Ontario’s Electric and…

Ontario’s Electric and Hydrogen Vehicle Advancement Program (EHVAP)

Canadian Urban Transit Research & Innovation Consortium (CUTRIC)
Consortium de recherche et d’innovation en transport urbain au Canada (CRITUC)

Briefing & Consultation Submission
November 14th 2016

Submitted by:
Dr. Josipa G. Petrunic
Executive Director & CEO

Table of Contents
INTRODUCTION & BACKGROUNDER3
BACKGROUNDER4
INNOVATING BETTER SOLUTIONS IN ONTARIO5
CUTRIC IN ONTARIO: THE BUSINESS GROWTH INITIATIVE6
EVHAP OPPORTUNITY: CREATING PARTNERSHIPS TO FOSTER TECHNOLOGICAL INNOVATION6
EVHAP OPPORTUNITY: A PROVINCIAL SUPPLY CHAIN FOR EV INNOVATION7
Examples of current EV supply chain companies7
STIMULATING INNOVATION THROUGH A SYSTEM OF INTERLINKED ACTORS8
CONCLUSION9
EVHAP PROGRAM CONSULTATION10
Q1: What are the activities that would raise EV adoption levels?10
Q2. How would participation and progress be tracked and reported in the Advancement Program?10
Q3. What are the elements that create an advanced global EV manufacturing hub in Ontario?11
Q4. What are the actions/activities required to make an advanced global manufacturing hub in Ontario?11

INTRODUCTION & BACKGROUNDER
The Canadian Urban Transit Research & Innovation Consortium (CUTRIC) [Consortium de recherche et d'innovation en transport urbain au Canada] is pleased to submit this consultation briefing document (“Brief”), which responds directly to the Government of Ontario’s Electric and Hydrogen Vehicle Advancement Program (EVHAP).

The Brief focuses on positioning Ontario as a global centre of transportation innovation to reduce transportation-related emissions while creating a strong, jobs-rich economy through the design, development and manufacture of “EV technologies”, inclusive of hybrid (HEV), plug-in hybrid (PHEV), fully battery electric (BEV) and fuel cell electric vehicle (FCEV) technologies).

Specifically, this proposal responds to Ontario’s five-year Climate Change Action Plan, which aims to reduce greenhouse gas emissions (GHGs) to 15 per cent below 1990 levels by 2020, 37 per cent by 2030 and 80 per cent by 2050. And it addresses the Ministry of Transportation (MTO)’s role in supporting the innovation of technologies that support their future deployment in this province and across the country.

Thus, this proposal goes beyond the current MTO EV Discussion Paper to focus on an innovation role the MTO could and should play in this space if it hopes to move beyond taxpayer backed incentives, towards taxpayer investment into technology development and job creation in the province.

Based on two years of national and provincial consultations across Canada and Ontario (as well as British Columbia, Quebec and Manitoba), CUTRIC has adopted the founding principle that industry-led collaborative innovation projects that efficiently integrate public sector research institutes (such as universities) constitutes the best method for moving forward with the domestic development of clean technology solutions to lower transportation emissions and help Ontario meet its climate change goals. These technologies include electric and electrified vehicle technologies – both powertrain and fuelling systems technologies.

From an engineering and technology development perspective, “electric” and “electrified” vehicle technologies include hybrid electric vehicles (HEVs), plug in hybrid electric vehicles (PHEVs), fully battery electric vehicles (BEVs) and fuel cell electric vehicle (FCEVs) innovations. CUTRIC has a framework in place to assist the Government of Ontario’s innovation efforts vis-à-vis these low- and zero-emissions transportation technologies through the design, development and integrative manufacturing of these technologies in the province.
This framework promotes an entrepreneurial and creative society, while building world-leading clusters through partnerships between industry and academia across Ontario and Canada. It will support the growth of small to mid-sized enterprises and accelerate clean technology growth and adoption across the nation.

CUTRIC is working to establish Ontario (and Canada) as a world leader in low- and zero-emissions transportation-related clean technology development, including the development of hardware and software intellectual property (IP) that supports the electrification of light-duty automobiles, as well as heavy-duty trucks, vans, buses, trains and fleet delivery vehicles.

CUTRIC's Vision is to make Canada a global leader in zero- and low-emissions transportation technologies, including advanced transit, transportation, and integrated mobility technologies.

