All the parties running in the Quebec elections are betting, at least in part, on the energy transition to reduce GHG emissions. In Mauricie, a region targeted to be a nerve center of the green technology industry, companies that clear up this sector are however encountering obstacles in reaching their full potential.
In his premises at the Alphonse-Desjardins Entrepreneurship Center in Shawinigan, Bastien Theron wears a welder’s mask. He is working on a transmission shaft, a part intended to improve the traction of the electric all-terrain vehicle (ATV) for which he is fine-tuning the final details.
“That doesn’t yet exist in Quebec. There are some in Asia and the United States, but the vehicles are still less efficient than gasoline-powered ones. Ours are just as good, if not better,” says company founder and CEO Theron, showing off his black and gray camouflage patterned quad.
The market that Theron is targeting are parks, outfitters, campgrounds, municipalities, Hydro-Québec and industries that use ATVs for site maintenance and the transportation of people and materials. His vehicle is designed to be able to power a snowblower, mower and other tools.
Mr. Theron and his team have been shaping this prototype for six years. They give themselves four months to finalize it. Production will therefore be launched about a year and a half later than planned. The reason: the global shortage of microchips and several other components.
“It took us a year and a half to find tires,” underlines Mr. Theron. “For security reasons, we use chips specific to motor vehicles, and these are the most widely used in the world,” adds the engineer. The absence of a single chip can completely block the progress of the work.
The Shawinigan company Catalys, which creates various electronic products for the electric vehicle industry, has noticed that many of its customers are tearing their hair out on this subject. “They invest a lot of money, their products are starting to mature, but unfortunately their parts are no longer available,” says co-founder Simon Fitzback.
The dream of local sourcing
Mr. Theron plans to launch production of around 100 vehicles in 2023, and 1,200 the following year. He is crossing his fingers that disruptions in supply chains will no longer hold him back. The prospect of armed conflict in Taiwan, which dominates the global microchip market, is worrying.
“We have to bring manufacturing know-how back to Quebec. If we relied less on other countries, we would have fewer problems,” says the man who would like to see the creation of a semiconductor factory in Canada. And why not in Quebec? The same goes for the cells used in the manufacture of its batteries, which are difficult to obtain from Asia.
This is an opinion shared by the President and CEO of the Center of Excellence in Energy Efficiency, also located in Shawinigan. “We have to bring that back. There are big investments to be made, ”says Donald Angers, who describes disruptions in supply chains as a “major challenge”.
Funding challenges
In addition, Theron is struggling to find the investment necessary for the planned machining of its mountain bikes.
“There are a lot of calls for projects for research and development, especially from the government. But when we come to weigh in on the gas, to move on to production, we are left to our own devices,” laments Bastien Theron, who finds it more difficult to stand out and establish contacts with investors. in Mauricie than in Montreal.
An innovation zone is planned in Trois-Rivières, Shawinigan and Bécancour, designated Energy Transition Valley, to stimulate collaboration between entrepreneurs, researchers, municipalities and organizations in this sector of activity. The general manager of GROUPÉ Mauricie–Rive-Sud estimates that at least 60 companies in her region are already working in the green technology sector. For the latter, the most difficult obstacle to overcome is financing, says Michèle Landry, who defends the interests of business people in her region.
“We must constantly raise awareness among stakeholders, financial institutions and the government of the importance of supporting clean technology companies,” she says. As the majority of green techs are immature, they need capital to develop their technologies. »
GROUPÉ also asks that local and ecologically responsible purchasing be favored in public calls for tenders. Obtaining institutional and government contracts would allow many companies to spread their wings.
Political promises
For the Conservative Party of Quebec, the energy transition will essentially go through the progressive electrification of transport, according to the candidate in Laviolette–Saint-Maurice, Pierre-David Tremblay. To provide predictability to the business community, he advocates the development of an energy transition plan over several years.
“A Conservative government will provide for a parliamentary commission to allow a fiscal, legislative and economic framework that will be favorable to entrepreneurs,” said the former mayor of La Tuque.
For its part, Québec solidaire is providing $2 billion over four years to support the battery and electric vehicle sector, from mining to recycling. The outgoing deputy and candidate in Mercier, Ruba Ghazal, believes that a united government will grant aid to companies by ensuring that their projects respect its vision of the energy transition.
In a written statement, the Parti Québécois recalled that it “will create a Just Transition Fund in which it will invest 1 billion per year drawn from the Generations Fund”. In its election platform, the Liberal Party of Quebec promises to review public calls for tenders to promote local and environmental purchasing, and to accelerate the electrification of government vehicles. The Coalition avenir Québec has pledged $40 million for the creation of the Integrated Electric Battery Center in Shawinigan.