Tag Archives: Scientific Research and Experimental Development (SR&ED) program

Hydrogen In Motion (H2M), its solid state hydrogen storage nanomaterial, and running for Vancouver (Canada) City Council?

Vancouver city politics don’t usually feature here. but this June 13 ,2022 article by Kenneth Chan for the Daily Hive suggests that might be changing,

Colleen Hardwick’s TEAM for a Livable Vancouver party has officially nominated six candidates to fill Vancouver city councillor seats in the upcoming civic election.

….

Grace Quan is a co-founder and the head of Hydrogen In Motion, which specializes in developing a nanomaterial to store hydrogen [emphasis mine]. She previously worked for the Canadian International Development Agency and in the Foreign Service and served as a senior advisor to the CFO of the Treasury Board of Canada.

There’s not a lot of detail in the description which is reasonable considering five other candidates were being announced.

Since this blog is focused on nanotechnology and other emerging technologies, the word ‘nanomaterial’ popped out. Its use in the candidate’s description is close to meaningless, similar to saying that your storage container is made from a material. In this case, the material (presumably) is exploiting advantages found at the nanoscale. As for Quan, the work experience cited highlights experience working in government agencies but doesn’t include any technology development.

My main interest is the technology followed by the business aspects. As for why Quan is running for political office and how she will find the time; I can only offer speculation.

Hydrogen in Motion’s storage technology

Obviously the place to look is the Hydrogen in Motion (H2M) website. Descriptions of their technology are vague (from the company’s Hydrogen page),

Hydrogen In Motion solution is leading a breakthrough in solid state hydrogen storage nanomaterial. H2M hydrogen storage redefines the use of hydrogen fuel technologies and simplifying its logistical applications. Our technology offers hydrogen energy solution that has positive economic and environmental impact and provides an infinite source of constant energy with no emissions, low cost commitment and versatility with compact storage. Our technology solution has resolved the constraints currently burdening the hydrogen economy, making it the most viable solution for commercialization of future clean energy.

Which nanomaterial(s) are they using? Carbon nanotubes, graphene, gold nanoparticles, borophene, perovskite, fullerenes, etc.? The company’s Products page offers a little more information and some diagrams,

H2M fuel cell technology is well-adapted for a wide range of applications, from nomadic to stationary, enabling for easy transition to emission free systems. As the H2M nanomaterial is conformable, H2M hydrogen storage containers can be shaped to meet the application requirements; from extending flight duration for drones to grid scale renewable energy storage for solar, wind, and wave. H2M is the most effective Hydrogen storage ever designed.

There are no product names nor pictures of products other than this, which is in the banner,

[downloaded from https://www.hydrogeninmotion.com/products/]

No names, no branding, no product specifications.

Unusually for a startup, neither member of the executive team seems to have been the scientist who developed or is developing the nanomaterial for this technology. Also unusual, there’s not a scientific advisory board. Grace Quan has credentials as a Certified Public Accountant (CPA) and holds a Master of Business Administration (MB). Plus there’s this from the About Us page,

Grace has over 25 years of experience spanning a wealth of sectors including government – Federal Government of Canada, the Provincial Government (Minister’s Office) of Alberta; Academia – University of British Columbia, and Management of a Flying School; Not-for-Profit / Research Funding Agency – Genome British Columbia; and private sector with various management positions. Grace is well positioned to lead H2M in navigating the complicated world of Federal and Provincial politics and program funding requirements. At the same time Grace’s skills and expertise in the private sector will be invaluable in providing strategic direction in the marketing, finance, human resource, and production domains.

The other member of the executive team, Mark Cannon, the chief technical officer, has a Master of Science and a Bachelor of Mathematics. Plus there’s this from the About Us page,

Mark has over thirty years of experience commercializing academic developments, covering such diverse fields as: real time vision analysis, electromagnetic measurement and simulation, Computer Aided Design of printed circuit boards and microchips, custom integrated semiconductor chips for encryption, optical fibre signal measurement and recovery, and building energy management systems. He has worked at major research and development companies such as Systemhouse, Bell-Northern Research (later absorbed by Nortel), and Cadence Design Systems. Mark is very familiar with technology startups, the exigencies of entrepreneurship, and the business cycle of introducing new products into the market having cofounded two successful start-ups: Unicad Inc. (bought by Cooper & Chyan Technologies) and Viewnyx Corporation. He has also held key roles in two other start-ups, Chrysalis ITS and Optovation Inc.

