This episode features Will Harney, the CEO of Hydrocool and a former Magna executive. After a career in automotive operations and R&D at Magna—playing a role in its 1987 Vehma Torrero concept car—he co-founded Hydrocool, a startup that’s building hydrogen-powered refrigeration units for transport trailers. Will shares his perspective on automotive R&D and on the possibility of a Canadian-owned car company, the exciting applications of hydrogen fuel cells, and why he thinks hydrogen could replace diesel sooner than you think.
Find Out More about Hydrocool and Other Mentioned Projects
Find Out More About Trillium
About the Making it in Ontario Podcast
Making it in Ontario is your window into what's next in manufacturing. Ontario’s economy depends on manufacturing, but the latest research reveals concerning trends that could undermine the sector’s strength—if we don’t address them. Join us as we talk to CEOs and other leaders at the forefront of the sector about productivity, strategy, talent markets and career opportunities, and the role of manufacturing in a prosperous and sustainable future.
This podcast is an initiative of the Trillium Network for Advanced Manufacturing. It is produced by Storied Places Media.
Welcome to Making it in Ontario, your window into what's next in
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:Ontario's manufacturing sector from the
data driven researchers at the Trillium
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:Network for Advanced Manufacturing.
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:I'm Michelle Samson.
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:Brendan Sweeney: And I'm Brendan Sweeney.
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:Michelle Samson: Okay, Brendan, we have
got a, we say this every time, but we've
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:got a really interesting guest this week.
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:Who do we have up today?
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:Brendan Sweeney: We have Will Harney, who
is the CEO and Co-founder of Hydrocoolol.
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:So Hydrocoolol, that's
what he's doing now.
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:In a past life he was Magna executive.
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:He played a lead role in Magna's
R&D operations in Canada and beyond,
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:and I got to know him and Trillium
got to know him when we worked on
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:a project a while back with NGen,
Porsche Consulting and the APMA.
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:This is 2021, 2022.
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:Links in the show notes.
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:Michelle Samson: So we're gonna
be drawing from both hats.
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:He's got all this knowledge from
all of these different areas.
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:So we start this interview with
some insights into the automotive
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:industry in Canada and really
particularly automotive R&D,
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:Brendan Sweeney: Yeah, and we talk a bit
about the possibility of a Canadian owned
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:car company or vehicle manufacturer.
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:We also talk about Will's role many moons
ago in developing the Vehma Torrero,
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:which was Magna's well ahead of its time
:
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:Again, links in the show notes.
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:Look at this thing and to
think that it was made in:
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:that's almost unthinkable.
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:It was way ahead of its time and
a really interesting and exciting
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:display of Magna's capabilities at
the time, as Magna was ascending.
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:Michelle Samson: Mm-hmm.
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:I'd never heard of that project.
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:And yeah, when you flipped me
the image, I was truly surprised.
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:Like it does not look like a
car that was designed in:
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:It could roll out today and
wouldn't look so outta place.
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:So, really wild that Magna was doing that.
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:Obviously, we're also going to
talk to Will about hydrogen, which
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:I just found really fascinating.
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:He's moved on from Magna into his own
company, which is called Hydrocool.
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:Brendan Sweeney: Hydrocool is
itself a pretty cool company.
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:They do a lot of work at Ontario
Tech University in Durham Region.
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:Will is really insistent in us telling
this story not just about Hydrocool,
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:but about this really well developed
hydrogen ecosystem that exists in Ontario.
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:Next Hydrogen, Accelera, and Hydrogen
Optimized are all producing electrolyzers.
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:There are a number of hydrogen fueling
stations that are either online or
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:coming online, including Carlsun's at
Pearson Airport, and Enbridge behind
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:the fence, quote unquote, behind the
fence facility in Markham, and at ITD at
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:Innovative Trailer Design in Etobicoke.
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:Atura Power's Niagara Hydrogen Center
is scheduled to come online next year.
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:And Elemental Trucks, maybe a target
for this podcast, is developing hydrogen
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:fuel cell powered vehicles in Ontario.
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:And all this is supported by
the Government of Ontario's
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:Hydrogen Innovation Fund,
which was recently re-upped.
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:Michelle Samson: Yeah.
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:Will successfully convinced me
that hydrogen, is gonna be huge.
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:It has so many benefits and applications.
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:This is gonna be a great opportunity
to learn more about hydrogen, about
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:Hydrocool, and about the automotive
industry right here in Ontario.
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:Brendan Sweeney: Mm-hmm.
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:From a really interesting character,
and we're glad we got him on.
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:Michelle Samson: Will Harney.
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:Right here on Making it in Ontario.
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:Brendan Sweeney: Will, hope you
had a great Victoria Day weekend.
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:Nice to have you.
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:Will Harney: Thanks for having me.
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:And, And yeah, we did have a fantastic
Victoria Day holiday weekend, sailing and
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:enjoying all that Ontario has to offer.
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:A little bit of rest, hopefully
enough for this, interview.
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:Really excited to talk
about Making it in Ontario.
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:Brendan Sweeney: We're gonna talk
about Hydrocool, your new company.
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:We're gonna talk about,
hydrogen and that industry.
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:But give us a bit of
background about yourself.
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:We came to know each other working
on a project together a few years
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:ago, and you have some experience in
the automotive industry in Ontario.
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:So, as much as you want to tell
us about that, tell us about it.
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:Will Harney: Yeah, for sure.
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:Yeah, so I studied mechanical
engineering technology at Ryerson, and
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:my dream was always to get involved
in designing and building cars.
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:So I was super fortunate to get to work
at Magna International pretty early in
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:my career at a time when Magna was really
going through an incredible growth.
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:Frank Stronach had brought together
a really, really strong team.
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:A lot of engineers and leaders, operators
from Europe, and that really provided
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:a number of ingredients that allowed
for entrepreneurship, and frankly, a
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:little bit of audacity that made Magna
an extremely exciting place to work in
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:the eighties and nineties and beyond.
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:That was how I started.
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:And ended up working in R&D after working
in a number of operating divisions.
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:But my passion was always
product development.
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:And research and development.
