Hydrogen Optimized, electrolyzer company, gets federal funding boost.
[The Sun Times] An Owen Sound-based hydrogen company has received $4.8 million in federal funding to advance its technology.Sustainable Development Technology Canada announced in late May that Hydrogen Optimized would receive the funding toward its $12 million project to advance, scale and commercialize its large-scale green hydrogen production systems.
President and CEO Andrew Stuart said Monday that the SDTC investment is an important announcement for the company.
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“We went through a significant due diligence process that took us 16 months to get through,” Stuart said. “It is quite a competitive process so we are very grateful to have been selected.
“It shows that people are taking our technology very seriously with the impact it can have on major reductions of greenhouse gases.”
The company is developing what is called high-current RuggedCell water electrolysis technology, which uses green electricity to produce hydrogen and oxygen at a large scale through water electrolysis.
The funding will go toward the development of that technology and help the company scale the systems in order to make the world’s largest water electrolyzers, which can then be put into the world’s largest green hydrogen production facilities.
Hydrogen Optimized, a subsidiary of KEY DH Technologies Inc., is working with technology company ABB and engineering, project management and professional services firm Hatch on the project.
Stuart said the company’s technology is different from others in that it allows for very high currents – or amperes – to flow through the electroylzer, whereas the technology that now exists is low-current electrolyzers,.
The resulting commercial product will enable production systems of up to 200 megawatts and provides a stepping stone to systems up to 400 MW.
“Basically we are finding ourselves as a category leader in this large-scale hydrogen marketplace with the most economic way of delivery hydrogen production to those big, hard to evade industries like ammonia production, steel production, reducing the carbon intensity of petroleum production and mining,” said Stuart. “It is those heavy-duty applications and not so much something that goes at your corner station to make hydrogen for a fuel cell car, but the much, much larger segments of the market.”
The Canadian government introduced the Canadian Net-Zero Emissions Accountability Act in November 2020 to formalize its target of net zero emissions by 2050, with interim reduction targets at five-year intervals along the way.
Stuart said their technology could help the government go a long way to reaching those targets by reducing the emissions of some major producers.
“Just steel, ammonia and shipping is 13 per cent of the world’s greenhouse gases and these are those hard to evade industries that are very, very large in scale,” said Stuart. “That is the Hydrogen Optimized focus.”
The SDTC announced a total of $44.3 million in funding for 11 green technology companies, including Hydrogen Optimized.
Stuart said that both MP Alex Ruff and MPP Bill Walker have been very supportive of the company and what it is doing.
“I am pleased to see investments in businesses in Bruce-Grey-Owen Sound. I had the opportunity to meet with Hydrogen Optimized and tour their facility,” Ruff said in a news release. “It is important to invest in innovative green technologies that continue to put Canada at the forefront of cutting-edge clean technology. This Canadian company is playing a part in advancing our global leadership in the clean tech market, helping the environment, while creating jobs and economic growth in our community.”
Hydrogen Optimized announced earlier this year it had moved its headquarters and technology and manufacturing centre into the former Tenneco automotive plant on Owen Sound’s east side. The company was looking for a centre for six to eight months when the former plant became available.
Stuart has said the location has many advantages, including equipment and utilities, space, and the ability to expand if necessary. He also highlighted the proximity to the Bruce County and Saugeen First Nation-led Bruce Innovates: Foundational Hydrogen Infrastructure Project, which aims to develop, test and scale-up hydrogen-based energy systems. Bruce Power and the Port Elgin-based Nuclear Innovation Institute have also put resources behind the development of a clean hydrogen economy in the area.
“I think there is a lot of opportunity here,” said Stuart. “We think this can be a special part of Ontario and Canada to advance hydrogen applications and technologies.”
Stuart said the Owen Sound facility has been wonderful, the landlords have been terrific and staff are enjoying it there. He said staff moved into the plant in early February and there have been some local hires, including some former Tenneco management.
They have about 20 full-time staff onsite, with about 10 summer students and co-op placements also joining them. In May they began bringing in their manufacturing and development and began setting up a demonstration system of their technology.
“We are all moving with a sense of urgency to demonstrate our technology here in Owen Sound and move it out to the marketplace as soon as we can,” he said.
As they move from development to commercial production they expect to ramp up the staff levels further, Stuart said.
“It is really great to be here, a wonderful community and the facility is first rate,” said Stuart. “Over time we hope to be filling it up with wonderful people from the region.”
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Owen Sound hydrogen tech company gets federal funding boost, Jun 08, 2021
