Business

This year could be pivotal for hydrogen technology in Canada

Published

2 years ago

January 16, 2023

As the Canadian Pacific Railway locomotive moves along the tracks in Calgary, something is clearly amiss.

It’s the typical size and look that you’d expect, but what’s absent is the low rumbling noise of the diesel engine.

Instead, this locomotive is powered by hydrogen fuel cell and battery technology as part of a trial by the railway to explore whether the low-emission vehicles are strong enough and reliable enough to potentially one day revolutionize operations at the company.

Over the last several years, there has been an increased focus on the potential for hydrogen to decarbonize many industries and help countries reach their climate goals, while revamping energy systems along the way.

The next 12 months will be critical, experts say, in understanding whether that vision could plausibly become a reality in the near future or remain part of the imagination for decades to come.

There is excitement in the Canadian industry about what 2023 will bring as several demonstration projects are set to take place, while construction will also begin on a massive new hydrogen production facility.

Testing underway

For CP Rail, the hydrogen locomotive completed its first “revenue trip” a few months ago with the expectation to have the trains operating in Vancouver, Edmonton and Calgary by the end of 2023. The next step will be testing out the technology through the Rocky Mountains.

“It’s a perfect test bed. If you can operate there: heavy haul, cold temperatures, the most challenging operational conditions I’ve ever experienced in my career. And if it works there, it will work everywhere,” CP’s chief executive, Keith Creel, said during a speech at the RailTrends 2022 conference in November.

“If this proves its mettle and it shakes out through the very tough validation test we’ll give it, [it will] truly be transformational for this industry.”

Relying on hydrogen as a fuel source isn’t a new concept, but technology is advancing to improve performance, at the same time as there is an increased focus on climate change around the world.

A new City of Edmonton hydrogen-powered bus sits in the parking lot of a transit garage. A second hydrogen bus will operate in nearby Strathcona County as part of a one-year pilot project. (Julia Wong/CBC)

This year will mark the start of a few other experiments as hydrogen-powered buses and semi-trucks hit the road.

A pair of transit buses will transport passengers in Edmonton and nearby Strathcona County as part of a one-year pilot project.

New production plant

Meanwhile, a hydrogen fuelling station is under construction in Edmonton to allow the Alberta Motor Transport Association to test out semi-trucks on the province’s highways. The organization is looking to offer up to four different truck models this year for local companies to try out.

“I think the next 12 months is largely a proof of concept,” said David Layzell, an energy systems architect with the Transition Accelerator — a non-profit organization set up to help Canada reach its climate goals — and professor emeritus in biological sciences at the University of Calgary.

David Layzell, an energy systems architect with the Transition Accelerator and professor emeritus at the University of Calgary, says for hydrogen to be cheaper than diesel, the higher cost of transporting hydrogen and constructing the fuelling station in Edmonton pose challenges. (CESAR)

“We can actually make hydrogen cheaper than diesel fuel today,” he said, although the challenge is the much higher cost of transporting hydrogen and constructing the fuelling station.

“We are only going to get those prices down by getting to scale,” Layzell said.

Hydrogen has been around for a long time, but there is renewed enthusiasm for the sector as a way to jump-start the transition to a world reliant on low-carbon energy.

Hydrogen is an energy carrier, and experts say it can be used primarily for heating and as a fuel for transportation.

The amount of pollution associated with hydrogen depends on how it’s made. For instance, if solar or wind facilities — rather than a coal power plant — produce the electricity that is used to create hydrogen, the emissions are relatively low.

Construction has just begun in northeast Edmonton on the largest hydrogen plant in the world by Air Products Canada. The $1.6-billion facility will use natural gas to produce hydrogen with the goal of sequestering 95 per cent of the emissions and store them underground.

François-Philippe Champagne, federal minister of innovation, science and industry, is shown in Edmonton in November 2022, announcing funding toward construction of the $1.6-billion Air Products hydrogen plant, the largest in the world. (Janet French/CBC)

“The challenge with hydrogen is a little bit of the chicken-or-the-egg challenge,” said Kevin Krausert, chief executive of Avatar Innovations Inc., a Calgary-based firm that helps develop energy transition technologies.

