Business

Universal Hydrogen in zero-carbon plane deals with Icelandair, others

Published

3 years ago

July 14, 2021

Universal Hydrogen, a U.S. firm that aims to do for clean fuel what Nespresso did for coffee, is poised to announce preliminary hydrogen deals with airlines including Icelandair as it looks at a possible listing as early as next year.

Europe’s Airbus has captured attention with a pledge to introduce 100-seat hydrogen-powered airliners by 2035.

But founded by former Airbus technology chief Paul Eremenko, Universal Hydrogen aims to speed up the introduction of hydrogen for smaller regional airplanes to 2025 by using fuel cells fed by modular hydrogen capsules to replace their turboprop systems.

“It is a $2.5 billion market on a regional scale,” Eremenko estimated in an interview.

Universal Hydrogen is one of a cluster of companies flocking to efforts to decarbonise aviation and says it is trying to solve a crucial problem with the clean but highly flammable fuel: how to connect production to airports where it is needed.

“We are the Nespresso capsule of hydrogen. We don’t grow the coffee and we don’t make the coffee-maker,” Eremenko told Reuters, referring to the Nestle division whose capsules revolutionised premium coffee-drinking habits.

In order to kickstart demand, Nespresso offered coffee makers while encouraging others to build compatible machines.

“It is a similar model for us … Somebody has to build the first coffee maker and our version of that is to develop a conversion kit and offer that to regional airlines,” he said.

The kits include a fuel cell and electric powertrain to replace conventional turboprops built by Pratt & Whitney Canada. Airlines’ cost of investing in the kits can be offset against long-term contracts to supply fuel via modular capsules.

From the viewpoint of a passenger, the propellers remain while the engine architecture and fuel system behind them change, with some seats removed to fit the hydrogen capsules.

Under the tentative deals to be announced on Wednesday, details of which have been supplied to Reuters, Spanish regional airline Air Nostrum would buy 11 kits to convert current and future ATR 72-600 turboprop airplanes.

Ravn Alaska, which last year inherited part of the operations of bankrupt Alaskan regional carrier RavnAir, would buy five conversion kits under a long-term hydrogen fuel deal.

Icelandair would also buy conversion kits for its regional fleet as part of a long-term fuel supply deal.

COST CHALLENGE

Both Ravn and Icelandair operate De Havilland Canada DHC-8 turboprops, more widely known as Dash 8. Universal Hydrogen’s kits can convert power systems used on Dash 8s or ATRs.

Not everyone is confident hydrogen will quickly solve the sector’s environmental challenges despite zero carbon emissions.

A European Union climate masterplan due on Wednesday is expected to include ambitious targets for alternative aviation fuels made from sources like waste. Boeing has focused more on such sustainable fuels than hydrogen.

Hurdles to be solved include cost and availability as well as uncertainty over how hydrogen systems will be certified.

“At the moment hydrogen is more expensive. We believe that in the future when hydrogen is more available it will become closer to being competitive,” Icelandair Chief Operating Officer Jens Thordarson told Reuters, adding governments should also provide support for the zero-emission fuel.

“There is a good opportunity for Iceland to be an early adopter of these kinds of technologies,” he added.

Iceland has plentiful renewable energy to create so-called green hydrogen without relying on fossil fuels in production.

Universal Hydrogen also plans to launch a design study with Deutsche Aircraft aimed at incorporating its capsules into a new version of the out-of-production Dornier 328 regional turboprop.

The same German company last week announced a partnership with H2FLY, a fuel-cell developer based in Germany, with a view to demonstrating a hydrogen-powered Dornier 328 by 2025.

Backed by investors including venture capital arms of Airbus, Toyota and JetBlue, Universal Hydrogen recently raised funds and is now exploring interim ‘Series B’ financing as it ramps up industrially.

Beyond this, it has its eye on joining a wave of listings via special acquisition vehicles or SPACs, “depending on how the SPAC market evolves over the next year or so,” Eremenko said.

“Hydrogen is the 100% decarbonisation solution and there is a willingness and need to start talking about such measures”.

(Reporting by Tim Hepher; Editing by Mark Potter)

Business

Carry On Canadian Business. Carry On!

Published

19 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

23 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

23 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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