industrial need for standardized, high-quality biocarbon pellets suitable for heavy industrial decarbonization. While raw biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More is a valuable precursor, many metallurgical and heavy industrial processes require specific physical properties—such as high density and mechanical strength found in pellets—to serve as a seamless drop-in replacement for fossil-based coal. Furthermore, the industry faces the logistical hurdle of bridging the gap between raw production and long-term, reliable supply chains. By acquiring an existing facility with specialized pelletization technology, CHAR Tech bypasses the lengthy development cycles typically associated with greenfield infrastructure.

To resolve these challenges, CHAR Tech plans to implement commercial upgrades at the acquired Québec facility. These enhancements will increase production capacity to 15,000 tonnes per year of pelletized biocarbon. The facility will function as a specialized processing hub, converting raw biochar from CHAR Tech’s broader project network—including the Saint-Félicien and Lake Nipigon Renewable Energy Projects—into finished biocarbon pellets. The acquisition of proprietary intellectual property ensures that the company retains control over the specific manufacturing processes required to meet stringent industrial specifications.

The outcomes of this acquisition are multifaceted, providing CHAR Tech with immediate infrastructure and long-term financial stability. The US1,000,000assetpurchase,supportedbyaC3.5 million secured loan, allows the company to rapidly scale its output in Québec. The binding 62,500-tonne offtake agreement provides high revenue visibility over the next five years, de-risking the capital expenditure required for facility upgrades. Ultimately, this move strengthens the supply chain for industrial consumers seeking to reduce their carbon intensity through reliable, domestic biocarbon sources.