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:Along the way to working in setting up
the Magna R&D facility up in Aurora,
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:Ontario, I was fortunate to work in
a company called Vehma, which was a
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:company that Manfred Gingl, president
at the time, had set up to develop
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:vehicle technology, and it was based in
Ontario with an incredible crew, talent
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:from Steyr-Daimler-Puch in Austria.
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:These are teams of engineers
who had designed and built cars,
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:including the beloved, G-Wagen.
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:In that timeframe, Magna was pursuing
full vehicle development programs, and
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:I was the new guy, so I got what was
originally thought to be a bit of an
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:ugly Betty program and it was a fully
homologated battery electric vehicle
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:developed for the Electric Power Research
Institute in Palo Alto, California.
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:So, interesting ride developing
Magna was a manufacturer of record.
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:we built almost 200 vehicles
distributed throughout North America.
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:So a really great opportunity
to learn about EV tech and
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:vehicle development back then.
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:So Magna was full of those
kinds of opportunities.
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:I spent time working in the US in
the seating R&D area for Magna.
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:So I got a really good chance to
work in Detroit, so super fun.
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:So yeah, Magna gave me enormous
opportunities to learn and to
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:meet a ton of great people and
work in operations and R&D.
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:Brendan Sweeney: We forget sometimes
that Magna, well, one, they do make cars
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:in Graz, Austria for other customers.
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:They did have interest, however many years
ago in making a car from tip to tail.
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:And were you involved in,
there's a car that's still on
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:display in Brampton, right?
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:Will Harney: There sure is a car
that's still on display in Brampton.
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:Brendan Sweeney: And what's
the name of that car?
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:Will Harney: Torrero.
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:Brendan Sweeney: Yeah, yeah,
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:Will Harney: Yeah.
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:Back to Fred again.
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:Fred Gingl was, still is,
an incredible visionary.
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:He really could see the potential for
Magna developing and building vehicles.
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:Like, we're talking about Magna
:
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:So Torrero was really a great example
of Fred's vision and leadership,
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:and it really got people stoked.
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:It was a super exciting program
and it provided a sense that
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:everything is possible if you are
prepared to do the hard work and
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:bring the right people together.
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:Brendan Sweeney: I'm gonna see if
I can actually pop this in the chat
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:for Michelle because for 1987, this
is a pretty futuristic looking, like
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:this vehicle was ahead of its time.
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:Yeah.
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:Michelle Samson: This is
not what I was expecting.
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:Will Harney: It was
pretty, pretty incredible.
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:And so that's the team that was brought to
Magna from Steyr-Daimler-Puch, originally
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:to go after a Canadian military vehicle
contract competing against Bombardier
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:and whatnot Those guys stuck around
and led to the kernel of what became an
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:incredibly powerful story within Magna.
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:Vehma still lives to this
day, it's in Michigan.
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:They build cars and design cars.
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:But magna acquired Steyr in 1996.
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:And then, yeah, to your point, became a
vehicle builder, a contract manufacturer.
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:And Don, Don Walker, led the company's
growth through that phase of time until
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:he retired just a little while ago.
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:Knew the value of having access
to full vehicle technology.
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:It gave Magna engineers and operators
a sense of what good looks like and
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:what the whole thing looks like,
which is really a rare, rare skillset.
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:Don was pretty clear that we should
never necessarily put the Magna name on a
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:vehicle but Magna inside sure made sense.
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:And, yeah, really exciting
company to work for.
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:Brendan Sweeney: Mm-hmm.
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:With all the Project Arrow going on
now and all the talk, and I think right
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:now it is just talk, about, well, maybe
we should have a Canadian car company.
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:Will Harney: Right.
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:Brendan Sweeney: Probably
easier said than done.
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:What lessons from doing that
work with Magna from the Torrero
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:could we pull out of this?
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:Compare and contrast what Magna was trying
to do with the Torrero in:
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:what's happening with Project Arrow today.
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:Will Harney: Super interesting idea to
compare and contrast 'cause I think what
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:Magna ended up doing was acquiring a
company that was a tiny, perfect Austrian
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:OEM that built under their own name, but
also built in a contract manufacturer
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:for Mercedes and Saab and whoever
else they could find as a customer.
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:So having the capability to build a car,
that's something I believe is absolutely
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:in the Canadian automotive DNA, like
in the supply chain and expat OEM
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:assets that are interested in doing so.
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:So our ability to build a
car in Canada, absolutely.
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:Our ability to stand up a
brand, bit more of a challenge.
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:To do an end-to-end development
from ground up is a multi tens of
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:billions of dollars proposal, right?
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:Steyr in Austria was started
by being given old tooling from
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:a I think a Fiat, post-war.
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:Same as Toyota got GM tooling post-war.
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:Volvo, same thing.
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:You need to have a huge headstart.
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:You need to have a huge headstart
of body engineering, stamping dies.
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:Like just to build a body shop and
have the tooling is a, a big deal.
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:It's tens of billions of dollars.
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:So probably not something you could
jump on in isolation without having a
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:partnership with an OEM that would share
product knowledge, frankly, and tooling.
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:I think there's a different path, and I
think this is something that we can get
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:to a bit later when we talk a bit more
about Hydrocool, but there seems to be
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:an opportunity, I believe, not to go
after a passenger car or a light truck,
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:which is a $30 billion proposition to
stand up, but maybe take a different
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:look at building capacity in a more
possible way, which is to go after
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:the medium/heavy duty truck business.
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:I mean, that's a different kind of animal.
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:It's important from an
economic perspective.
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:We use extensively in Canada medium/heavy
and heavy duty trucks to move food,
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:move goods, coast to coast to coast.
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:So we're a big, big consumer
and not really a producer.
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:You have examples of us being, you
know, pretty good at building heavy
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:duty complex vehicles like that.
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:If you look at New Flyer Industries
in Manitoba, we're a significantly
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:important manufacturer of urban transit
buses in Canada, and then beyond.
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:We have plants around North America.
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:If you take that model, it's complicated,
there's a lot of value in it, so it's
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:great for jobs and prosperity, but
it's got a really, really low bar
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:relative to regulatory restrictions.