His experience seems almost entirely focused on electronics and optics. It’s not clear to me how this experience is transferable to hydrogen storage and nanomaterials. (As well, his TechCrunch profile lists him as having founded one company rather than the three listed in his company’s profile.)

The company’s R&D page offers an overview of the process, the skills needed to conduct the research, and some quite interesting details about hydrogen storage but no scientific papers,

Conceive/Improve Theoretical Modelling

The theoretical team uses physical chemical theory starting at the quantum level using density functional theory (DFT) to model material composed of the elements that provide a structure and attract hydrogen. Once the theoretical material has been tested on that scale, further models are built using Molecular dynamics, thermodynamic modeling and finally computational fluid dynamic modeling. The team continuously provide support by modeling the different stages of synthesis to determine the optimal parameters required to achieve the correct synthesis.

Material Synthesis

The synthesis team uses a variety of chemical and physical state alteration techniques to synthesize the desired material. Series of experiments are devised to build the desired material usually one stage at a time. Usually a series of experiments are planned to determine key synthesis parameters that effect the material. Once a base material is completed, a series of experiments is devised and repeated to bring it to the next stage.

Characterization

Test Hydrogen Absorption & Desorption

Ultimately, the material’s performance is based on the results from the H2MS hydrogen measurement system. Once a material has been successfully synthesized and validated using the H2MS, multiple measurements are made at different temperatures for multiple cycles. This validates the robustness, operating range, and re-usability of the hydrogen storage material. For our first material [emphasis mine], a scale up plan is being developed. Moving from laboratory scale to manufacturing scale [emphasis mine] introduces several challenges in the synthesis of material. This includes equipment selection, fluid and thermal dynamic effects at a larger scale, reaction kinetics, chemical equilibrium and of course, cost.

At what stage is this company?

The business

There are a couple of promising business developments. First, there’s a September 1, 2021 Hydrogen in Motion news release (Note: Links have been removed),

Loop Energy (TSX: LPEN), a developer and manufacturer of hydrogen fuel cell-based solutions, and Hydrogen In Motion (H2M), a leading provider of solid state hydrogen storage, announce their plans to collaborate on converting  a Southern Railway of BC owned and operated diesel electric switcher locomotive to hydrogen electric.

The two British Columbia-based companies will use locally developed technology, including Loop Energy’s 50kw eFlow™ fuel cell system and a low pressure solid state hydrogen storage tank developed by H2M. The project signifies the first instance of Loop supplying its products for use in a rail transport application.

“This is an exciting phase for the hydrogen fuel cell industry as this proves that it is technically and economically feasible to convert diesel-powered switcher locomotives to hydrogen fuel cell-based power systems,” said Grace Quan, CEO of Hydrogen-in-Motion. “The introduction of a hydrogen infrastructure into railyards reduces air contaminants and greenhouse gases and brings clean technologies, job growth and innovation to local communities.”

A few months before, a July 30, 2021 Hydrogen in Motion news release announced an international deal,

Hydrogen In Motion (H2M) announced a collaboration with H2e Power [h2e Power Systems] out of Pune, India for a project to assess, design, install and demonstrate a hydrogen fuel cell 3-Wheeler using H2e PEM Fuel Cell integrated with Hydrogen In Motion’s innovative solid state hydrogen storage technology onboard. This Indo-Canadian collaboration leverages the zero emission and hydrogen strategies released in India and Canada. Hydrogen In Motion is receiving advisory services and up to $600,000 in funding support for this project through the Canadian International Innovation Program (CIIP). CIIP is a funding program offered by Global Affairs Canada [emphasis mine] and is delivered in collaboration with the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). Respectively in India, H2e’s contributions towards this collaboration are supported by the Department of Science & Technology (DST) in collaboration with Global Innovation and Technology Alliance (GITA).

