Canada Nickel & NetCarb Partnership Could Transform Northeastern Ontario Into Zero-Carbon Industrial Hub

• Canada Nickel Company and NetCarb are advancing their strategic partnership to develop a zero-carbon industrial cluster in Northeastern Ontario, utilizing tailings from the Crawford Nickel Project for carbon sequestration and valuable by-product generation.
• The NetCarb process has the potential to sequester up to ten times the amount of CO2 compared to Canada Nickel's existing IPT Carbonation technology while producing hydrogen, magnesium, and other industrial materials.
• Each tonne of Crawford tailings could store approximately 300 kg of carbon dioxide while producing 55 kg of hydrogen, which can be converted into 310 kg of ammonia or 545 kg of urea fertilizer.
• The partnership targets three focus areas: blue-green hydrogen and hydrogen-based products, magnesium-based materials for distributed carbon capture, and local biomass energy production with megatonne carbon removal capabilities.
• Canada Nickel and NetCarb plan to submit funding proposals through 2025 for lab-scale work in 2026, followed by pilot-scale demonstrations in 2027, with the goal of identifying strategic partners for full commercialization.

Canada Nickel Company Inc. (TSXV:CNC) (OTCQX:CNIKF) is a mining company focused on developing nickel-cobalt-iron projects in the Timmins Nickel District of Ontario, with its flagship Crawford Nickel Project representing one of the largest nickel sulfate deposits globally. The company has pioneered carbon sequestration technology through its patented IPT Carbonation process, positioning itself at the intersection of critical mineral production and climate solution development.

On October 22, 2025, Canada Nickel announced the expansion of its strategic partnership with NetCarb, outlining a comprehensive vision for transforming Northeastern Ontario into a zero-carbon industrial cluster. This development represents a significant evolution from the initial partnership announced on June 9, 2025, with the companies now identifying specific product pathways and commercialization strategies that could unlock substantial additional value from Crawford Project tailings while supporting regional industrial self-sufficiency.

Strategic Partnership Evolution & Technology Integration

The collaboration between Canada Nickel and NetCarb centers on integrating two distinct but complementary carbon sequestration technologies. Canada Nickel's existing IPT Carbonation process focuses on brucite mineralization, while NetCarb's proprietary technology targets more complete carbonation of serpentine minerals through a sophisticated hydrometallurgical approach.

Mark Selby, CEO of Canada Nickel, said:

"This next phase of collaboration with NetCarb is a pivotal step forward in our strategic partnership. We have completed an initial assessment of high potential products which leverage the minerals in our tailings, the inherent strengths of Northeast Ontario and each of our proprietary technologies to identify potential anchor industries for a Northeast Ontario zero carbon industrial cluster."

The NetCarb process involves serpentinite activation followed by processing through a CO2 activity swing reactor that dissolves and re-precipitates magnesium as solid carbonate minerals for permanent carbon dioxide sequestration. According to the companies, this technology has the potential to sequester up to ten times the amount of CO2 that Canada Nickel's IPT Carbonation can achieve, while simultaneously generating valuable by-products including hydrogen and magnesium materials.

Since the June 2025 partnership announcement, the companies have made measurable progress in understanding the economic and technical potential of applying NetCarb's technology to Crawford tailings. The partnership has identified three primary focus areas that could serve as anchor industries for regional industrial development: blue-green hydrogen and hydrogen-based products, magnesium-based materials, and biomass energy production with integrated carbon removal.

Blue-Green Hydrogen Production & Fertilizer Self-Sufficiency

One of the most significant aspects of the NetCarb process is its ability to produce what the companies describe as "blue-green hydrogen" a carbon-neutral hydrogen product that combines characteristics of both conventional blue and green hydrogen production methods. The process uses steam methane reforming to generate hydrogen from natural gas while sequestering the resulting carbon dioxide in Crawford tailings, eliminating greenhouse gas emissions.

The companies estimate that each tonne of Crawford tailings has the potential to produce 55 kg of hydrogen. This hydrogen production capability opens pathways to multiple downstream products with significant regional economic implications, particularly for fertilizer production where Eastern Canada currently relies on imports.

Hydrogen produced through the NetCarb process could be converted into ammonia using established industrial processes. Ammonia serves as the foundation for nitrogen-based fertilizers and explosives, and also has potential applications in hydrogen transportation and fuel storage. The companies estimate that the hydrogen from one tonne of tailings could produce 310 kg of ammonia.

