HydroGraph and Western International Sign Agreements for Planned Texas Graphene Manufacturing Facility

HydroGraph’s Large-Scale Manufacturing Facility to Initially Target Up to 360 Tons Per Year of Capacity, Expansion Opportunity to More Than 750 Tons Per Year

AUSTIN, Texas, July 14, 2026 (GLOBE NEWSWIRE) -- HydroGraph Clean Power Inc. (CSE: HG) (OTCQB: HGRAF) (“HydroGraph” or the “Company”) today announced that its U.S. subsidiary, HydroGraph USA Inc., has executed definitive agreements with Western International Gas & Cylinders, Inc. (“Western International”) to secure a long-term supply of acetylene gas and lease land for HydroGraph’s first large-scale U.S. graphene production facility, to be located in Bellville, Texas.

Under the Acetylene Purchase Agreement, HydroGraph USA will purchase acetylene for its Bellville, TX facility directly from Western International via pipeline for an initial ten-year term, with options for renewal. Acetylene serves as the primary feedstock for HydroGraph’s proprietary Hyperion Reactors, which convert hydrocarbon feedstocks into ultra-pure synthetic Fractal Graphene™ products through a highly efficient continuous manufacturing process.

Contemporaneously, the parties entered into a Ground Lease Agreement granting HydroGraph USA a long-term lease for land located at Western International’s Bellville, Texas facility. The site will host HydroGraph’s new commercial-scale graphene manufacturing facility, which will be constructed, owned, and operated by HydroGraph USA.

The Bellville facility will leverage Western International’s comprehensive acetylene production, storage, transportation and distribution infrastructure, including a dedicated pipeline connection supplying feedstock directly to HydroGraph’s manufacturing operations. The co-located configuration is designed to support safe, reliable and continuous production while minimizing transportation complexity and supply chain risk.

“The execution of these agreements represents a major milestone in HydroGraph’s production and supply chain strategy, addressing expected demand for ultra-pure graphene materials from both corporate and government counterparties around the world,” said Kjirstin Breure, Chief Executive Officer of HydroGraph Clean Power Inc. “Western International is uniquely positioned to partner with HydroGraph as the largest supplier of acetylene to the U.S. wholesale market. Their extensive production, storage, transportation and distribution infrastructure provides the safe, reliable, and continuous feedstock supply required to support large-scale graphene manufacturing.”

“Western International has spent decades building the largest acetylene production and distribution networks serving the U.S. wholesale market, with safety, reliability and customer service at the center of our operations,” said Brian Renouf, President of Western International. “The dedicated pipeline connection and long-term supply agreement with HydroGraph create a strong foundation for domestic production of advanced materials while leveraging existing infrastructure designed to ensure continuous, safe and reliable feedstock delivery. We are excited to support HydroGraph's efforts to establish a secure U.S. supply chain for graphene and other next-generation materials.”

The new Bellville facility will produce HydroGraph’s flagship Fractal Graphene™, known for its 99.8% carbon content, consistent fractal morphology and batch consistency, supplying customers across industries such as composites, coatings, and energy storage, among others.

HydroGraph’s proprietary Hyperion Reactor system is rated for production of 10 tons per year of FGA-1 and each modular unit can be produced within a matter of months at low capital expenditure. This model allows HydroGraph to increase production capacity on a timely basis in line with evolving market demand while ensuring optimal asset utilization and capital efficiency.

“Western International is an ideal partner for HydroGraph, combining large-scale feedstock production capabilities with deep operational expertise in safety, permitting, compliance and infrastructure management,” said Breure. “The combination of long-term supply security, dedicated pipeline access and room for future expansion creates a strong foundation for building what we believe can become one of North America's leading graphene manufacturing hubs.”

Construction of the Bellville, Texas facility is expected to commence following permitting and site preparation, with opening targeted in the first half of 2027. The site plan has been refined for increased production and cost efficiency, calling for an initial build of 40,000 square feet at an estimated cost of approximately US$5-6 million and a targeted production capacity of up to approximately 360 tons per year of HydroGraph’s ultra-pure Fractal Graphene™ once fully provisioned with Hyperion Reactors. The site will support post processing, inventory and distribution needs. The site is designed to support future expansion as market demand grows, with total capacity expected to exceed 750 tons per year over time within approximately 80,000 square feet of covered space.

