Source: The Standard
With economic and political headwinds battering the electric vehicle and renewable energy sectors, Niagara Region’s economic development department is adjusting its zero-emission vehicle blueprint to mitigate some impacts.
If all goes according to plan, homegrown hydrogen could eventually power local trucks, buses and other commercial vehicles, in addition to heavy industry consumers across the province.
“We believe that Niagara can be a leader in hydrogen adoption, as it is the cleanest energy to decarbonize not only the transportation sector but the overall Canadian economy,” Felix Chinen, the Region’s electric mobility sector specialist, told councillors on the planning and economic development committee earlier this month.
Chinen said Atura Power plans to begin producing green hydrogen next year at its Niagara Falls facility, which will be the largest of its kind in the province.
The 20-megawatt plant will split water into hydrogen and oxygen molecules using an electrolysis technology powered directly from clean energy produced by the Sir Adam Beck II Generating Station.
“In this context, we have started to integrate key players across Niagara in the use of hydrogen as a green source of energy in the transportation sector,” Chinen said.
“We have also started discussions with Niagara College, which is incorporating fuel cell technology in its academic program. The college can be a great partner for other organizations, such as Niagara Transit and Niagara Parks Commission, when introducing the fuel cell buses to their fleet.”
Niagara Falls Coun. Joyce Morocco, who sits on the transit commission, said staff there are studying hydrogen-powered buses and reported that the challenges include the cost of the vehicles and lack of charging stations.
“We looked at the weather as well, and in the winter, because of the cold, the bus would use more battery power and might not make it to the charging station,” Morocco said.
“Some residents aren’t aware of these issues, but I think it is important that we learn as much as possible about hydrogen, because it is something that’s going to be here before we know it, and the more we understand, the better we can prepare.”
Daniel Turner, the Region’s manager of strategic growth services, said domestic and global factors, including relative decreases in oil and gas prices, are combining to slow the adoption of electric vehicles.
“EVs can, on average, cost an additional $10,000 compared to their gas equivalents, so we are seeing some economic pressures, and there are a lot more gas stations than charging stations available,” Turner said.
“This leads to consumer concern about range anxiety. We’ve all been out and had our phone die in the middle of the day and know that panic, but it’s not as debilitating as your electric vehicle dying in the middle of the day.”
Chinen said the region is working with Niagara’s lower-tier municipalities and rural communities to take advantage of provincial and federal programs for charging stations, such as the federal ZEVIP (Zero-Emission Vehicle Infrastructure Program) and the provincial ChargeON.
“We’re going to rely on the public-private collaboration towards this objective and to reduce the range anxiety on EV drivers,” Chinen said.
Turner said the recent imposition of U.S. tariffs has increased the complexity for Canadian businesses considering investments that retool their facilities to enter the North American EV supply chain.
“We have been connecting businesses to federal government programs, such as the recently announced Regional Tariff Response Program, to assist those who would like to become more competitive in the face of tariffs, but this uncertainty has definitely affected businesses,” Turner said.
Chinen referenced three Canadian projects that have been recently paused or halted due to investment uncertainty:
• Honda’s $15-billion plant in Alliston, Ont., is on hold;
• Umicore is delaying a $1.5-billion cathode facility in Loyalist Township between Napanee and Kingston;
• Northvolt is postponing a $7-billion battery cell project near Montreal.
On the brighter side, Chinen noted critical minerals, a key component in EV batteries, are relatively tariff-resistant and are currently being traded duty-free in foreign markets, including the United States.
He highlighted two Niagara-based companies in the sector. Destiny Copper in Thorold produces high-purity copper powders from waste streams using a patented CleanTech recovery system. ReGen Resource Recovery in Welland has exclusive rights to process synthetic graphite — the most prevalent mineral in electric vehicle batteries — from the former Union Carbide manufacturing site.
“To close the loop of critical minerals processing and consequently to create a circular economy, we are also encouraging the development of battery recycling facilities,” Chinen said.
“One company we are supporting is based in Thorold (EVSX) and expected to start operations by the end of this year. The battery recycling facility will be capable of recovering up to 15,000 tonnes of critical minerals per year, likely making it the largest battery recycling company in Ontario.”
Having both critical minerals processing and recycling capabilities in Niagara will be key anchors for potential investments in other parts of the EV and battery supply chain, such as electrolyte blends and cathode and anode facilities, Chinen said.
“All this ecosystem will complement the (Asahi Kasei) battery separator plant now under construction in Port Colborne as well as battery cell and auto assembly plants located across Ontario, aligning the Region’s objective to provincial ones in the EV space.”
Chinen also said the Region considers fleet electrification a rising priority and recently held discussions with Niagara Transit and Niagara Parks Commission.
“We are glad to see that Niagara Transit is about to launch its electrification plan, and the Niagara Parks Commission is willing to work with the economic development team in its electrification plan and strategy,” Chinen said.