Mr. Andrew White reports

CHAR TECH AWARDED $2.25 MILLION FROM ONTARIO TO ACCELERATE LOW-CARBON BIOCARBON PELLET COMMERCIALIZATION

Char Technologies Ltd. has been awarded a $2.25-million non-repayable reimbursement grant from the Ontario government's Forest Biomass Program for 50 per cent of eligible project costs to accelerate the Thorold renewable energy facility's commercialization of biocarbon pellets. The biocarbon pellets are a made-in-Ontario renewable reductant and fuel designed as a drop-in replacement for fossil carbon in steelmaking and other heavy industrial applications.

This investment supports Char Tech's work to optimize biocarbon pellet production at the Thorold renewable energy facility, improving durability, density and handling characteristics required for industrial use and long-distance transport. These advancements will help supply Ontario steelmakers and position CHAR Tech to export Ontario-made biocarbon to European markets where demand for low-carbon industrial fuels continues to increase.

Expanding the commercial pellet line is already under way and the company expects the upgraded line to be completed in 2026 to align with the installation timelines of the second high temperature pyrolysis (HTP) kiln as part of phase 2 facility construction.

"Our government is protecting forest sector jobs by empowering innovative businesses to develop the untapped potential of forest biomass," said Kevin Holland, associate minister of forestry and forest products. "We are investing in emerging technologies to bring next-generation renewable fuels to market and advance greener and cleaner manufacturing with made-in-Ontario forest products -- seizing our opportunity to establish Ontario as a global leader in biocoal."

"We thank the Ontario government for its support to accelerate Char Tech's work in advancing biocarbon pellets as a made-in-Ontario, drop-in replacement for fossil carbon in steelmaking," said Andrew White, chief executive officer of CHAR Tech. "This investment strengthens the market for forest biomass, supports jobs in the North and positions us to increase supply to local partners and to begin exporting Ontario-made biocarbon to Europe, further strengthening the province's trade opportunities."

About the Ontario Forest Biomass Program

Since its 2023 launch, the Forest Biomass Program has committed over $50-million to more than 55 projects supporting the Forest Biomass Action Plan, a key element of Ontario's actions to drive forest sector growth. Today's investment accompanies the release of two progress reports showcasing the province's growing forest bioeconomy:

The Forest Biomass Action Plan interim report documents key successes in the action plan's ongoing implementation, empowering the forest sector to maximize the value of wood, develop new revenue streams and create jobs

The Forest Biomass Action Plan research summary report highlights new and emerging biomass uses which will provide added economic and environmental benefits to Ontario's workers, families and businesses

In response to increased U.S. softwood lumber duties and tariffs, the government continues to protect forestry jobs and build a stronger, more resilient forest sector, delivering on commitments to workers, businesses and communities set in the Forest Biomass Action Plan and Sustainable Growth: Ontario's Forest Sector Strategy.

About Char Technologies Ltd.

Char Tech first-in-kind high-temperature pyrolysis (HTP) technology processes unmerchantable wood and organic wastes to simultaneously generate two renewable energy revenue streams, renewable natural gas (RNG) or green hydrogen and a solid biocarbon that is a carbon neutral drop-in replacement for metallurgical steelmaking coal. Char Tech's HTP is an ideal waste-to-energy solution that aligns with the global green energy transition by diverting waste from landfills and generating sustainable clean energy to decarbonize heavy industry.