CUTRIC’s Mission is to support research, development, demonstration and integration (RDD&I) projects through industry-academic collaborations that bring innovation, design, and manufacturing to Canada’s transportation supply chain.

CUTRIC’s Objective is to support industry-academic collaborations in the development of next-generation technologies for Canadian transit, transportation and integrated mobility systems. These advancements will help drive transportation innovation across Canada, leading to job growth and economic development.
Through industry-academic partnerships, CUTRIC’s work leads to solutions that decrease fuel consumption, avoid wasted assets, and reduce redundancies in operations, thereby saving taxpayers money while at the same time supporting entrepreneurial opportunities.

BACKGROUNDER
Incorporated in August 2014 to support industry-led research, development, demonstration and integration (RDD&I) projects across Canada, CUTRIC works to coordinate innovation across five pillars of technology:

(1) Zero- and low-emissions propulsion technologies and systems integration, including battery electric propulsion technologies, hydrogen fuel cell and hydrogen combustion propulsion technologies, compressed and renewable natural gas (CNG/RNG) propulsion technologies, and advanced low-emissions engine technologies that provide demonstrable greenhouse gas (GHG) emissions reductions.

(2) Light-weight materials and processing technologies for light-weight vehicles, including composite materials, polymers, advanced metals, and multi-material designs.

(3) Autonomous and connected vehicular and infrastructure technologies that support automation, autonomy and connectivity of vehicle systems on roads and rail, including sensors, signaling, and control systems.

(4) “Big Data” and data-driven analytics solutions that support fleet and network optimization for vehicles in mixed traffic, dedicated lanes, or specialized communities.

(5) Cybersecurity technology solutions that support vehicular and infrastructure securitization for electric vehicles, hydrogen fuel cell vehicles, natural gas vehicles, and autonomous vehicles given the susceptibility of these vehicle systems and their charging/fueling supplies to new forms of malicious attack.

These themes were identified by private sector transportation and automotive industry stakeholders as well as transit systems and researchers who engaged in a series of structured consultation sessions held across Canada in 2015 – the results of which have been published in a report to the Ministry of Innovation, Science and Economic Development (ISED), entitled Automotive and Transportation Innovation Across Canada & Regional Transportation Needs and Capacities as Targeted Research, Development & Demonstration (RD&D) Projects.

CUTRIC coordinates projects related to these themes across four provinces where transportation innovation clusters currently exist – namely, Ontario, Quebec, Manitoba and British Columbia. As a member-driven consortium, CUTRIC has integrated technology manufacturers, suppliers and adopters (e.g. transit systems) resulting in more than 50 project proposals involving cutting edge, zero-emissions transportation technologies.
CUTRIC also works to coordinate a fragmented set of provincial and federal funding programs aimed at funding parts of research, development, demonstration and integration (RDD&I) in Canada’s transit, transportation and mobility manufacturing sectors.

CUTRIC’s end goal is to produce an industrial renaissance in Canada in the areas of low- and zero-emissions, light-weight, digitally connected, highly efficient, user-friendly transportation systems across all modes of transit, including bus, rail, trolley, and on-road vehicles within the next five years. This work will help make all types of vehicles more efficient and less fossil fuel intensive, thereby supporting Canada’s shift to a low-carbon economy.

INNOVATING BETTER SOLUTIONS IN ONTARIO
In developing the Electric and Hydrogen Vehicle Advancement Program (EVHAP), CUTRIC encourages the Government of Ontario to target the development of zero-emissions, light-weight, and digitally connected transportation technologies in Ontario through an innovation budget supportive of industry-led academic collaborations and large-scale demonstration trials.

Through research, development, demonstration and integration (RDD&I) projects, the Government of Ontario could address the following technology realities and opportunities vis-à-vis low- and zero-emissions transportation innovation:

1.Many “green” technologies which support zero-emissions vehicular propulsion – i.e. electric vehicle designs – are not yet optimized as energy efficient systems in and of themselves, or for infrastructure integration. They require RDD&I to scale up. Canadian manufacturers and innovators must get involved in this scaling and manufacturing growth curve starting in 2016/2017 if they hope to capitalize successfully upon the global growth of low-and zero-carbon automotive and transportation platforms.

2.Innovation investments in zero-emissions transportation technology development must be paired with “smart” infrastructure and fueling systems investments, e.g. high-powered and networked charging systems as well as low-powered ubiquitous 110V outlet systems; optimally located hydrogen electrolysis plants connected to fuel storage systems for fuel cell vehicles; and renewable natural gas (RNG) production from bio-digesters with connected piping and fuel storage for advanced natural gas vehicles (NGVs). These fueling systems need to be designed, tested and integrated into communities through “smart” infrastructure spending that converts technology innovation into infrastructure innovation.

