BY JANICE MACKAY
SEPTEMBER 8, 2023
Owen Sound based Hydrogen Optimized Inc. (HOI) will use a repayable $3.5 million Government of Canada contribution to expand production of clean Hydrogen.
On Thursday, Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced the investment at HOI’s headquarters. The company plans to install advanced manufacturing equipment, which will create about 50 new high-skilled jobs.
HOI’s patented RuggedCell technology has the potential to produce zero-emissions hydrogen at an industrial scale. Major industries can use the hdydrogen which is created using electricity generated from renewable sources such as wind, solar, and hydro. That will support the road to decarbonization for industries including steel, ammonia, and cement.
“This investment in Hydrogen Optimized from FedDev Ontario continues to build momentum for Owen Sound’s future economy as we focus on clean energy and nuclear isotopes," said Mayor Ian Boddy. "We look forward to seeing Hydrogen Optimized’s future growth, research, and innovation.”
“With this investment, Hydrogen Optimized and its dedicated workforce will continue to build on its potential and establish the company as a key manufacturer in the global energy market," said Tassi. "Our government is pleased to support the growth of clean energy and innovative technology so we can work together to create good jobs for rural communities and build a greener and more sustainable future for Canadians.”
“With support from the Government of Canada through FedDev Ontario, we are expanding production of our RuggedCell water electrolyzers and creating 50 new full-time jobs in Owen Sound," said Andrew T.B. Stuart, President and Chief Executive Officer, Hydrogen Optimized Inc. "This community offers a depth of skilled people and business-friendly culture that makes it a great place to invest.”
Following the investment announcement, Mayor Ian Boddy joined Minister Tassi and other dignitaries for a Community Economic Development Roundtable for Bruce and Grey Counties at Owen Sound City Hall. At the meeting, participants discussed future opportunities for economic development, upcoming challenges, and partnerships with government, industry, and regional organizations.
Author of the article: Scott Dunn
Published Sep 07, 2023 •
Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario, or FedDev Ontario, announced a $3.5-million loan to Hydrogen Optimized in Owen Sound, Ont. Thursday, Sept. 7, 2023. (Scott Dunn/TheSun Times/Postmedia Network)Article content
Hydrogen Optimized will expand and automate production capacity in Owen Sound of its scalable RuggedCell electrolysis system, and add 50 jobs, with the help of about a $3.5-million federal economic development loan.
Missing production capacity has been holding back sales because purchasers of the technology have to feel secure that the company can deliver the product, Hydrogen Optimized president and CEO Andrew Stuart said at the announcement Thursday.
“We can’t sell anything unless we can produce it. How many cars could Toyota sell if they didn’t have a production line producing them?”
The jobs will be added as company production grows. Jobs will include more manufacturing jobs, technicians to program robots, engineers, research and development workers, as well as global sales and implementation staff, Stuart said. About 60 people work in the Owen Sound plant, some of whom are already part of the 50 new jobs, he said.
Filomena Tassi, minister responsible for the Federal Economic Development Agency for Southern Ontario, or FedDev Ontario, made the announcement on the shop floor at the plant, attended by Owen Sound Mayor Ian Boddy, Bruce-Grey-Owen Sound MPP Rick Byers, employees, investment partners and others.
Tassi said the funds will go toward an $11-million project that will increase RuggedCell electrolyzer production in Owen Sound fivefold, to 5,000 electrolyzer units per year for major industrial applications such as steel-making, and create 50 “rural” jobs.
“Something very special is happening here in Owen Sound,” she said. “We know that Canada is leading the charge in clean hydrogen production . . . and we are on our way to becoming a leader producer, user and exporter of clean hydrogen, as the growth continues.”
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Clean production means using electricity from non-carbon sources, including wind and solar, to make hydrogen, which itself emits no carbon when burned.
Tassi said Hydrogen Optimized is “at the forefront, producing cutting-edge technology called the RuggedCell electrolyzer, which is simpler to build, more cost-effective, and made right here in Owen Sound, using local suppliers.”
Behind Tassi, in the demonstration room, employees in white coats and face visors walked around the company’s commercial version of its 100,000-ampere electrolyzer system, which breaks oxygen and hydrogen out of demineralized tap water.
An adjacent control centre which was monitoring the operating electrolyzer cells, will monitor other RuggedCell installations once installed elsewhere in the world. The company has global ambitions, with Owen Sound as its base, Stuart said.
Tassi said the Hydrogen Optimized work provides a decarbonization option for hard-to-abate heavy industry, and enhances competitiveness, so the company has “endless potential” for growth. If steel and cement industries and other heavy emitters decarbonize, it significantly helps meet the country’s zero-emission targets, Tassi said.
Asked if the federal government would prioritize buying Canadian technology like Hydrogen Optimized’s hydrogen production system in its procurements, Tassi said where there are opportunities to support Canadian business “absolutely. When we look at procurement practices, we want to support and enhance the economic benefits locally.” She also said, “At the end of the day, we have a responsibility of delivering the best value for Canadians.”
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Stuart in his remarks noted his company is running “the world’s largest water-electrolysis cells” which he wants to export to the world, helping meet what’s estimated will be a US$1.4-trillion per year market by 2050.
“Let’s make this factory full and scaled and this factory (will be) the mother of factories around the world. I think this is something we can do.”
He called the federal money significant, he noted an additional $500,000 grant Ontario contributed, and investment tax credits which will help as the business scales up.
Stuart credited the foreign direct investment by the Swiss power rectifier and robotics giant ABB, which is being levered with federal funding and shareholders to build up the production capacity.
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He gently urged Tassi to encourage the government to buy his Canadian technology. “We want you to convince ministers (Jonathan) Wilkinson (Energy) and (Francois-Philippe) Champagne (Innovation, Science and Industry) Canadian technology should be in Newfoundland.” Two huge wind-powered hydrogen and ammonia projects are proposed to be built in western Newfoundland.
Ivette Vera-Perez, president and CEO of the Canadian Hydrogen and Fuel Cell Association called Hydrogen Optimized “a true Canadian leader in the development of hydrogen electrolyzers.”
“If we want to become a major producer and exporter of hydrogen, we need to work fast, we need to work hard, and we need to enable our Canadian companies to be leaders in Canada and to be able to export their products abroad.”
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She said the government funding will increase production capacity, through automation with robots and operational improvements, which will reduce the production costs of each electrolyzer cell.
“So we are long past the time (when people would ask) does electrolysis work? Can we do this? We are now in the times of all right, how do we improve it, how do we make it better, how do we improve the efficiencies?”
The funding “will allow the company to deliver on a number of large-scale projects that I know you’re looking at and are targeting,” Vera-Perez said.
“It is a game-changer,” she said in an interview. “It’s also at the same time incremental, in the sense that the industry needs a lot of capital but this is a game-changer for this company.”
For large-scale users like steel manufacturers, the hydrogen must keep flowing. Doing so requires production capacity to allow that hydrogen production to exist, she said.
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