“Who’s going to build a major hydrogen facility if there’s no demand for it, and who’s going to build a whole bunch of hydrogen trucks or trains if there’s no hydrogen to supply it? So you’ve got this sort of supply-demand challenge.”

Construction of the Air Products facility, he said, begins to overcome that problem.

‘Too little, too late’

There is momentum in the hydrogen sector in Canada, but some experts warn that the most critical question in the next 12 months is not so much about the technology itself but how willing governments are to support the industry.

“That is relative to what’s going on to the south of us with the United States’ policy supports that are very strong and very attractive and could take all the capital [investment] that we might spend up here and divert it southward,” said Ed Whittingham, an Alberta-based public policy consultant.

Alberta-based public policy consultant Ed Whittingham says Canada will need to step up if it wants to be competitive in the hydrogen technology field with the U.S., which under new legislation could cover up to 75 per cent of the cost to produce low-carbon hydrogen. (CBC)

The U.S. government’s Inflation Reduction Act [IRA] includes significant subsidies to not only offset the cost of constructing a hydrogen facility but to subsidize its operations, among other funding programs.

In some cases, Whittingham said, up to 75 per cent of the cost to produce low-carbon hydrogen could be covered by the U.S. government.

“What really is going to determine whether hydrogen stays niche and stays small scale in Canada or whether it goes mainstream and Canada really becomes a serious competitor is our response to what the U.S. has done,” he said.

“And it could be a case, frankly, of too little, too late.”

The federal government is proposing a clean hydrogen investment tax credit to entice companies to develop new clean hydrogen projects. The tax credit will be worth at least 40 per cent for projects that meet certain labour and low-emission requirements.

In its 2022 fall economic statement, the federal government warned that the subsidies offered in the United States were more generous and increase the challenge to attract investment north of the border.

What’s holding back the hydrogen industry in Canada?

Ed Whittingham is a public policy consultant and the former executive director of the Pembina Institute.

“Canada will need to do even more to secure our competitive advantage and continue creating opportunities for Canadian workers,” the report said. “Without new measures to keep pace with the IRA, Canada risks being left behind.”

Ottawa is currently accepting feedback on its proposed hydrogen tax credit.

The $1.6-billion Air Products facility under development in Edmonton is receiving $300 million from the federal government toward construction and an additional $161.5 million from the Alberta government once the plant is operational.

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Business

The #1 Skill I Look For When Hiring

Published

2 days ago

September 17, 2024

Nick Kossovan

File this column under “for what it’s worth.”

“Communication is one of the most important skills you require for a successful life.” — Catherine Pulsifer, author.

I’m one hundred percent in agreement with Pulsifer, which is why my evaluation of candidates begins with their writing skills. If a candidate’s writing skills and verbal communication skills, which I’ll assess when interviewing, aren’t well above average, I’ll pass on them regardless of their skills and experience.

Why?

Because business is fundamentally about getting other people to do things—getting employees to be productive, getting customers to buy your products or services, and getting vendors to agree to a counteroffer price. In business, as in life in general, you can’t make anything happen without effective communication; this is especially true when job searching when your writing is often an employer’s first impression of you.

Think of all the writing you engage in during a job search (resumes, cover letters, emails, texts) and all your other writing (LinkedIn profile, as well as posts and comments, blogs, articles, tweets, etc.) employers will read when they Google you to determine if you’re interview-worthy.

With so much of our communication today taking place via writing (email, text, collaboration platforms such as Microsoft Teams, Slack, ClickUp, WhatsApp and Rocket.Chat), the importance of proficient writing skills can’t be overstated.

When assessing a candidate’s writing skills, you probably think I’m looking for grammar and spelling errors. Although error-free writing is important—it shows professionalism and attention to detail—it’s not the primary reason I look at a candidate’s writing skills.