About This Project – This project will install a hydrogen fuel cell range extender using H2M low pressure hydrogen storage tanks on an electric powered three-wheeled auto rickshaw. Project goal is to significantly extend operational range and provide auxiliary power for home use when not in service.

The lack of scientific papers about the company’s technology is a little concerning. It’s not unheard of but combined with not identifying the scientist/inventor who developed the technology or identifying the source for the technology (in Canada, it’s almost always a university), or giving details about the technology or giving product details or noting that their products are being beta tested (?) in two countries India and Canada, or information about funding (where do they get their money?), or having a scientific advisory board, raises questions. The answer may be simple. They don’t place much value on keeping their website up to date as they are busy.

I did find some company details on the Companies of Canada.com website,

Hydrogen In Motion Inc. (H2M) is a company from Vancouver BC Canada. The company has corporate status: Active.

This business was incorporated 8 years ago on 8th January 2014

Hydrogen In Motion Inc. (H2M) is governed under the Canada Business Corporations Act – 2014-01-08. It a company of type: Non-distributing corporation with 50 or fewer shareholders.

The date of the company’s last Annual Meeting is 2021-01-01. The status of its annual filings are: 2021 -Filed, 2020 -Filed, 2019 -Filed.

Kona Equity offers an analysis (from the second quarter of 2019 to the fourth quarter of 2020),

Hydrogen In Motion

Founded in 2014

Strengths

There are no known strengths for Hydrogen In Motion

Weaknesses

Hydrogen In Motion has a very small market share in their industry

Revenue generated per employee is less than the industry average

Revenue growth is less than the industry average

The number of employees is not growing as fast as the industry average

Variance of revenue growth is more than the industry average

7 employees

Employee growth rate from first known quarter to current -69.6%

I’d love to see a more recent analysis taking into account the 2021 business deals.

It’s impossible to tell when this job was posted but it provides some interesting insight, All the emphases are mine,

We are looking for an accomplished Chemical Process Engineer to lead our nanomaterial and carbon-rich material production, development and scale-up efforts. The holder of this position will be responsible for leading a team of engineers and technicians in the designing, developing and optimizing of process unit operations to provide high quality nanomaterials at various scales ranging from Research and Development to Commercial Manufacturing with good manufacturing practices (cGMP). The successful candidate is expected to independently strategize, analyze, design and control product scale-up to meet volume and quality demands.

Finally, there’s a chemical engineer or two. Plus, according to the company’s LinkedIn profile, there’s a theoretical physicist, Andrey Tokarev. Two locations are listed for Hydrogen in Motion, the Cordova St. office and something at 12388 88 Ave, Surrey. The company size is listed at 11 to 50 employees.

Grace Quan is good at getting government support for her company as this February 2019 story on the Government of Canada website shows,

Mark Cannon, Hydrogen in Motion CTO, Quak Foo Lee, chemical engineer, Angus Hui, co-op student, Dr. Pei Pei, research associate, Grace Quan, CEO, Sahida Kureshi PhD Candidate, and Dr. Andrey Tokerav, theoretical physicist. [downloaded from https://www.international.gc.ca/world-monde/stories-histoires/2019/CPTPP-hydrogen.aspx?lang=eng]

Canada in Asia-Pacific

Trade diversification | February 2019

Grace Quan’s goal is to deliver hydrogen around the world to help the environment and address climate change.

Quan is the CEO of Vancouver-based Hydrogen in Motion, a clean-tech company leading the way in hydrogen storage.

The number one problem with hydrogen is how to store it, which is why Quan founded Hydrogen in Motion. She set out to find a way to get hydrogen to people around the world.

Quan’s company has figured out how to do this. By using a material that soaks up hydrogen like a sponge, more of it can be stored at a lower pressure and at lower cost.

In the future, clean energy, including hydrogen, should become the method of choice to power anything that requires gas or electricity. For example, vehicles, snow blowers and drones could be powered by hydrogen in the future. Hydrogen is an infinite source of clean energy that can lessen the environmental impact from other sources of energy.

Thanks to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Quan says she can explore new markets in the Asia-Pacific region for hydrogen export.

Japan is a new market that Quan’s company will explore as a result of the CPTPP. There’s a lot of opportunity there, with Tokyo hosting the 2020 Olympics, which are expected to be powered by hydrogen.