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:And I think that's the difference,
is if you look at medium/heavy truck,
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:there are standards for sure, but
nowhere near the standards that are
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:required for passenger vehicles.
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:And that's the distinction.
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:So I believe there's a way to a vehicle
production Canadian OEM for sure.
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:But don't start with a passenger car.
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:Don't jump into the most fiercely
competitive complex product,
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:you know, on the road today.
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:Brendan Sweeney: That's also an oligopoly.
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:Will Harney: Exactly.
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:Brendan Sweeney: And I guess,
yeah, I was having a conversation
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:with someone this morning about
do we have a Canadian OEM or not?
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:And I guess New Flyer Industries
would be our Canadian vehicle
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:OEM, on-road vehicle OEM.
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:Although most of the transit buses
are made in the United States, but the
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:coach buses are made in Winnipeg because
they bought Motor Coach Industries.
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:Will Harney: Right.
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:Brendan Sweeney: Nova Bus, which
is a Volvo division in Montreal,
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:is making almost exclusively
for the Canadian market now.
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:Will Harney: Mm-hmm.
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:Brendan Sweeney: And Prevost is making
coach buses, which is also a Volvo Group,
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:not Volvo Cars but Volvo Group, is a
Swedish company, not a Chinese company,
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:is making buses for Canada and the United
States, and Prevost makes the bus shells
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:that they ship to a company in Tennessee
who then makes super high security
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:buses that Taylor Swift would use on her
tour or that there's Ground Force One,
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:there's a bus that the president rolls
around in that has a Canadian made shell.
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:Will Harney: Was that a
gift or was that acquired?
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:Brendan Sweeney: I think it was
acquired and maybe it was, maybe
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:it was a gift from the company in
Tennessee that made the bus, but
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:they paid for the shell from Canada.
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:Will Harney: As far as the number of
vehicle manufacturers, even in off-road
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:equipment and so on, that get rolled
up into large multinationals like
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:Volvo Truck, which is a spectacular
organization, Prevost Car, it's a half
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:a million dollars to get the bus shell.
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:Then off it goes to get turned into
a Taylor Swift Ground Force Two
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:or whatever, multimillion dollar
industry, to do the upfitting.
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:There's a lot of value
added in those vehicles.
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:There really is a lot of value added
and although the numbers aren't big,
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:like even in heavy duty trucking or
medium duty trucking, it's tens of
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:thousands of units maybe just over a
hundred thousand units in North America.
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:They're expensive.
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:And If you look at alt tech,
like the dearly departed Nikola
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:Motors fuel cell Class 8 tractor.
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:They were apparently in the market at, at
approximately, $650,000 Canadian per copy.
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:And that was a bit low.
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:So now the next guys that are coming
in to fill in the vacuum will be
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:Hyundai, which is they build a great
fuel cell powered Class 8 truck.
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:It's gonna really move in
quickly to take over the market.
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:'cause there's no one
currently in that space.
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:And they'll do well.
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:But in Ontario we have Elemental Truck.
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:Elemental is trying to stand up a fuel
cell based Class 8 truck in Ontario.
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:Right?
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:And they're smart.
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:Like Jamie Ally, the CEO
and founder is smart.
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:He's going after an industry he knows the
degree of difficulty from a regulatory
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:perspective is manageable relative to body
chassis and sort of the truck components.
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:Also supported by a very, very
well-established supply chain around
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:the world that can give you all the
bits for it, generally speaking,
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:and he's using fuel cell technology.
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:Which, again, we have a fair
bit of in Canada, like, we're
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:we're pioneers in a sense.
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:And of course they have a motor
that drives an axle and so on.
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:So interestingly, I think that's
an interesting idea that you can go
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:after a different kind of segment,
go after medium and heavy duty, like
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:the New Flyer Industries success
story, with alt fuel in the bus world.
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:Like they're early adopters of
CNG, hydrogen, battery electric.
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:That's New Flyer, they made
their mark through going after
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:non-conventional powertrain applications.
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:We can do it too.
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:The biggest barrier to entry to anyone
starting a car company or any country
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:starting a car company is powertrain.
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:I mean, a powertrain has a product
lifecycle, of two to three,
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:possibly four, in the case of the
small block Chevy V8 probably like
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:10 vehicle program lifecycles.
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:It's a multi-decade investment, like
the Ford Eco Boost system and so on.
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:Like it's tens of billions of dollars.
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:A long time.
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:Then you have to have a transmission
to connect it to, and then you have
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:to have all the other powertrain bits.
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:It's a super expensive
and complex process.
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:So how do we build a car or a medium or
heavy duty truck story in Canada with a
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:Canadian brand, an OEM where you can hang
on to all the talent and hang on to all
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:the income that'll flow from having an
actual corporate leadership team based in
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:Canada, 'cause that's where ultimately the
money comes from, for taxation anyways?
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:You need to have a powertrain.
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:But, there was an article recently,
in the Trucking News, which I read
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:with great interest these days, a
company called Fontaine Modification,
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:it's a great company in the Carolinas
that does a lot of upfitting of
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:large trucks for many customers.
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:Just announced a program where
they're building a medium duty truck
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:using a Ballard fuel cell engine,
which apparently works pretty well.
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:It's connected electrically
to a Linamar eAxle.
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:So now you have two Canadian
companies who essentially provide
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:the powertrain, which is the barrier
to entry that's existed, since auto
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:developed the auto cycle, right?
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:So it's a whole new day.
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:You have a chance to move into a new
segment with a transportation fuel,
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:hydrogen, and it changes the game.
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:So now, you can have a hydrogen
powered truck or a hydrogen
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:powered light truck in the future.
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:Or hydrogen powered passenger cars
in the future, if it makes sense.
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:But you can start right now 'cause you
have the technology in Canada, based
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:in Canadian automotive supply chain.
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:With companies like Linamar who have
an eAxle that's wholly capable of
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:driving a truck or a pickup truck.
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:All they need is electricity.
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:Oh, they happen to have battery
modules with which Linamar
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:develops and produces today.
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:They've also developed a flex form which
is a super innovative and clever high
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:pressure hydrogen storage tank solution,
which can be bolted into the same vehicle.