The way someone writes reveals how they think.

Clear writing = Clear thinking
Structured paragraphs = Structured mind
Impactful sentences = Impactful ideas

Effective writing isn’t about using sophisticated vocabulary. Hemingway demonstrated that deceptively simple, stripped-down prose can captivate readers. Effective writing takes intricate thoughts and presents them in a way that makes the reader think, “Damn! Why didn’t I see it that way?” A good writer is a dead giveaway for a good thinker. More than ever, the business world needs “good thinkers.”

Therefore, when I come across a candidate who’s a good writer, hence a good thinker, I know they’re likely to be able to write:

Emails that don’t get deleted immediately and are responded to
Simple, concise, and unambiguous instructions
Pitches that are likely to get read
Social media content that stops thumbs
Human-sounding website copy
Persuasively, while attuned to the reader’s possible sensitivities

Now, let’s talk about the elephant in the room: AI, which job seekers are using en masse. Earlier this year, I wrote that AI’s ability to hyper-increase an employee’s productivity—AI is still in its infancy; we’ve seen nothing yet—in certain professions, such as writing, sales and marketing, computer programming, office and admin, and customer service, makes it a “fewer employees needed” tool, which understandably greatly appeals to employers. In my opinion, the recent layoffs aren’t related to the economy; they’re due to employers adopting AI. Additionally, companies are trying to balance investing in AI with cost-cutting measures. CEOs who’ve previously said, “Our people are everything,” have arguably created today’s job market by obsessively focusing on AI to gain competitive advantages and reduce their largest expense, their payroll.

It wouldn’t be a stretch to assume that most AI usage involves generating written content, content that’s obvious to me, and likely to you as well, to have been written by AI. However, here’s the twist: I don’t particularly care.

Why?

Because the fundamental skill I’m looking for is the ability to organize thoughts and communicate effectively. What I care about is whether the candidate can take AI-generated content and transform it into something uniquely valuable. If they can, they’re demonstrating the skills of being a good thinker and communicator. It’s like being a great DJ; anyone can push play, but it takes skill to read a room and mix music that gets people pumped.

Using AI requires prompting effectively, which requires good writing skills to write clear and precise instructions that guide the AI to produce desired outcomes. Prompting AI effectively requires understanding structure, flow and impact. You need to know how to shape raw information, such as milestones throughout your career when you achieved quantitative results, into a compelling narrative.

So, what’s the best way to gain and enhance your writing skills? As with any skill, you’ve got to work at it.

Two rules guide my writing:

Use strong verbs and nouns instead of relying on adverbs, such as “She dashed to the store.” instead of “She ran quickly to the store.” or “He whispered to the child.” instead of “He spoke softly to the child.”
Avoid using long words when a shorter one will do, such as “use” instead of “utilize” or “ask” instead of “inquire.” As attention spans get shorter, I aim for clarity, simplicity and, most importantly, brevity in my writing.

Don’t just string words together; learn to organize your thoughts, think critically, and communicate clearly. Solid writing skills will significantly set you apart from your competition, giving you an advantage in your job search and career.

_____________________________________________________________________

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

Business

Politics likely pushed Air Canada toward deal with ‘unheard of’ gains for pilots

Published

2 days ago

September 16, 2024

Anne Joseph

MONTREAL – Politics, public opinion and salary hikes south of the border helped push Air Canada toward a deal that secures major pay gains for pilots, experts say.

Hammered out over the weekend, the would-be agreement includes a cumulative wage hike of nearly 42 per cent over four years — an enormous bump by historical standards — according to one source who was not authorized to speak publicly on the matter. The previous 10-year contract granted increases of just two per cent annually.

The federal government’s stated unwillingness to step in paved the way for a deal, noted John Gradek, after Prime Minister Justin Trudeau made it plain the two sides should hash one out themselves.

“Public opinion basically pressed the federal cabinet, including the prime minister, to keep their hands clear of negotiations and looking at imposing a settlement,” said Gradek, who teaches aviation management at McGill University.