Quan recently returned from a trade mission to India [emphasis mine], where local trade commissioners helped her set up a meeting with a major auto maker.

In 2020, Hydrogen in Motion was a ‘success story‘ for Canada’s Scientific Research and Experimental Development (SR&ED) Tax Incentive Program (Note: A link has been removed),

H2M was selected for the free in-person First-time claimant advisory service when filing its first scientific research and experimental development (SR&ED) claim. Since then, the SR&ED tax incentives have had a significant impact on the company’s work. The company is not only thankful for the program’s funding, but also to the SR&ED staff for their hard work and assistance, especially during the pandemic.

The company’s Chief Executive Officer, Grace Quan, had the following comments:

“In the context of COVID-19 shutdowns and general business disruption, the SR&ED tax incentives have become a critical source of funds as other sources were put on hold due to the pandemic and the financial uncertainty of the times. I wish to express my extreme gratitude for the consideration, efforts and support, as well as thanks, to the Canadian government, the SR&ED Program and its staff for their compassionate and empathetic treatment of individuals and businesses. The staff was friendly, professional, prompt and went above and beyond to help a small business like Hydrogen In Motion. They were a pleasure to work with and were extremely effective in problem resolution and facilitating processing of our SR&ED refund to provide much needed cash flow during these difficult times.”

As you might expect from someone running for political office, Quan is good at promoting herself. From her Advisory Board profile page for the Vancouver Economic Commission,

As President & CEO of Hydrogen In Motion Inc. (H2M), Grace brings fiduciary accountability and strategic vision to the table with her CPA/CMA [certified management accountant] and MBA credentials. Grace has a vast range of financial and managerial experience in private and public sectors from managing a Flying School, to working in a Provincial Minister’s office, to helping to manage the $250 billion dollar budget for the Treasury Board Secretariat of the Government of Canada. 

In 2018 Grace Quan, CEO was recognized by BC Business magazine as one of the 50 Most Influential Women In STEM. [emphasis mine]

July 28, 2021 it was announced that Quan became a member of the World Hydrogen Advisory Board of the Sustainable Energy Council (UK).

Speculating about a political candidate

Grace Quan’s electoral run seems like odd timing. If your company just signed two deals less than a year ago during what seems to be an upswing in its business affairs then running for office (an almost full time job in itself) as a city councillor (a full time job, should you be elected) is an unexpected move from someone with no experience in public office.

Another surprising thing? The British Columbia Centre for Innovation and Clean Energy (CICE) announced a new consortium according to a Techcouver.com June 9, 2022 news item (about four days before the announcement of Quan’s political candidacy on the Daily Hive),

The British Columbia Centre for Innovation and Clean Energy (CICE) is partnering with businesses and government organizations to drive B.C.’s low-carbon hydrogen economy forward, with the launch of the B.C. Hydrogen Changemakers Consortium (BCHCC).

The partnership was announced at last night’s official Consortium launch event hosted by CICE and attended by leading B.C. hydrogen players, investors, and government officials. The Consortium launch is part of CICE’s previously announced Hydrogen Blueprint Investment, which will lay a foundation for the establishment of a hydrogen hub in Metro Vancouver, co-locating hydrogen supply and demand.

The group is expected to grow as projects and collaborations increase. To date, the Consortium members include: Ballard Power Systems, Capilano Maritime Design Ltd., Climate Action Secretariat, Fort Capital, FortisBC, Geazone Eco-Courier, Hydra Energy, HTEC, Innovative Clean Energy Fund, InBC Investment Corp., Modo, Parkland Refining, Powertech Labs, and TransLink.

Hydrogen in Motion doesn’t seem to be one of the inaugural members, which may mean nothing or may hint at why Quan is running for office.

Three possibilities

Perhaps the company is not doing so well? There’s a very high failure rate with technology companies. The ‘valley of death’ is the description for taking a development from the lab and turning it into a business (which is almost always highly dependent on government funding). Assuming the company manages to get something to market and finds customers, the next stage, growing the company from a few million in revenues to 10s and 100s of millions of dollars is equally fraught.