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:So, and then you just go across the
Rockies, go to Ballard, pick up a fuel
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:cell engine, or Unilia or the other
fuel cell developers in BC and you
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:have a solution to power a vehicle.
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:That's the gateway opportunity.
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:Brendan Sweeney: So, just backing up in
the conversation, opening a black box for
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:us around R&D and automotive R&D, and for
the past 10 or 15 years, since we started
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:producing fewer vehicles in Canada, we
were at 3 million, then we were at 2.5
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:million, then at 2 million, 1.5
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:million.
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:There's been more and more talk about,
okay, well let's try to do more R&D.
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:It's an interesting proposition
because we're trying to say, well,
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:this industry's getting smaller.
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:Let's try to do more of the thing
that tends to accompany it when
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:we're doing a lot more of it anyway.
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:Tell us a bit about your life in R&D.
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:What do you actually do?
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:Why is it valuable and why is it
important to be doing automotive R&D
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:Ontario if we want to be building more
cars or making more parts in Ontario?
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:Will Harney: That's a couple interviews.
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:Brendan Sweeney: Yeah.
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:Will Harney: But we will try and
take a stab at a chunk of it right?.
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:So R and D, right?
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:So research and development.
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:Some people call it research
and innovation, like Ford Motor
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:Company, their thing's called
RNI, Research and Innovation.
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:I think, going back to Magna, Don
Walker once said, probably more than
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:once, research is the conversion of
money into knowledge and you want,
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:some more money to generate more
knowledge through your research efforts.
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:And he goes, well, the good
news is that innovation is the
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:conversion of knowledge into money.
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:So as long as you're prepared to
do both and live with a project
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:or live with the concepts from
conceptualization straight to launch,
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:you got something to talk about.
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:But you need to have both and you need
to a clear grasp of what areas you
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:should be researching and that's where
the, going back to the idea of having
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:Terrero, like something that gets
in front of an audience that you can
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:learn about functional gaps, talk to
consumer, understand why a minivan in
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:1986, although working quite nicely not
necessarily what everyone wants to drive.
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:And maybe there's this idea of a
different type of vehicle that has
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:utility and beauty performance, so
that's a product innovation idea.
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:So then how do you develop
technology to support doing that?
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:And that's really been the
story of the automotive research
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:and development industry.
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:I mean in Europe and North
America and Asia as well.
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:Clearly over the last number of decades.
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:It's really trying I think, when we
talked to Toyota Canada, to Scott on
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:one of your previous podcasts, he talks
about the number of vehicle segments that
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:they have, within Toyota globally and
built within Ontario for that matter,
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:and he said, at one point he corrected
himself and he mentioned like car.
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:He said, not really car, it's really SUV.
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:Like, we're really an SUV company.
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:And that's really where the ball's
gone the last number of decades.
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:And I think he touched on comments
around productivity and why ostensibly
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:we're selling more stuff, there's
more GDP, but fewer folks driving
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:rivets into cars or what have you.
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:Well, It's 'cause there's far more
product in the unit, like there's just
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:that much more density of stuff, right?
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:And so, and they have to be lighter,
they have to do more things.
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:And that's where the
product research comes in.
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:And so trying to densify and through
integration and functional integration,
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:that's what the research piece is.
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:And once you get the aha moment, you
can capture it and then validate it
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:through experimental development.
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:Get some patents around it,
which is always a good idea.
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:You can sell it.
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:And the innovation piece
is taking it into market.
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:The point is you need to
have a problem to solve.
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:And it's very difficult to identify
a problem to solve as a researcher
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:if you don't have clear insight into
consumer behavior needs and wants.
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:That's something we, I think when we first
met, we talked about what we could do in
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:Canada for the automotive supply chain,
the value chain, and my position always
381
:was it's the consumer first, you have to
have a consumer-centric innovation policy.
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:You have to have a consumer-centric
industrialization policy.
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:If you don't, what are you building?
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:Right?
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:And it's like, Dennis DesRosiers says, oh,
say it's like product, product, product,
386
:kinda like the rip off of the real estate
agent's location, location, location.
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:Dennis would say it's
product, product, product.
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:If you don't have product,
you have nothing to research,
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:you have nothing to build.
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:And you need to get that insight.
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:and that's why you need to have
access to consumer knowledge.
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:Have to have access to problems to solve.
393
:Brendan Sweeney: So, why don't we tell
the world our origin story, which is
394
:probably about four years ago today.
395
:Like, maybe not today, today, but
it was about, it would've been April
396
:or May of 2021 that we embarked
on a bit of a journey together.
397
:Will Harney: Yeah, we did.
398
:Brendan Sweeney: Yeah.
399
:And it was a, it was an interesting
journey and it led somehow to
400
:Hydrocool, so let's talk about it..
401
:Will Harney: Yeah, so I think when
we met, I'd been doing some work
402
:with John Laughlin at the NGen.
403
:I think it was a super cluster back then.
404
:Brendan Sweeney: It's still super.
405
:Will Harney: It's still super.
406
:Brendan Sweeney: Yeah.
407
:Will Harney: It's very super, yeah.
408
:So John, who I think sort of had
recently jumped into the fray to
409
:be the chief technology officer
at the NGen, working for Jay.
410
:ISED, Industry Canada, had decided to
take a look at all this movement happening
411
:in electrification, you know, Model 3
had been launched, Model Y was coming.
412
:It was like a lot of stuff was
happening relative to electrification.
413
:The question was, what does Canada do?
414
:And what's gonna happen to the Canadian
automotive supply chain or the value
415
:chain in the face of that electrification?
416
:John brought together a really interesting
team of folks to work on that project.
417
:Trillium, yours truly, we had Warren
Ali from the APMA on every call, I
418
:believe, providing that voice and
fresh off the back of scrambling
419
:together the Arrow project, he had a
really good grasp of the supply chain.
420
:Good, good network.
421
:And then Porsche Engineering.
422
:And Porsche Engineering was in the
project 'cause they'd recently gone
423
:through a really interesting project
to try and get Volkswagen outta
424
:the penalty box for the Dieselgate.
425
:And they essentially retooled their entire
product line and their entire supply chain
426
:globally to pivot Audi group to electric
so they had some fresh, fresh knowledge.