CUTRIC IN ONTARIO: THE BUSINESS GROWTH INITIATIVE
CUTRIC has been recognized as a trusted partner in promoting innovation, most notably at the provincial level in Ontario, as well as in British Columbia, Quebec and Manitoba. Early in 2016, the Ontario Ministry of Economic Development, Employment and Infrastructure committed $10 million to CUTRIC through its Business Growth Initiative. Ontario will directly invest $10 million over four years into CUTRIC projects that support zero-emissions, advanced transportation RDD&I – i.e. technology innovation.

On June 28, 2016, CUTRIC partnered with the National Research Council of Canada (NRC) in Ottawa to host the first National CUTRIC Research & Innovation Forum dedicated to advancing transit and transportation solutions and technologies.

Dozens of private and public sector innovators delivered “ready to launch” innovation project proposals related to zero-emissions vehicles, lightweight materials, advanced transportation analytics, automated and connected vehicle systems, and cyber security solutions for vehicle communications.

Detailed evaluations are underway to earmark funding for those projects that are “ready to launch”. These projects require federal government support and co-investment to move forward. Every CUTRIC project integrates private sector funding of between 25% to 50% of total project costs, depending upon the technology readiness level (TRL) of the project. The other 75% to 50% of project costs are borne by provincial (i.e. MEDG’s $10M investment in Ontario outlined above) and/or federal investment (i.e. as per the $185M request below).

EVHAP OPPORTUNITY: CREATING PARTNERSHIPS TO FOSTER TECHNOLOGICAL INNOVATION
Ontario’s transportation and automotive sectors are in desperate need of innovation if the country intends to meet its Paris commitment to reduce emissions 30% below 2005 levels by 2030.

Historically, manufacturers, suppliers, and transit systems have not been able to develop cutting edge innovation partnerships due to a lack of flexible and supportive funding at the federal and provincial levels.
Laudable federal efforts have been made in the past with the Automotive Partnership Canada (APC) grant, which launched several world-leading industry-academic collaborative projects related to electric vehicles (EVs), fuel cell vehicles (FCEVs), and light-weight vehicles from 2009-2015. That program has now ended, and nothing has replaced it.

In addition, there has never been a targeted provincial innovation strategy for the combined “Transportation” or “Integrated Mobility” sector in Ontario, including the full spectrum of mobility platforms, i.e. bus, rail, heavy-duty trucking and light-duty automotive technologies. The federal ASIP (Automotive Supplier Innovation Program) attempted to address this issue nationally, but only in relation to automotive innovation and not with a specific focus on Ontario in general.

There are evident and challenging federal and provincial strategic gaps vis-à-vis advanced, zero-emissions (battery electric and hydrogen fuel cell electric) Big “T” Transportation innovation.
CUTRIC has been established to address this gap to support GHG reductions through transportation innovation across mobility platforms.

In light of Ontario’s Climate Action Strategy, addressing this gap requires a targeted technology-focused research, development, demonstration and integration (RDD&I) fund that would support collaborative technology projects in light-duty automotive manufacturing as well heavy-duty bus and rail technologies.

Such an initiative would build on the robust capacities and capabilities already developed across Ontario by the now-defunct federal APC program and the nascent ASIP program. It would also help to grow hundreds of small to mid-sized enterprises (SMEs) that have invested private capital into technology-driven products and services for low- and zero-emissions, lightweight and connected vehicular and transportation systems for both private and public fleets (i.e. transit).

EVHAP OPPORTUNITY: A PROVINCIAL SUPPLY CHAIN FOR EV INNOVATION
CUTRIC encourages the Government of Canada to support the development of zero-emissions, light-weight, and connected transportation technologies through an innovation budget targeting industry-led collaborative research, development, demonstration and integration (RDD&I) projects.

Supply chains for innovative electrified transportation have begun to emerge across Canada. As a larger and more diverse supply chain grows, more innovative solutions for electric and hydrogen vehicles emerge that support job growth over the long-term.

Growing a robust and sustainable EV supply chain requires government vision and investment action. Below are some of the types of companies that would benefit from such a focused investment.

