CHAR Tech’s $1M Raise Fuels Green Steel and Clean Energy Future

TORONTO, ON – December 12, 2025 – In a market increasingly hungry for tangible environmental solutions, CHAR Technologies Ltd. (TSXV:YES) has provided a fresh signal of confidence, announcing the closing of its fully subscribed C$1 million private placement. While modest in size, the deal’s composition—backed by institutional investors—speaks volumes about the perceived value of the company’s innovative approach to converting waste into high-value clean energy and industrial bi-products.

This capital infusion is earmarked for advancing a project pipeline that sits at the nexus of waste management, renewable energy, and industrial decarbonization. For stakeholders in sectors far and wide, including global health, the success of companies like CHAR Tech is a critical indicator of progress. The decarbonization of heavy industries like steelmaking, a primary target for CHAR’s technology, is not just an environmental goal but a public health imperative, promising cleaner air and more sustainable supply chains for everything from infrastructure to medical devices.

A Vote of Confidence from the Market

The details of the non-brokered private placement reveal a strategic financial maneuver designed to fuel growth. The offering consisted of 5,000,000 units at C$0.20 each, with every unit comprising one common share and one purchase warrant exercisable at C$0.30 for 24 months. The full subscription, particularly with institutional participation, serves as a powerful third-party endorsement of CHAR’s technology and commercial strategy.

This investor confidence is mirrored in the company's recent market performance. Leading up to the announcement, CHAR’s stock (TSXV:YES) saw three consecutive days of gains, closing up over 7% on December 11th. Over the past year, its share price has outpaced the Toronto Stock Exchange 300 Composite Index by more than 15%. Analysts have taken note, with Paradigm Capital maintaining a “Buy” rating and a C$0.55 price target, suggesting a significant potential upside from its current trading range. This optimism persists despite the company’s near-term losses, which are typical for a technology firm in its growth and scaling phase.

The C$1 million in gross proceeds will be deployed into general working capital, support for its ongoing project development, and investor relations services—all essential components for transitioning from technological validation to full-scale commercial operation. With a market capitalization that has grown over 380% since 2016 to hover around C$35 million, CHAR Technologies is a small-cap player with large-scale ambitions.

Turning Waste into a Decarbonization Engine

At the heart of CHAR Technologies' value proposition is its proprietary High-Temperature Pyrolysis (HTP) system. This process is a sophisticated form of thermal decomposition, heating organic wastes like unmerchantable wood and biosolids to over 800°C in an oxygen-starved environment. Rather than burning the material, the HTP process chemically converts it into two primary, high-value outputs: a synthesis gas (syngas) and a solid biocarbon.

The syngas can be upgraded into either renewable natural gas (RNG) or green hydrogen, both critical fuels for the energy transition. The biocarbon, marketed as CleanFyre™, is a carbon-neutral, drop-in replacement for metallurgical coal used in steelmaking. This dual-output model not only creates two revenue streams but also provides a powerful solution to multiple environmental challenges. It diverts waste from landfills, where it would otherwise generate methane, and it effectively destroys persistent pollutants like PFAS, known as “forever chemicals.”

The impact on heavy industry is profound. Steelmaking is one of the world's largest sources of CO2 emissions. By substituting fossil-based coal with a GHG-neutral biocarbon derived from waste, CHAR’s technology offers a direct pathway to decarbonize this hard-to-abate sector. This reduction in industrial emissions has a direct and measurable impact on global health, mitigating the respiratory illnesses and other health conditions linked to poor air quality.

The Thorold Facility: Where Innovation Meets Infrastructure

The newly raised capital will directly support the advancement of CHAR’s flagship project in Thorold, Ontario. This facility is rapidly moving from concept to reality, demonstrating the company’s ability to execute its vision. Phase 1, which involves the installation of the first of two commercial HTP kilns, is on track for commissioning in January 2026. This initial phase will process 35,000 metric tons of wood waste annually to produce 5,000 tons of biocarbon.

This output is already spoken for, thanks to a crucial offtake agreement with steel giant ArcelorMittal Dofasco, which also holds a 10.6% stake in CHAR Technologies. This partnership is a cornerstone of CHAR’s strategy, providing not just a guaranteed revenue stream but also invaluable validation from a major industrial end-user. Further bolstering the project is an C$8 million investment from BMI Group for a 50% interest in the Thorold facility and over C$13 million in combined funding from the provincial and federal governments.

Phase 2 of the Thorold project will see capacity double with a second kiln and, critically, add the equipment necessary to upgrade the syngas into grid-ready renewable natural gas. With three additional plants in development and six more in feasibility studies across Canada, Thorold is the blueprint for a scalable model that could significantly contribute to Canada's national decarbonization targets.

Riding the Multi-Billion Dollar Green Investment Wave

CHAR’s successful capital raise is a microcosm of a much larger trend dominating global finance in 2025. The sustainable investment market is booming, with Bloomberg NEF reporting over $56 billion flowing into clean energy and related technologies in the first three quarters of the year alone. The global sustainable finance market is projected to surge from approximately $754 billion in 2024 to over $2.5 trillion by 2030.

Within this wave, the markets for both RNG and biocarbon are showing explosive growth potential. The RNG market is driven by decarbonization policies and the advantage of using existing gas infrastructure, with some forecasts projecting a global market size approaching $150 billion by 2032. Similarly, the biocarbon market is expanding at a compound annual growth rate of over 15%, fueled by industrial demand for coal alternatives. A recent partnership between Weyerhaeuser and Aymium to produce 1.5 million tons of biocarbon annually underscores the immense scale and urgency of this demand.

For companies like CHAR Technologies, this environment provides fertile ground for growth. The combination of proven technology, strong industrial partnerships, and supportive government policy creates a compelling case for investors looking to align their portfolios with the transition to a low-carbon economy. As this transition accelerates, the innovations pioneered by CHAR will not only reshape industrial processes but also contribute to a healthier, more sustainable world.