427
:And yeah, that was a really great project.
428
:Yeah.
429
:We talked a lot about where you
should look first and I think we had
430
:a lot of discussion around consumer
centric product focus versus sort of
431
:material centric and mining focus.
432
:And, in the end, think the report
did a good job of balancing
433
:a lot of different interests.
434
:But yeah, that's what we started.That
435
:was it.
436
:Brendan Sweeney: Mm-hmm.
437
:Will Harney: Met some great people, got
some great insights, and because ISED
438
:had decided to lean into understanding
this challenge, a lot came out of it.
439
:Then, I think the legacy of
that is a number of investments
440
:in gigaplants for batteries.
441
:Definitely greater focus on trying
to get to the Ring of Fire, and start
442
:working on a critical mineral strategy.
443
:Then it's a little small piece of
it, which is to do with the product
444
:and why should you pursue critical
minerals in the first place?
445
:Well, because people need to be mobile
and they do it through a number of
446
:different ways, and personal transport
is still a big, big chunk of that, right?
447
:So I think I'd like to see the chapter
two of that rolling forward now.
448
:And I think that's the opportunity
we have today because of the climate,
449
:because of a focus on our resilience
and our independence in terms of
450
:these key commodities like vehicles.
451
:Yeah, there's a big opportunity for that.
452
:So, the link to hydrogen was the project,
the NGen project, where we identified
453
:that in terms of electrification versus
liquid fuels, diesel and gasoline and
454
:natural gas, compressed natural gas, that
hydrogen would be a:
455
:for passenger cars and light trucks.
456
:I took away, amongst many things from
the report, but I took away the question,
457
:so why do you have to wait till 2037
for hydrogen to make it into mobility?
458
:This didn't seem right when it's
such a great energy transport medium.
459
:I started brainstorming with my
co-founder, Pierre-Xavier Roy, who
460
:worked with at Magna, he worked in
automotive for also a number of years.
461
:Worked also for Faurecia,
or Forvia now, in France.
462
:And, so between the two of us, we
had a pretty good grasp of product
463
:development and we attacked that problem.
464
:The question was, how can you get
hydrogen into mobility before:
465
:And we stumbled upon an application
to get hydrogen into mobile
466
:refrigeration, which is essentially
the way that food and pharmaceuticals
467
:are moved around the planet on land.
468
:And that's in large
trailers, like semi-trailers.
469
:And today, and back in 2022
when we started working at it
470
:in earnest, almost all, 99.9%,
471
:of all those trailers are
powered by diesel engines.
472
:Little 2.1
473
:liter, four cylinder diesel engines that
evolved from:
474
:In fact, one of the biggest
suppliers of diesel engines into
475
:the refrigerator transport business
is a company called Yanmar.
476
:Yanmar is a fantastic
Japanese small engine company.
477
:Mar for marine, they're
involved in marine and whatnot.
478
:In fact, I've got a Yanmar in my sailboat.
479
:Great engine.
480
:But the Yanmar origin story, which
is, I'll keep it as short as possible.
481
:So after World War II, along with various
countries getting tooling from countries
482
:to build cars, Yanmar got the blueprints,
patterns, and all machine tools to
483
:build a two cylinder diesel engine.
484
:It was designed for D-Day landing craft,
so it was a horizontally not opposed
485
:two cylinder, super low to allow the
landing craft floor to be low, to
486
:allow for our troops to get safely
onto the beach as quickly as possible.
487
:That whole kit and caboodle was sent
to Japan to help re-industrialize
488
:Japan after the Second World War.
489
:And Japan being Japan said, oh
two cylinder diesel, way too big.
490
:So they cut it in half and
made a single cylinder diesel.
491
:That engine was built until
the nineties for like boats
492
:and whatnot, or small tractors.
493
:That's how Yanmar started.
494
:I remember taking mine apart and
there's a little mechanical fuel
495
:injection pump that makes it work.
496
:Genius, simple.
497
:Developed in England in 1936 in Coventry.
498
:It's essentially what's in a refrigerator
trailer today, just four cylinder.
499
:Same thing.
500
:Mechanical fuel injection, no
regulation, no emissions control,
501
:no real efficiency control.
502
:And they're everywhere.
503
:So they're little mini emitters, they're
below regulation, there's no EPA or
504
:environment candidate regulation.
505
:So they dump out 30 metric tons
a year of CO2 per trailer, and
506
:there are a million trailers in
North America, so figure it out.
507
:And they're also, they dump tons of pm 2.5
508
:fine particular emissions.
509
:NOx and SOx are not regulated.
510
:And the trailers are autonomously fueled.
511
:They have their own fuel up
to 400 liters or 420 liters
512
:of diesel per trailer, right.
513
:And so it's obviously a ton of energy
required and the question is why?
514
:It's because they run by themselves for
days on end nowhere near a semi tractor.
515
:So they get dropped off at a
depot or distribution center
516
:and they run for literally days.
517
:So they're huge power consumers or energy
consumers, low power energy consumers.
518
:That's how we started it.
519
:That was the moment was, it was like,
wow, this is a way better solution
520
:if we can use hydrogen than diesel.
521
:Brendan Sweeney: So hydrogen, for
those who are not in the know, tell
522
:us in a nutshell how this works,
why it's valuable, how it's not just
523
:a clean tech, but it can translate
into profits, jobs, prosperity.
524
:And generally, we know Toyota is keen
on hydrogen and on fuel cell vehicles.
525
:Other companies are less keen.
526
:Why isn't hydrogen everywhere?
527
:Will Harney: Well, it will be, it
just it's not everywhere right now.
528
:and I think the reason it's
important, it hydrogen, is that it
529
:does a number of things for a number
of people, it's a crowd pleaser.
530
:And so utilities like in
Ontario love hydrogen.
531
:'Cause you can use it to store energy.
532
:It's a great energy storage solution.
533
:So it can manage what in the utility
world is called intermittency.
534
:So especially when you look at renewables,
wind power, solar power, when you have
535
:intermittency, just because of time
of day or weather conditions trying to
536
:have this sort of mind of its own power
generation solution and trying to match it
537
:to a regular daily cycle of peak demands.