Examples of current EV supply chain companies
1)D&V Electronics: http://www.dvelectronics.com/company/about-dav-electronics.html
D&V Electronics is a Toronto based designer and manufacturer of edge tester systems for laboratory, endurance and production. The systems are utilized for EV/HEV motors, EV/HEV inverters, battery packs, integrated and belted start/stop starter/generators, as well as starters, alternators and their components.

2)Hydrogenics: http://hydrogenics.com/about-the-company/who-we-are
Hydrogenics is based in Mississauga as a designer, manufacturer, builder, and installer of industrial and commercial hydrogen systems. Hydrogenics creates fuel cells for electric vehicles including buses and trucks. Hydrogenics is additionally working on “power to gas” which is an innovative way to store transport energy.

3)InMotive: http://www.inmotive.com/about-us/
InMotive develops mechatronic engineering solutions for sustainable transportation solutions. InMotive works to meet the growing global demand for sustainable transportation solutions and to address the inefficiencies that exist in today’s vehicle designs. inMotive has secured several patents for its technology and exclusively owns their associated intellectual property rights.

4)MapleSoft: http://www.maplesoft.com/solutions/engineering/IndustrySolutions/hevev…
Maplesoft, an engineering software company, has developed solutions for the growing electric and hybrid electric vehicle industry. Maplesoft software solutions allow producers to ‘develop multidisciplinary models to expose the underlying complex interactions between systems, determine component sizing, achieve higher fuel efficiency, and validate with hardware-in-the-loop testing’.

5)eCamion Inc. : http://www.ecamion.com/company/
eCamion Inc. provides energy storage solutions. eCamion Inc. specializes in the integration of battery solutions with an advanced grid control interface. The company was founded on the principle of providing green energy to support the future needs of a growing population and offering new solutions for Utilities, Automotive, Mining, Renewables and Electric Vehicle Charging Infrastructure.

6)Electrovaya : http://electrovaya.com/
Electrovaya is an Ontario headquartered company with over 400 patents in Lithium Ion battery technology. Electrovaya designs and manufactures cell components and turnkey systems for the clean transportation, smart grid, renewable energy and material handling markets. This year, Electrovaya signed a Multiyear Service Agreement (MSA) with a Fortune 1000 OEM to supply Lithium Ion Battery Modules, Battery Management Systems, the agreement will increase the market size for Electrovaya’s products as all major OEMs can now use the Electrovaya module for Lithium Ion battery application.

7)Toyota:
http://news.gc.ca/web/article-en.do?nid=614649
Toyota continues to manufacture hybrid models in Canada such as the Toyota RAV4 and the Lexus RX 450h hybrid. Toyota was given $70.84 million in 2011 through the Automotive Innovation Fund to produce the RAV4 EV which was the first highway-capable electric vehicle to be produced in Canada and the first electric vehicle to be produced by Toyota outside of Japan.

STIMULATING INNOVATION THROUGH A SYSTEM OF INTERLINKED ACTORS
The Automotive Partnership Canada Grant mentioned above is an excellent example of a funding system that encourages innovation by multiple actors. The APC provided $145 million in research funding over five years to support R&D activities to benefit the Canadian automotive industry. The APC, like CUTRIC, identified collaborative, industry-driven automotive research as a priority. It emphasized transformative, integrative projects or programs that provided Canadian industry and academia the resources required to further advanced automotive research and development ambitions. Additionally, the fund prioritized collaboration across the industry spectrum – including light- and heavy-duty vehicular technologies – to create an overall progressive automotive industry.

An Ontario EVHAP funding program would need to build on the investments already made by the APC in Ontario to make economical sense. Such an innovation program would stimulate the growth of an EV (both BEV & FCEV) innovation eco-system in the province.

In fact, Ontario has benefited the most from the federal government’s Automotive Partnership Canada (APC) grant over the past five years. Academic institutions benefiting from those funds include the University of Toronto, McMaster University, UOIT, and University of Waterloo. The APC fund allowed academic institutions to create innovative solutions to the future of automotive progression. The fund additionally provided academic institutions the ability to promote innovation and ground-breaking advancements through education of the next generation.

Some key projects that have been funded thus far include a project working on Capitalizing on the Potential of Vehicle Electrification. The project was an R&D partnership between the University of Waterloo as well as General Motors of Canada (GM) and Maplesoft Inc. The project focused on innovative design tools to streamline the design-to-commercialization process to reduce the time and cost of EV production in Canada.