Keeping the company afloat for eight years is a big accomplishment especially when you factor in COVID-19 which has had a devastating impact on businesses large and small.

Alternatively, the company is being acquired (or would that be absorbed?) by a larger company. Entrepreneurs in British Columbia have a long history of growing their tech companies with the goal of being acquired and getting a large payout. Quan’s co-founder certainly has experience with growing a company and then selling it to a larger company.

Finally, the company is doing just fine but Quan is bored and needs a new challenge (which may be the case in the other two scenarios as well). if you look at her candidate profile page, you’ll see she has a range of interests.

Note: I am not offering an opinion on Quan’s suitability for political office. This is neither an endorsement nor an ‘anti-endorsement’.

Canada’s science and its 2022 federal budget (+ the online April 21, 2022 symposium: Decoding Budget 2022 for Science and Innovation)

Here’s my more or less annual commentary on the newly announced federal budget. This year the 2022/23 Canadian federal budget was presented by Chrystia Freeland, Minister of Finance, on April 7, 2022.

Sadly the budgets never include a section devoted to science and technology, which makes finding the information a hunting exercise.

I found most of my quarry in the 2022 budget’s Chapter 2: A Strong, Growing, and Resilient Economy (Note: I’m picking and choosing items that interest me),

Key Ongoing Actions

  • $8 billion to transform and decarbonize industry and invest in clean technologies and batteries;
  • $4 billion for the Canada Digital Adoption Program, which launched in March 2022 to help businesses move online, boost their e-commerce presence, and digitalize their businesses;
  • $1.2 billion to support life sciences and bio-manufacturing in Canada, including investments in clinical trials, bio-medical research, and research infrastructure;
  • $1 billion to the Strategic Innovation Fund to support life sciences and bio-manufacturing firms in Canada and develop more resilient supply chains. This builds on investments made throughout the pandemic with manufacturers of vaccines and therapeutics like Sanofi, Medicago, and Moderna;
  • $1 billion for the Universal Broadband Fund (UBF), bringing the total available through the UBF to $2.75 billion, to improve high-speed Internet access and support economic development in rural and remote areas of Canada;
  • $1.2 billion to launch the National Quantum Strategy, Pan-Canadian Genomics Strategy, and the next phase of Canada’s Pan-Canadian Artificial Intelligence Strategy to capitalize on emerging technologies of the future [Please see: the ‘I am confused’ subhead for more about the ‘launches’];
  • Helping small and medium-sized businesses to invest in new technologies and capital projects by allowing for the immediate expensing of up to $1.5 million of eligible investments beginning in 2021;

While there are proposed investments in digital adoption and the Universal Broadband Fund, there’s no mention of 5G but perhaps that’s too granular (or specific) for a national budget. I wonder if we’re catching up yet? There have been concerns about our failure to keep pace with telecommunications developments and infrastructure internationally.

Moving on from ‘Key Ongoing Actions’, there are these propositions from Chapter 2: A Strong, Growing, and Resilient Economy (Note: I have not offset the material from the budget in a ‘quote’ form as I want to retain the formatting.),

Creating a Canadian Innovation and Investment Agency

Canadians are a talented, creative, and inventive people. Our country has never been short on good ideas.

But to grow our economy, invention is not enough. Canadians and Canadian companies need to take their new ideas and new technologies and turn them into new products, services, and growing businesses.

However, Canada currently ranks last in the G7 in R&D spending by businesses. This trend has to change. [Note: We’ve been lagging from at least 10 or more years and we keep talking about catching up.]

Solving Canada’s main innovation challenges—a low rate of private business investment in research, development, and the uptake of new technologies—is key to growing our economy and creating good jobs.

A market-oriented innovation and investment agency—one with private sector leadership and expertise—has helped countries like Finland and Israel transform themselves into global innovation leaders. {Note: The 2021 budget also name checked Israel.]

The Israel Innovation Authority has spurred the growth of R&D-intensive sectors, like the information and communications technology and autonomous vehicle sectors. The Finnish TEKES [Tekes – The Finnish Funding Agency for Technology and Innovation] helped transform low-technology sectors like forestry and mining into high technology, prosperous, and globally competitive industries.