538
:In the context of nuclear power
plants, and thermal power plants,
539
:the ones that are left, they're
looking to supply the base load.
540
:So hydrogen's a great
solution for utilities.
541
:That's why the Ontario government had the
vision to launch the Hydrogen Innovation
542
:Fund in 2023, I believe, that spent
money on establishing hydrogen capability
543
:within Ontario's power generation world
and gave Atura, one of the OPG kind of
544
:suppliers, if you will, a chance to build
a hydrogen I'll use the word production
545
:facility loosely but an electrolyzing
solution in Niagara taking clean surplus
546
:Niagara electric power and flipping
it into hydrogen for use in Ontario.
547
:And that'll come online in 2026,
with between five and 8,000
548
:kilograms per day capacity of fuel
cell grade hydrogen, which is key
549
:to support mobility applications.
550
:So Hydrogen is great for utilities.
551
:It's also really, really good if
you have an area that has limited
552
:access to the electricity grid.
553
:If you live in a city, you have access
to significant amounts of electricity
554
:as much as you need, pretty well.
555
:And I think you touched on that with
your discussion with Toyota or regarding
556
:EV charging, you mentioned the idea
of digging out snowbanks to try and
557
:find a spot to park and the difficulty
of getting connected to a charger.
558
:Well, that's a problem that
can be solved with hydrogen.
559
:Hydrogen's super portable.
560
:You can store a lot of it on
a car or a truck, so you don't
561
:need to charge it as often.
562
:And if you do charge it or
fill it, it fills fast, like
563
:in minutes, like liquid fuel.
564
:It's really good for electricity deserts.
565
:Ports for instance, which are trapped
with cities that are growing up around
566
:them, they can't run new electric
power transmission into the Port
567
:of Los Angeles through Palo Verde.
568
:People will get upset.
569
:So ports are basically
electric energy deserts.
570
:And so are virtually every truck
stop on every interstate or every 400
571
:series highway or major highway in
North America and around the world.
572
:So if you want to electrify
transportation, it's a good idea
573
:if you have access to electricity,
it's a terrible idea if you
574
:don't have access to electricity.
575
:Hydrogen solves that problem
'cause it's portable and has
576
:super high energy density.
577
:So that's why it's being looked at so
extensively for heavy duty transport.
578
:So back to what we're doing.
579
:We're not trying to power a,
like Elemental is trying to
580
:power a Class 8 semi tractor,
hundreds of kilowatts of power.
581
:Little transport refrigeration units or
reefers need around 20 kilowatts of power.
582
:It's like relatively low power, but
high energy 'Cause it runs all the time.
583
:So for us, the challenge was
how do we convert to hydrogen.
584
:Well, you need hydrogen first of all.
585
:So you have to have a tank to store
pressurized hydrogen, which we're
586
:fortunate to have access to, 'cause
there's many, many companies around
587
:the world, including Linamar as I
mentioned earlier, who build high
588
:pressure hydrogen storage tanks.
589
:So, do other auto
suppliers like OPmobility.
590
:So it's a thing within the,
in the auto supply sector.
591
:Magna built and can build liquid
hydrogen fuel tanks, they've done
592
:it for BMW and other customers.
593
:So the supply chain has none
of these building blocks.
594
:Like hydrogen storage.
595
:Once you have the storage onboard the
vehicle, in this case a trailer you
596
:don't need very much like, seven or eight
kilograms is enough to run for over a day.
597
:Then you have to convert
it to something useful.
598
:And that's where the fuel cell comes in.
599
:So the fuel cell converts hydrogen
with air into electricity, and
600
:heat at about 50% efficient.
601
:Versus a diesel engine, which converts
fuel and air into power and heat
602
:but at around 25 to 26% efficiency.
603
:So fundamentally it's a more
efficient energy conversion process.
604
:And now you have electricity, which
is great 'cause if you design a
605
:refrigeration system that's natively
electric, it's gonna have all the
606
:benefits of electrification, efficient,
reliable, durable, et cetera.
607
:So I mean, it is really an electrification
play, but you're sort of using a
608
:battery to do the heavy lifting
on energy storage using hydrogen.
609
:Michelle Samson: I don't know how
brief you can be on this, but I'm
610
:just really curious about your
vision for the future of hydrogen.
611
:Like how widespread do you think
it will be, or could be or, what's
612
:standing in the way and what do you
think needs to be done to be able
613
:to roll it out to more applications?
614
:Will Harney: Yeah, I think what needs
to be done is to do the work to support
615
:hydrogen's development, in terms of
how can you make it like in Ontario.
616
:Ontario government with the
Hydrogen Innovation Fund too
617
:is doing a great job with that.
618
:They're also spending, bringing
I think $15 million to the
619
:table to develop applications.
620
:So you have to have both, you have
to have production or hydrogen
621
:conversion to have some way to
have an offtake or an application.
622
:The vision is that you're gonna
start in cities, large centers.
623
:So looking at Toronto, Greater
Toronto area, the Golden Horseshoe
624
:is a huge transportation hub.
625
:Canadians buy 50% more refrigerated
trailers than they would normally based
626
:on a 10 to one market ratio with the US
'cause we have great distances to travel.
627
:We have a lot of food to move.
628
:So it's gonna start in these
hubs like around the airport.
629
:The first commercial station for
hydrogen refueling in Ontario is
630
:at the Greater Toronto Airport
Authority, right on Conveyor Drive.
631
:So you can go fill up a vehicle there now.
632
:ITD Nikola down in Etobicoke
has a fueling station as well.
633
:So it's starting, it takes one and based
on one refueling point you can then have
634
:a hub and spoke solution where you start
pushing it out into different extremities.
635
:The other thing about hydrogen and
Hydrocool so we're a hydrogen powered
636
:refrigeration system for trailers.
637
:Fortunately the biggest single vehicle
type on the planet that is hydrogen
638
:powered is the humble forklift.
639
:So there are over 70,000 hydrogen
fuel cell powered forklifts running
640
:around indoors at warehouses throughout
America and some in Canada with leading
641
:companies like Canadian Tire that are
running hydrogen powered forklifts.