The Automotive Partnership Canada program (APC) contributed $3.6 million.
•University of Toronto was granted $4.8 million in funding from the APC to develop a new material for car parts, combining two fibres to create a high-strength composite that will be used to manufacture automotive components, reducing environmental impact of auto-making overall.
•McMaster University is still carrying out a five-year research project to develop the next generation of electrified powertrains. The project is working alongside Chrysler and has received $18.1 million in funding from APC. This research aims to save Canadian auto owners money and helping to improve Canadian producers position in the global marketplace for electrified vehicles.

These APC-funded projects are a good step toward developing a more innovative future for electric and hydrogen vehicles in Ontario.

CONCLUSION
The CUTRIC framework outlined in this document is aligned with Ontario’s Climate Action Strategy, as well as the Canada’s Innovation Agenda and Vancouver Declaration process – both of which seek to reduce GHGs while driving forward job growth and creating greener, cleaner and more mobile communities.
In supporting these initiatives with flexible and sustainable transportation innovation funding (for RDD&I), Ontario can become a world-class nexus for EV technology manufacturing in the future serving the needs of a zero-carbon economy.

EVHAP PROGRAM CONSULTATION

Q1: What are the activities that would raise EV adoption levels?
CUTRIC supports the EVHAP consultation recommendation to fund R&D, but it requests the concept of “R&D” be extended to include the full spectrum of pre-commercialization technology innovation as “RDD&I”:
1.Research
2.Development
3.Demonstration
4.Integration

Co-funding of RDD&I through industry-academic collaborations in Ontario would achieve the following sub-goals, as outlined in the EVHAP consultation guidance notes:
•Design, development, optimization of multi fuel stations
•“Range anxiety” mitigation through optimized powertrain technologies
•“Smart” infrastructure development to support EV networking and charging system integration

Q2. How would participation and progress be tracked and reported in the Advancement Program?
An Ontario program dedicated to EV RDD&I needs to track basic technology and innovation metrics to determine the success and value of taxpayer investments in collaborative (industry-led) initiatives. Those metrics include the following relevant measures:
•Number of industry stakeholders (start up, SME, suppliers, OEMs, etc.) supported by virtue of the funding provided.
•Number of university and college research teams supported by virtue of the funding provided.
•Number of project-based professional jobs, including research HQP (highly qualified personnel), supported by virtue of the funding provided.
•Value of investments made to private sector companies directly.
•Value of investments made to academic research teams directly.
•Number of Ontario companies declaring commitment to relevant EV product and service technologies at the beginning and end of the funding period.
•Number of cross-provincial collaborations to support eco-system innovation integration across clusters (Vancouver, Toronto, Waterloo, Montreal).

Q3. What are the elements that create an advanced global EV manufacturing hub in Ontario?
Ontario has demonstrated an ability to move away from government-ensconced bureaucratic programmatic funding towards nimble, third-party agency-led funding as well as neutral, independent not-for-profit consortium-led innovation funding (e.g. in CUTRIC).
While a government program model might work in getting money to meritorious projects, such programs are frequently criticized for their slowness in delivering funds – i.e. their time delays from time of submission to time of funding – and their inability to quickly alter funding rules based on empirical experience and/or best practices learned over quarters rather than years.

Based on the success of the CUTRIC model starting in 2016/2017-2020, CUTRIC’s consortium of stakeholders encourages the Ontario government to locate EV-specific RDD&I funding in a neutral, independent third-party innovation consortium, rather than situating it within a government department or ministry (e.g. avoiding the Ontario Research Fund model).

Q4. What are the actions/activities required to make an advanced global manufacturing hub in Ontario?
The Ontario government ought to base its EV Innovation program funding – i.e. for RDD&I collaborative projects – upon existing clusters of capacities and experience already manifest in the province. This means publishing a Roadmap that identifies “EV Innovation and Manufacturing” as a provincial priority. The Roadmap should trace the EV supply chain as it exists across the province today, and map steps towards growing that supply chain (and associated innovation and manufacturing jobs) over the next 9 years towards a 2025 end goal.

About CUTRIC
CUTRIC is an industry-led innovation consortium dedicated to fostering research, development, demonstration and integration (RDD&I) projects focused on zero-emissions, lightweight and autonomous/connected vehicular systems, as well as Big Data solutions for transit and transportation optimization. CUTRIC develops projects in Ontario, Quebec, Manitoba and British Columbia.
www.cutric-crituc.org

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