After late-night talks at a hotel near Toronto’s Pearson airport, the country’s biggest airline and the union representing 5,200-plus aviators announced early Sunday morning they had reached a tentative agreement, averting a strike that would have grounded flights and affected some 110,000 passengers daily.

The relative precariousness of the Liberal minority government as well as a push to appear more pro-labour underlay the prime minister’s hands-off approach to the negotiations.

Trudeau said Friday the government would not step in to fix the impasse — unlike during a massive railway work stoppage last month and a strike by WestJet mechanics over the Canada Day long weekend that workers claimed road roughshod over their constitutional right to collective bargaining. Trudeau said the government respects the right to strike and would only intervene if it became apparent no negotiated deal was possible.

“They felt that they really didn’t want to try for a third attempt at intervention and basically said, ‘Let’s let the airline decide how they want to deal with this one,'” said Gradek.

“Air Canada ran out of support as the week wore on, and by the time they got to Friday night, Saturday morning, there was nothing left for them to do but to basically try to get a deal set up and accepted by ALPA (Air Line Pilots Association).”

Trudeau’s government was also unlikely to consider back-to-work legislation after the NDP tore up its agreement to support the Liberal minority in Parliament, Gradek said. Conservative Leader Pierre Poilievre, whose party has traditionally toed a more pro-business line, also said last week that Tories “stand with the pilots” and swore off “pre-empting” the negotiations.

Air Canada CEO Michael Rousseau had asked Ottawa on Thursday to impose binding arbitration pre-emptively — “before any travel disruption starts” — if talks failed. Backed by business leaders, he’d hoped for an effective repeat of the Conservatives’ move to head off a strike in 2012 by legislating Air Canada pilots and ground crew to stick to their posts before any work stoppage could start.

The request may have fallen flat, however. Gradek said he believes there was less anxiety over the fallout from an airline strike than from the countrywide railway shutdown.

He also speculated that public frustration over thousands of cancelled flights would have flowed toward Air Canada rather than Ottawa, prompting the carrier to concede to a deal yielding “unheard of” gains for employees.

“It really was a total collapse of the Air Canada bargaining position,” he said.

Pilots are slated to vote in the coming weeks on the four-year contract.

Last year, pilots at Delta Air Lines, United Airlines and American Airlines secured agreements that included four-year pay boosts ranging from 34 per cent to 40 per cent, ramping up pressure on other carriers to raise wages.

After more than a year of bargaining, Air Canada put forward an offer in August centred around a 30 per cent wage hike over four years.

But the final deal, should union members approve it, grants a 26 per cent increase in the first year alone, retroactive to September 2023, according to the source. Three wage bumps of four per cent would follow in 2024 through 2026.

Passengers may wind up shouldering some of that financial load, one expert noted.

“At the end of the day, it’s all us consumers who are paying,” said Barry Prentice, who heads the University of Manitoba’s transport institute.

Higher fares may be mitigated by the persistence of budget carrier Flair Airlines and the rapid expansion of Porter Airlines — a growing Air Canada rival — as well as waning demand for leisure trips. Corporate travel also remains below pre-COVID-19 levels.

Air Canada said Sunday the tentative contract “recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline.”

The union issued a statement saying that, if ratified, the agreement will generate about $1.9 billion of additional value for Air Canada pilots over the course of the deal.

Meanwhile, labour tension with cabin crew looms on the horizon. Air Canada is poised to kick off negotiations with the union representing more than 10,000 flight attendants this year before the contract expires on March 31.

This report by The Canadian Press was first published Sept. 16, 2024.

Companies in this story: (TSX:AC)

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Business

Federal $500M bailout for Muskrat Falls power delays to keep N.S. rate hikes in check

Published

3 days ago

September 16, 2024

Anne Joseph

HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.

Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.

Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”

Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.

The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.

Those delays forced Nova Scotia Power to spend more on generating its own electricity.

This report by The Canadian Press was first published Sept. 16, 2024.

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