642
:So those, the Walmarts, the Amazons,
the Wegmans, or Martin Brower in
643
:their operations in Chicago that have
hydrogen in their distribution centers,
644
:in their warehouses, can fuel hydrogen
vehicles 'cause they have their little
645
:mini infrastructure play, if you will.
646
:Right?
647
:So that's how it starts, and it's
gonna go from there into En Routes
648
:or truck stops, cardlocks throughout
Ontario 401 corridor, 400 corridor,
649
:and keep on expanding that way.
650
:That's they way it's building
today, and that's what's
651
:happening in the US big time.
652
:As I mentioned, Hyundai's coming
into the market with a great
653
:product, the Class 8 truck.
654
:They're buying shares and infrastructure
companies to be able to support ahead of
655
:themselves the distribution of hydrogen.
656
:Companies like OneH2 are doing it today.
657
:So there's, it's already happening.
658
:It's just not on the
radar for some reason.
659
:It's not visible to
folks, but it's coming.
660
:And I think supporting companies like
Hydrocool that will provide meaningful
661
:offtake, provide a domestic capacity ffor
a crucial technology, which is the way to
662
:refrigerate food and pharmaceuticals and
transport, or companies like Elemental
663
:Truck, for instance, that are trying
to do the same thing for mobility.
664
:That's how it's gonna start.
665
:That's where it's gonna grow.
666
:: Brendan Sweeney: So Will, Hydrocool,
there's a production focus,
667
:but it has a foundation in R&D.
668
:Tell us a bit more about that.
669
:Will Harney: Absolutely.
670
:So as we went to look more deeply into the
mobile refrigeration market, so they're
671
:called transport refrigeration units,
the things that bolt onto a trailer.
672
:In the vernacular throughout in North
America, they're called reefers.
673
:So, as we started looking at reefers
more closely, we realized it wasn't just
674
:simply a huge upside to bring hydrogen
into powering them and converting to
675
:be fully electric, so electrification
play with hydrogen as the energy
676
:storage device, there were huge, huge
opportunities to combine the requirements.
677
:So one thing we learned and we learned
so much from our advisors, we're
678
:super fortunate to have guys like
Bob Richardson, who founded GS Group,
679
:who's an advisor and a shareholder.
680
:So we have a good network of advisors that
have really helped school us in transport
681
:and refrigerated transport specifically.
682
:But one of the challenges that the
industry faces is that anywhere in North
683
:America, above the 46th parallel kind of
thing, there's about three or four months
684
:of the year where almost everything that's
shipped has to be protected from freezing.
685
:So they're actually running as heaters
for like three or four months of the year.
686
:And that's for every fresh fruit,
vegetable, most proteins, anything
687
:pharmaceutical, including liquids that
are shipped by Canadian Tire to stores.
688
:So they have to be protected from freezer.
689
:So they actually run as heaters
for a big chunk of the time.
690
:And it became clear to Pierre-Xavier
and I that the synergy between the fuel
691
:cell and this heating function would
be enormously valuable from a overall
692
:total cost of operation perspective.
693
:So there were a number of
layers of innovation came
694
:through the research process.
695
:And and we have applied for a
patent in:
696
:issued a couple months ago so
we're super stoked to have patent.
697
:The other piece on the R&D side
was, we realized also very quickly
698
:that the way to optimize and control
the system became way, way more
699
:complicated than my co-founder and
I could figure out mathematically.
700
:So we brought Yevhenii Zotkin into
our team and he is a machine learning
701
:engineer expert and he helped co-author
our patent and wrote all the components.
702
:So it's a huge AI component around
prediction using aPI calls to look at
703
:weather and traffic conditions ahead,
looking ahead, and the system then makes
704
:decisions regarding optimization of the
fuel cell and the refrigeration unit.
705
:So it's a big complex ball of
mechanical synergies, mechanical
706
:solutions, electro mechanical
solutions, and then AI to run it.
707
:Brendan Sweeney: And there's a
partnership with Ontario Tech?
708
:Will Harney: Yeah.
709
:So back to the NGen
project and Warren Ali.
710
:We heard a lot about the Arrow Project
when we were on that working together.
711
:When we needed to look at a development
site to take our project forward just
712
:from ideation into our prototype phase,
we met with the folks at Ontario Tech
713
:because they'd been working on the Arrow
One development for APMA, of course,
714
:and through meeting with Les Jacobs,
a VP of research and innovation and his
715
:team, he got us connected with a number
of leaders in his academic side like Dr.
716
:Martin Agelin-Chaab, and also
the ACE facility, which is our
717
:incredibly highly aligned to
Hydrocool climatic test facility.
718
:Which is a, again, best in class probably
unique in the world with its combined
719
:scale, climatic test capabilities, and
hydrogen vehicle testing capabilities.
720
:So it's a fantastic fit.
721
:So, John Komar, who just recently
retired from the ACE facility at OTU
722
:and his team, put together a project
with Les that allowed us to link our
723
:needs from an R&D perspective to the
practical build and test facility
724
:at OTU called ACE and work towards
developing our prototype, which we did.
725
:So it's fantastic.
726
:We're now in a phase where
we're fundraising to build our
727
:first production release which
we hope to launch in early '26.
728
:Along that way we'll be back at
ACE to do testing of the V 1.5
729
:for sure.
730
:They were great.
731
:Also, really, really strong
relationship with the Brookfield
732
:Sustainability Institute.
733
:That's based out of George
Brown College in Toronto.
734
:So Krista Holmes and her team in the R&I,
field did a ton of work for us developing
735
:models they'll be using in our AI model.
736
:Did a ton of work on our user
interface or journey mapping through
737
:meeting customers and consumers.
738
:Yeah, really great
support from BSI as well.
739
:We're also working with Centennial
College with Jonathan Hack and
740
:the team on the research front.
741
:We're part of the OVIN SmartTO RTDS.
742
:And the Centennial team, and I don't
know if you know Centennial College,
743
:but they graduate more EV techs for
passenger cars and transport applications
744
:than any other college in Canada.
745
:They have the skill sets to understand
the EV parts 'cause our technology is an
746
:EV, it's got a 400 volt DC EV platform as
well as a low voltage control platform.