Beyond ammonia, the process could support urea production a widely used agricultural fertilizer produced by combining ammonia with CO2. Eastern Canada currently imports urea, representing an opportunity for regional self-sufficiency. According to the company estimates, each tonne of Crawford tailings could ultimately yield 545 kg of urea, potentially reducing the region's dependence on external fertilizer sources.

The hydrogen itself could also be supplied directly to nearby natural gas pipelines, reducing the carbon footprint of regional energy supplies. This application has been the subject of significant research and development through existing government hydrogen innovation funds, potentially providing additional pathways for project support and commercialization.

Magnesium Products & Distributed Carbon Capture Infrastructure

The NetCarb technology generates magnesium-based materials as a parallel output to hydrogen production. These materials can be processed into products such as magnesium carbonate (MgCO3) or magnesium oxide (MgO), with the latter presenting particularly compelling opportunities for distributed carbon capture applications across Eastern Canada.

Magnesium oxide is highly reactive with carbon dioxide, making it an effective CO2 scrubbing agent. The partnership envisions leveraging Ontario's provincial road and rail infrastructure to transport MgO produced from Crawford tailings to businesses throughout Eastern Canada, effectively extending the carbon sequestration capabilities of the Timmins region beyond its immediate geographic boundaries.

Each tonne of Crawford tailings has the potential to generate 270 kg of low-carbon or carbon-neutral MgO utilizing the NetCarb process. This production volume, combined with the extensive ultramafic resources available across the Timmins Nickel District, could position the region as a major supplier of carbon capture materials for industrial applications.

Dr. Luke Keeney, Managing Director and CEO of NetCarb, said:

"NetCarb's enhanced carbon sequestration technology could significantly extend the value of Canada Nickel's tailings, positioning the Timmins Nickel District as a leading decarbonisation hub in Eastern Canada and unlocking new industries and economic opportunities for the region."

The magnesium products opportunity also addresses a current supply gap, as magnesium is another material where Ontario and Eastern Canada lack domestic production capacity. Establishing local magnesium production would support regional industrial self-sufficiency while creating additional revenue streams from tailings materials that would otherwise represent waste management challenges.

Biomass Integration & Megatonne Carbon Removal Potential

Northeastern Ontario possesses significant biomass harvesting capacity that has been underutilized over the past two decades as traditional pulp, paper, and forestry operations have closed. The Canada Nickel-NetCarb partnership has identified opportunities to integrate this regional biomass resource into the zero-carbon industrial cluster concept, creating additional pathways for both energy production and carbon removal.

Canada Nickel is already exploring the use of local biomass as a reductant to decrease the carbon footprint of its downstream processing facilities. The expanded partnership with NetCarb extends this concept to biofuel production and biomass power generation, with the critical addition of carbon capture and sequestration using Crawford tailings.

The partnership has outlined two specific biomass integration pathways. First, primary forestry biomass can be processed to produce bio-ethanol, with the CO2 generated during production captured and sequestered in tailings. Second, forest and agricultural biomass waste can fuel power generation, with emissions similarly captured and stored. Both approaches have the potential to be net carbon negative, achieving megatonne-scale carbon removal annually while generating valuable energy products or electricity.

This biomass integration concept represents a particularly innovative aspect of the partnership, as it transforms what would typically be a carbon-neutral biomass energy process into a carbon-negative one through the integration of tailings-based sequestration. The approach also addresses regional economic challenges by creating demand for currently underutilized forestry resources.

Selby stated:

"As we did with our initial development of our patented IPT Carbonation process, we will rapidly assess the technical and economic viability of each opportunity, leveraging available government funding to take each opportunity through each stage from lab scale to pilot scale to full feasibility."

Development Timeline & Strategic Approach

The partnership is pursuing a phased development approach designed to methodically advance each opportunity from concept through commercialization while managing technical and financial risks. Canada Nickel and NetCarb plan to submit funding proposals to various granting agencies through the balance of 2025, targeting lab-scale work on specific processes during 2026.

This development strategy mirrors the approach Canada Nickel successfully employed with its IPT Carbonation technology, which progressed from initial concept to patented process through systematic technical validation and pilot-scale demonstration. The companies anticipate that successfully developed processes will enable identification of potential strategic partners to support pilot-scale demonstrations in 2027.

Selby emphasized that this approach "will enable the Company to identify and attract potential partners to advance each of these opportunities as the Company continues to focus on advancing its flagship Crawford project." This statement highlights an important strategic consideration for investors: Canada Nickel intends to pursue partnership structures for these value-added opportunities rather than developing them solely through internal capital allocation.