In Canada, a new innovation and investment agency will proactively work with new and established Canadian industries and businesses to help them make the investments they need to innovate, grow, create jobs, and be competitive in the changing global economy.

Budget 2022 announces the government’s intention to create an operationally independent federal innovation and investment agency, and proposes $1 billion over five years, starting in 2022-23, to support its initial operations. Final details on the agency’s operating budget are to be determined following further consultation later this year.

Review of Tax Support to R&D and Intellectual Property

The Scientific Research and Experimental Development (SR&ED) program provides tax incentives to encourage Canadian businesses of all sizes and in all sectors to conduct R&D. The SR&ED program has been a cornerstone of Canada’s innovation strategy. The government intends to undertake a review of the program, first to ensure that it is effective in encouraging R&D that benefits Canada, and second to explore opportunities to modernize and simplify it. Specifically, the review will examine whether changes to eligibility criteria would be warranted to ensure adequacy of support and improve overall program efficiency. 

As part of this review, the government will also consider whether the tax system can play a role in encouraging the development and retention of intellectual property stemming from R&D conducted in Canada. In particular, the government will consider, and seek views on, the suitability of adopting a patent box regime [emphasis mine] in order to meet these objectives.

I am confused

Let’s start with the 2022 budget’s $1.2 billion to launch the National Quantum Strategy, Pan-Canadian Genomics Strategy, and the next phase of Canada’s Pan-Canadian Artificial Intelligence Strategy. Here’s what I had in my May 4, 2021 posting about the 2021 budget,

  • Budget 2021 proposes to provide $360 million over seven years, starting in 2021-22, to launch a National Quantum Strategy [emphasis mine]. The strategy will amplify Canada’s significant strength in quantum research; grow our quantum-ready technologies, companies, and talent; and solidify Canada’s global leadership in this area. This funding will also establish a secretariat at the Department of Innovation, Science and Economic Development to coordinate this work.
  • Budget 2021 proposes to provide $400 million over six years, starting in 2021-22, in support of a Pan-Canadian Genomics Strategy [emphasis mine]. This funding would provide $136.7 million over five years, starting in 2022-23, for mission-driven programming delivered by Genome Canada to kick-start the new Strategy and complement the government’s existing genomics research and innovation programming.
  • Budget 2021 proposes to provide up to $443.8 million over ten years, starting in 2021-22, in support of the Pan-Canadian Artificial Intelligence Strategy [emphasis mine], …

How many times can you ‘launch’ a strategy?

A patent box regime

So the government is “… encouraging the development and retention of intellectual property stemming from R&D conducted in Canada” and is examining a “patent box regime” with an eye as to how that will help achieve those ends. Interesting!

Here’s how the patent box is described on Wikipedia (Note: Links have been removed),

A patent box is a special very low corporate tax regime used by several countries to incentivise research and development by taxing patent revenues differently from other commercial revenues.[1] It is also known as intellectual property box regime, innovation box or IP box. Patent boxes have also been used as base erosion and profit shifting (BEPS) tools, to avoid corporate taxes.

Even if they can find a way to “incentivize” R&D, the government has a problem keeping research in the country (see my September 17, 2021 posting (about the Council of Academies CCA’s ‘Public Safety in the Digital Age’ project) and scroll down about 50% of the way to find this,

There appears to be at least one other major security breach; that involving Canada’s only level four laboratory, the Winnipeg-based National Microbiology Lab (NML). (See a June 10, 2021 article by Karen Pauls for Canadian Broadcasting Corporation news online for more details.)

As far as I’m aware, Ortis [very senior civilian RCMP intelligence official Cameron Ortis] is still being held with a trial date scheduled for September 2022 (see Catherine Tunney’s April 9, 2021 article for CBC news online) and, to date, there have been no charges laid in the Winnipeg lab case.

The “security breach” involved sending information and sample viruses to another country, without proper documentation or approvals.

While I delved into a particular aspect of public safety in my posting, the CCA’s ‘Public Safety in the Digital Age’ project was very loosely defined and no mention was made of intellectual property. (You can check the “Exactly how did the question get framed?” subheading in the September 17, 2021 posting.)

