Hydrogen Optimized welcomes industry players to Owen Sound plant
The head of a green hydrogen system developer based in Owen Sound said the company has already grown into a local success story, but the work is continuing to turn it into a global one as well.
Denis Krude, president and CEO of Hydrogen Optimized, was at the company’s eastside development and manufacturing facility on Wednesday, where some big players in the development of the Canadian hydrogen industry were taking part in a discussion on green hydrogen’s role in reducing emissions, creating jobs and growing local economies.
Wednesday’s event, called Hydrogen in Action, included representatives from the Canadian Hydrogen Association and Hydrogen Ontario, as well as a panel of local officials, including Bruce-Grey-Owen Sound MP Alex Ruff, MPP Rick Byers and Owen Sound and District Chamber of Commerce President Diane Austin.
The event also served as the first stop in a cross-Canada “Getting Things Built” tour of companies by New Economy Canada, a non-partisan organization committed to driving Canada’s economic transition to a green economy. Hydrogen Optimized is one of over 60 members of the organization.
After establishing their development and manufacturing in the former Tenneco plant in 2021, Hydrogen Optimized has grown to about 100 employees working at its facilities in both Owen Sound and Collingwood.
Krude said during an interview following a tour that the company has so far benefitted from a skilled local workforce and close relationships with Ontario colleges and universities that have provided them with well-educated co-op students and interns.
And the facility in Owen Sound has not only served them well in terms of its location close to a skilled workforce, parts and materials, but has the space to scale up in the future.
Krude said the plant will reach about 500 megabytes of manufacturing capacity by the beginning of 2025, with additional floor space available to expand their operations to two gigabytes.
Krude, said :
I think the community can be proud of having a company like Hydrogen Optimized here,
“We really develop not only for Ontario and Canada, but for the world, a technology that is very much needed, and that will help to decarbonize the industry and also the societies globally.
I think this is something Owen Sound can be very, very proud of.
Hydrogen Optimized was founded in 2017 by former CEO and current executive chairman Andrew T.B. Stuart, whose family history in water electrolysis for clean hydrogen production dates back 120 years. Krude was brought onboard in April to build and grow the business, after spending six years as CEO of German green hydrogen technology manufacturer thyssenkrupp nucera – reputed to be the largest green hydrogen company in the world.
Through that work he has negotiated and contracted large hydrogen projects in the Middle East and Europe.
Krude said he didn’t intentionally come to Ontario, but found Hydrogen Optimized and came here mainly because he likes the technology.
He said,
What excites me about this technology is it is made for large-scale electrolysis,
“This is where I come from, but it is a very smart approach. It employs inexpensive materials, it is easy to scale, it is very robust and it is just smart and simple.”
Hydrogen optimized develops what it calls its RuggedCell high-power water electrolyzer in conjunction with strategic partner ABB’s large-scale rectifiers.
The technology is powered by low- and carbon-free sources including wind and solar energy, and creates hydrogen for industries such as steel making, chemical plants, ammonia plants and oil refineries.
The industries currently use large amounts of fossil fuels such as coal, oil and natural gas, and the goal is to convert them to green hydrogen in order to decarbonize their operations.
Krude said that so far they have received support for the build-up to manufacturing their systems. In 2021 it was announced the company had received $4.8 million from the Sustainable Development Technology Program, while in 2023 it received $500,000 in provincial funding. The company was also the recipient of a $3.5-million federal economic development loan last year.
But Krude said they will need further support for the commercialization of their RuggedCell electrolysis system.
Krude, said :
This requires some capital and support that will not only be borne by the company itself,
“If we want to develop such a jewel in the clean tech space, I think we also need some further government support in order to make this a global success.”
Krude said they are not only competing with other companies around the world, but other countries that are supporting their own national strategies on hydrogen development in the form of grants and support.
Krude said that if Canada is serious about fighting climate change, there is no way around using green hydrogen for the applications Hydrogen Optimized is developing their technology for.
On Wednesday, participants were given the opportunity to tour the plant and see the manufacturing process and its technology at work, including its demonstration electrolyzer.
Krude said all the technological building blocks of the full commercial plant are there now, which is proof of the concept. What is missing is the full-scale large commercial project, but they plan to get there.
Krude, said :
It is the nature of the business that this alignment of the different building blocks and the development of such a business take time,
“We are making very good progress, so we are quite confident that in the near future we can have commercial proof of our technology.”
Maike Althaus, executive director of Hydrogen Ontario, said the hydrogen industry currently has about 1,800 full-time employees in Ontario at about 300 companies. They think the industry can create up to 70,000 new jobs by 2030 under the right conditions.
Althaus said hydrogen is a big part of the solution for decarbonizing Ontario’s heavy industry, and Hydrogen Optimized has the potential to be a big part of that.
Althaus, said :
To me Hydrogen Optimized plays a huge role in helping heavy industry – steel, cement, chemical industry, refineries – to decarbonize,
“It is a prime example of how much these companies contribute to local value and job creation.”
Merran Smith, president of New Economy Canada, said they are trying to help raise the profile of the players in the new economy like hydrogen production and renewable electricity companies.
Smith said:
What we want to show is that there are jobs, there is investment coming in that is helping make economies thrive, and this is happening now,
“This is not a future idea, it is happening now here in Canada and it is poised to grow. We want Canadians to understand this is going to be good, bringing jobs, prosperity and economic security to communities across the country.”
Ruff said having Hydrogen Optimized located in the city shows the region can be part of the leading edge in the development of green-energy technology in the country. He said he has been fortunate to tour the facility three times and it is exciting to see the progress they are making.
Ruff, said :
Anything we can do to continue to bring back local domestic manufacturing not only in Canada, but in Ontario and in particular here in the Owen Sound and Grey-Bruce area is phenomenal,
“To see something like this come back and capitalize on the local skillsets we have I think is just a win-win for everybody.”
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Hydrogen Optimized welcomes industry players to Owen Sound plant, source