The phased development timeline also provides multiple decision points where technical and economic viability can be assessed before committing additional capital. Each opportunity will need to demonstrate feasibility at laboratory scale before advancing to pilot scale, and pilot results will inform decisions about full commercialization pathways.

The availability of government funding represents a significant enabling factor for this development approach. Canadian federal and provincial governments have established multiple funding programs supporting hydrogen development, carbon capture technology, critical mineral processing, and clean energy projects. The partnership's focus on multiple product pathways that align with government priorities potentially increases the likelihood of securing development funding.

Implications for Crawford Project Economics & Timmins District Development

The NetCarb partnership has the potential to materially impact the economics of Canada Nickel's Crawford Project and other deposits across the Timmins Nickel District. Traditionally, mine tailings represent a liability requiring long-term management and environmental monitoring. The ability to generate revenue from tailings through carbon sequestration services and by-product sales could transform this liability into an asset.

The scale of potential by-product generation is substantial. With Crawford expected to produce significant tailings volumes over its mine life, the cumulative production of hydrogen, ammonia, urea, and magnesium products could represent meaningful additional revenue streams. The companies have provided specific estimates for by-product yields per tonne of tailings, though full economic modeling will require detailed engineering and market analysis during subsequent development phases.

Beyond Crawford specifically, Canada Nickel controls multiple other ultramafic deposits across the Timmins Nickel District. The NetCarb technology could potentially be applied to tailings from any of these projects, creating a district-wide carbon sequestration and by-product production infrastructure. This district-scale vision could support arguments for regional infrastructure investment and create economies of scale that improve individual project economics.

The concept of a zero-carbon industrial cluster also has implications for project permitting and social license. By positioning nickel production as the anchor for broader regional industrial development focused on climate solutions, Canada Nickel may be able to build stronger community and government support for its mining operations.

Investment Considerations for Canada Nickel Company

For investors evaluating Canada Nickel Company, the NetCarb partnership introduces both opportunities and considerations that extend beyond traditional nickel project assessment frameworks. The potential to generate additional revenue from tailings and position Crawford as an anchor for regional industrial development could enhance project economics and strategic optionality.

However, several factors warrant consideration. First, the technologies and processes discussed remain at early stages of development. The companies plan to conduct lab-scale work in 2026, meaning commercial-scale deployment remains years away and subject to technical validation. Second, successful commercialization will likely require securing strategic partners and government funding, introducing execution risks beyond Canada Nickel's direct control.

Third, while the by-product opportunities are promising, they would add complexity to project development and operations. Canada Nickel would need to either develop expertise in hydrogen production, fertilizer manufacturing, and magnesium processing, or structure partnerships that appropriately allocate risks, rewards, and operational responsibilities.

The partnership does align with several favorable market trends, including growing demand for low-carbon hydrogen, fertilizer supply security concerns, domestic critical mineral production priorities, and increasing corporate demand for credible carbon removal solutions. If successfully developed, the zero-carbon industrial cluster concept could create competitive advantages for Crawford nickel production in increasingly carbon-conscious supply chains.

Canada Nickel's approach of pursuing government funding and strategic partnerships for development reduces the near-term capital requirements and allows the company to maintain focus on advancing Crawford through feasibility studies and permitting. This strategy provides optionality without forcing premature capital allocation decisions on technologies still requiring technical validation.

For Investors

For investors in Canada Nickel Company, the NetCarb partnership introduces additional potential value streams and strategic positioning beyond conventional nickel project economics. The ability to generate hydrogen, ammonia, urea, and magnesium products from tailings while providing carbon sequestration services could materially improve project returns if successfully commercialized. The phased development approach, focus on government funding, and strategy of attracting strategic partners provides a methodical pathway for advancing these opportunities while managing risks and capital allocation.

However, investors should recognize that these opportunities remain at early development stages, with lab-scale work planned for 2026 and commercial deployment likely years beyond that timeframe. Success will require technical validation, favorable economic assessments, securing partnerships and funding, and navigating complex regulatory pathways across multiple industrial sectors. While the strategic vision is compelling, realization of value from the NetCarb partnership will depend on execution across multiple challenging development phases.

The partnership positions Canada Nickel at the intersection of critical mineral production, carbon sequestration technology, and clean energy infrastructure development all priority areas for Canadian and international industrial policy. If the company can successfully navigate the technical and commercial challenges ahead, the NetCarb partnership could establish Crawford and the broader Timmins Nickel District as a differentiated nickel production hub with integrated climate solutions capabilities. Investors should monitor development progress through 2026-2027 as lab and pilot-scale results will provide critical data points for assessing the commercial viability of this strategic vision.