Government of Canada invests $43 million in clean technology innovation

Automotive Fuel Cell Cooperation Corp. 

Established in 2008, Automotive Fuel Cell Cooperation Corp. (AFCC) is a Burnaby, British Columbia-based joint venture with Daimler AG and Ford Motor Company that is developing fuel cell modules for automotive applications. AFCC is among the top fuel cell clusters in the world. It works closely with fuel cell systems developer NuCellSys GmbH and with Daimler's fuel cell stack manufacturing group at Mercedes-Benz Fuel Cells, co-located with AFCC in Burnaby.

• SDTC funding: $10,000,000
• Total project value: $88,370,069
• Economic sector: Transportation
• Environmental benefits: Climate change (primary), clean air (co-benefit)

Project name: Automotive fuel-cell development project

Fuel cell vehicles (FCV) are a vital component in the shift to lower-emission transportation. Multiple automotive manufacturers are currently launching or planning to launch extensive fuel-cell vehicle fleets, with global production of FCVs expected to exceed 70,000 vehicles annually by 2027. The biggest challenge remaining for automotive fuel cells is cost. Mass-market adoption will not occur until performance and cost targets are met concurrently.

AFCC is a world leader in automotive fuel-cell technology; its fuel-cell stack technology provides best-in-class performance and durability. Building on previous-generation technology, in this project AFCC will design, produce and demonstrate its GEN 4 fuel-cell stack technology as well as conduct advanced engineering on its next-generation GEN 5 technology. Consortium partner Daimler AG will roll out the GEN 4 fuel-cell stack demonstration vehicles upon their completion. Additionally, AFCC will deliver the detailed design for the proof-of-concept GEN 5 fuel-cell stack.

Canfor Pulp Products Inc. (CPPI)

CPPI is a leading global supplier of pulp and paper products with operations in the central interior of British Columbia, employing approximately 1,300 people throughout the organization. Canfor Pulp owns and operates three mills in Prince George, B.C., as well as one mill in Taylor, B.C. CPPI shares are traded on the Toronto Stock Exchange under the symbol CFX. Canfor was listed as one of British Columbia’s top employers for 2016 and was on the Forbes 2016 list of Canada’s best employers across 25 industries.

• SDTC funding: $13,050,000
• Total project value: $39,216,511
• Economic sector: Energy exploration and production
• Environmental benefit: Climate change  

Project name: Pulp mill biocrude demonstration project

In many jurisdictions, existing government policies mandate fossil-fuel producers to reduce their carbon footprint by blending renewable biofuels into existing products. In addition, shifting government policies favour cellulose-based biofuels, incentivizing carbon-reduction potential rather than biofuel volumes. 

Canfor Pulp Products Inc. (CPPI), a leading global producer of premium pulp and paper, and Licella Fibre Fuels Pty Ltd. (Licella), an Australian biofuels production start-up, have formed a joint venture in which the companies will seek to use Licella’s technology to economically convert biomass into biocrude. Using Licella’s unique catalytic hydrothermal reactor technology—which converts low-value biomass from wood waste and pulp mill waste to clean, sustainable biofuel—the companies will convert wood residues from CPPI’s pulp mills in Prince George, B.C, into biocrude oil that can be refined by existing refineries into next-generation biofuels and biochemicals. The project is based on preliminary trials conducted in Australia, where Licella successfully converted wood residue streams (wood and black liquor) originating from CPPI’s kraft process into a stable biocrude oil. 

Joint Funding with British Columbia

The Government of Canada is partnering with the Province of British Columbia to provide $40 million to spur the development and commercialization of new clean energy technologies in B.C. 

The federal contribution of up to $20 million will be provided through the SD Tech Fund, managed by Sustainable Development Technology Canada (SDTC). The $20-million provincial contribution comes from the province’s Innovative Clean Energy Fund. 

Funding from both levels of government will leverage a further $20 million in private sector investment and stimulate clean technology and innovation in British Columbia, supporting jobs, economic development and the environment. 

Sustainable Development Technology Canada 

Sustainable Development Technology Canada is an arm’s-length foundation created by the Government of Canada to promote sustainable development and support projects that develop and demonstrate new clean technologies to address issues related to climate change, air quality and clean water and soil. SDTC invests in Canadian companies that contribute positively to Canada by creating quality jobs, driving economic growth and protecting the environment.