747
:So they get it and they're working to
develop microcredentials and a curriculum
748
:for Hydrocool specific to work with our
partners like Pro Reefer who repair and
749
:preventatively maintain refrigerated
transfer systems throughout Canada.
750
:So there's a really interesting ecosystem
around the colleges and universities in
751
:the Greater Toronto and Ontario area.
752
:We're also lucky to have Aiden Lehal
and his team, they just recently
753
:graduated from Waterloo, Mac.
754
:And they worked on drilling into a
specific thermal synergy challenge we had
755
:within our system, a Hydrocool system.
756
:And they took it forward as a capstone
project, and ended up winning the
757
:Bombardier Recreational Product
Sustainability Award for:
758
:like, I can't even tell you how much Kraft
Dinner they got, but it was enormous.
759
:And they then they won the overall
best capstone project of the year too.
760
:So we have a lot of support at different
levels within academe and application.
761
:Those guys will probably end up
working on our next patent application
762
:'cause of the depth of work they did.
763
:Brendan Sweeney: So this moment of time
we're in where the trade agreement that
764
:has supported Canada's automotive industry
for decades is, its future is uncertain.
765
:So why is it so important to have
companies like Hydrocool or other
766
:companies doing R&D developing new
technologies in Canada at this moment?
767
:Will Harney: Well, I think it's
so important because fundamentally
768
:our technology goes into
something that we use every day.
769
:Like every year in Canada, there
are probably between seven and 9,000
770
:refrigerator trailers bought, and that's
$150,000 item from a CapEx standpoint.
771
:Not as much as a Prevost Car bus, but
it's a significant chunk of change.
772
:A lot of direct labor, a lot
of indirect labor supporting
773
:production, production level.
774
:So it's basically a $1.5
775
:to 2 billion spend every year
or you know, GDP output, if you
776
:look at it that way, every year.
777
:We don't need to necessarily go
to an export market right away.
778
:It's a massive enough piece of
business so you can stand up a company
779
:like a Hydrocool or, a Manac who
builds trailers in Quebec and ITD in
780
:Toronto can build trailers, they're
now upgrading to be able to build
781
:world class best in class solutions.
782
:And frankly, because of Canada's axis
of relationship laterally as opposed
783
:to north-south only, you know, it's
likely that with our connections with
784
:Europe under CETA, we have a fantastic
opportunity to share import and export
785
:solutions with the European community.
786
:European community, by the way, being
Europe, they've adopted the UN ATP,
787
:which is a regulatory framework for
refrigerated transport, which goes to
788
:efficiency, kinda like LEED building,
or C:
789
:So you, know, our axis not just
north-south, it's super important.
790
:It's always gonna be there it'll evolve,
and it'll change, but we can start and
791
:build an enterprise and a sector that
will prosper within Canada and with our
792
:currently friendly trading partners.
793
:It's enough to start and build like two to
:
794
:it be retaining or recruitment, it's a
huge opportunity to grow the company, give
795
:us resilience and give us independence
and autonomy for such critical inputs.
796
:And then in my view, the Hydrocool
system is a small, like a tiny,
797
:perfect hydrogen fuel cell vehicle
without wheels or steering wheel.
798
:But it's the precursor, it's the
kernel of a hydrogen fuel cell vehicle.
799
:So working with companies like Elemental
in Toronto, you start looking at pushing
800
:the technology into Class 8 trucks
and then next medium duty trucks.
801
:And way before 2035, you're gonna
see heavy duty variance of full
802
:size pickup trucks, the F250 heavy
duties, the GMC:
803
:Those vehicles, I think as a market has
shown, with amazing vehicles like the F150
804
:lightning, not a really, really fantastic
application for battery electric.
805
:Those vehicles, heavy duty versions will
benefit from being hydrogen vehicles.
806
:So I think Canada can look ahead and say,
well, when that day of reckoning comes,
807
:if we have a strong supply chain built
on our automotive network and the heavy
808
:medium duty vehicle talent base we have
in Quebec, and then you have the whole
809
:BC axis and Alberta axis for hydrogen,
you know, we have this opportunity to
810
:build a really significantly important
mobility enterprise with hydrogen as
811
:a precursor solution, and be ready.
812
:So when the penny drops on the F250 heavy
duty, we'll be there with a supply chain
813
:that can supply those critical powertrains
and possibly build our own trucks.
814
:Brendan Sweeney: Cool.
815
:So Will, thank you so much for
your time and your insight.
816
:Any parting words for us?
817
:Or the audience?
818
:Will Harney: No,I I love
the name of your podcast.
819
:Brendan Sweeney: It means two things
820
:Will Harney: Does it,
is it a double entendre?
821
:Brendan Sweeney: Yeah, Yeah, yeah.
822
:Will Harney: I'll tell you what, after,
you know, getting the entrepreneurship
823
:bug working for Magna and wanting
to get involved in developing things
824
:and when you do entrepreneurship
on your own, you wonder sometimes
825
:if you're gonna make it in Ontario.
826
:And we've been pulled a lot into San
Francisco, the Bay Area for money.
827
:And, yeah, it's so much easier,
but we're gonna make it in Ontario.
828
:We will.
829
:Brendan Sweeney: I like it.
830
:Will Harney: Between IPON for IP support,
the Hydrogen Innovation Fund, OVIN, IRAP
831
:federally now, and possibly the new IRAP
Cleantech, which is the new version of
832
:STDC, the conditions are fantastic here.
833
:We just need to focus on building our own
brands, creating an a Canadian solution
834
:that doesn't see money drain away, profit
drain away to other tax collectors.
835
:And, yeah, we'll make it,
we'll make it in Ontario.
836
:It's gonna be a made in
Ontario hydrogen future.
837
:Brendan Sweeney: This is
great for our branding.
838
:Will, thank you so much for your time.
839
:Will Harney: You are so welcome.
840
:Michelle Samson: New episodes of Making
it in Ontario are published weekly.
841
:Follow us now on Apple Podcasts or
Spotify to make sure you don't miss any.
842
:Making it in Ontario is an
initiative of the Trillium Network
843
:for Advanced Manufacturing.
844
:It is produced by Storied Places Media.