The Company currently intends to install an initial configuration of six Hyperion Reactors at an estimated cost of approximately US$2 million at the Bellville facility to commence production upon building completion, then scale with market demand. To reduce production time, the Company intends to deploy third-party providers to assist in construction of the Hyperion Reactors in higher volume and establish a timeline for both the initial six reactors to install as well as an additional six reactors for expansion capability.

The Company is also installing three Hyperion Reactors at its newly opened Austin headquarters, to be used for development purposes. The Austin HQ reactors are expected to provide up to an aggregate of 30 tons per year of production capacity beginning in September 2026 following current construction projects focused on acetylene storage and other enhancements.

The new Texas agreements underscore HydroGraph’s commitment to onshoring advanced materials manufacturing and establishing a sustainable domestic graphene supply chain within the United States.

About HydroGraph
HydroGraph is a leading producer of pristine synthetic graphene using its proprietary Hyperion Reactor technology, which allows for exceptional purity, low energy use, and identical batches. The quality, performance, and consistency of HydroGraph’s graphene follow the Graphene Council’s Verified Graphene Producer® standards, of which very few graphene producers are able to meet. For more information or to learn about the HydroGraph story, visit: https://hydrograph.com/. For company updates, please follow HydroGraph on LinkedIn at https://www.linkedin.com/company/hydrograph/ and X at https://x.com/HydroGraphInc.

Trademarks: HydroGraph™ and Fractal Graphene™

Forward-Looking Statements
This news release contains certain “forward-looking statements” and certain “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements in this news release include, but are not limited to, statements regarding: the construction, development, timing, commissioning and operation of HydroGraph’s planned Bellville, Texas graphene manufacturing facility; the anticipated commencement of construction, permitting and site preparation activities; the expected opening of the facility in the first half of 2027; the planned size of the facility and covered space; targeted production capacity, including initial capacity of up to approximately 360 tons per year and future expansion to more than 750 tons per year; the intended installation, deployment and scaling of Hyperion Reactors; the use of third-party providers in reactor construction; anticipated demand for HydroGraph’s products; expected benefits of the agreements with Western International, including feedstock security, supply chain reliability and operational efficiencies; future expansion opportunities; the commissioning and production capacity of the Austin headquarters reactors; and HydroGraph’s plans, objectives, expectations and business strategy generally. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plan”, “target”, “designed”, “project”, “potential” or similar terminology.

Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable, and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of HydroGraph to control or predict, that may cause HydroGraph’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: HydroGraph’s ability to implement its business strategies; risks associated with general economic conditions; adverse industry events; stakeholder engagement; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; risks relating to the construction, development and commissioning of the Bellville, Texas facility; the timing and receipt of required permits, approvals, licences and authorizations; delays in site preparation, construction, equipment procurement, delivery or installation; cost overruns, inflationary pressures and increases in capital and operating costs; the availability of qualified contractors, labour, materials and equipment; the successful commercialization and scalability of the Company's Hyperion Reactor technology; the Company's ability to achieve anticipated production capacity, operating efficiencies, product quality and commercial performance; reliance on key suppliers and counterparties, including Western International; disruptions to feedstock supply, utilities, transportation or other critical infrastructure; changes in market demand for graphene products; the Company's ability to enter into and maintain commercial customer relationships; the emergence of competing technologies or products; the Company's ability to execute its growth, expansion and manufacturing strategies on the timelines currently anticipated or at all; and other risks. HydroGraph does not undertake any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.

No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

CONTACTS:
Matt Kreps
Senior Vice President of Capital Markets and Investor Relations
+1-214-597-8200
matt.kreps@hydrograph.com

Len Fernandes
Firecracker PR for HydroGraph
+1-888-317-4687
len@firecrackerpr.com

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