Research security

While it might be described as ‘shutting the barn door after the horse got out’, there is provision in the 2022 budget for security vis-à-vis our research, from Chapter 2: A Strong, Growing, and Resilient Economy,

Securing Canada’s Research from Foreign Threats

Canadian research and intellectual property can be an attractive target for foreign intelligence agencies looking to advance their own economic, military, or strategic interests. The National Security Guidelines for Research Partnerships, developed in collaboration with the Government of Canada– Universities Working Group in July 2021, help to protect federally funded research.

  • To implement these guidelines fully, Budget 2022 proposes to provide $159.6 million, starting in 2022-23, and $33.4 million ongoing, as follows:
    • $125 million over five years, starting in 2022-23, and $25 million ongoing, for the Research Support Fund to build capacity within post- secondary institutions to identify, assess, and mitigate potential risks to research security; and
    • $34.6 million over five years, starting in 2022-23, and $8.4 million ongoing, to enhance Canada’s ability to protect our research, and to establish a Research Security Centre that will provide advice and guidance directly to research institutions.

Mining

There’s a reason I’m mentioning the mining industry, from Chapter 2: A Strong, Growing, and Resilient Economy,

Canada’s Critical Minerals and Clean Industrial Strategies

Critical minerals are central to major global industries like clean technology, health care, aerospace, and computing. They are used in phones, computers, and in our cars. [emphases mine] They are already essential to the global economy and will continue to be in even greater demand in the years to come.

Canada has an abundance of a number of valuable critical minerals, but we need to make significant investments to make the most of these resources.

In Budget 2022, the federal government intends to make significant investments that would focus on priority critical mineral deposits, while working closely with affected Indigenous groups and through established regulatory processes. These investments will contribute to the development of a domestic zero-emissions vehicle value chain, including batteries, permanent magnets, and other electric vehicle components. They will also secure Canada’s place in important supply chains with our allies and implement a just and sustainable Critical Minerals Strategy.

In total, Budget 2022 proposes to provide up to $3.8 billion in support over eight years, on a cash basis, starting in 2022-23, to implement Canada’s first Critical Minerals Strategy. This will create thousands of good jobs, grow our economy, and make Canada a vital part of the growing global critical minerals industry.

I don’t recall seeing mining being singled out before and I’m glad to see it now.

A 2022 federal budget commentary from University Affairs

Hannah Liddle’s April 8, 2022 article for University Affairs is focused largely on the budget’s impact on scientific research and she picked up on a few things I missed,

Budget 2022 largely focuses on housing affordability, clean growth and defence, with few targeted investments in scientific research.

The government tabled $1 billion over five years for an innovation and investment agency, designed to boost private sector investments in research and development, and to correct the slow uptake of new technologies across Canadian industries. The new agency represents a “huge evolution” in federal thinking about innovation, according to Higher Education Strategy Associates. The company noted in a budget commentary that Ottawa has shifted to solving the problem of low spending on research and development by working with the private sector, rather than funding universities as an alternative. The budget also indicated that the innovation and investment agency will support the defence sector and boost defence manufacturing, but the promised Canada Advanced Research Projects Agency – which was to be modelled after the famed American DARPA program – was conspicuously missing from the budget. [emphases mine]

However, the superclusters were mentioned and have been rebranded [emphasis mine] and given a funding boost. The five networks are now called “global innovation clusters,” [emphasis mine] and will receive $750 million over six years, which is half of what they had reportedly asked for. Many universities and research institutions are members of the five clusters, which are meant to bring together government, academia, and industry to create new companies, jobs, intellectual property, and boost economic growth.

Other notable innovation-related investments include the launch of a critical minerals strategy, which will give the country’s mining sector $3.8 billion over eight years. The strategy will support the development of a domestic zero-emission vehicle value chain, including for batteries (which are produced using critical minerals). The National Research Council will receive funding through the strategy, shared with Natural Resources Canada, to support new technologies and bolster supply chains of critical minerals such as lithium and cobalt. The government has also targeted investments in the semiconductor industry ($45 million over four years), the CAN Health Network ($40 million over four years), and the Canadian High Arctic Research Station ($14.5 million over five years).

Canada’s higher education institutions did notch a win with a major investment in agriculture research. The government will provide $100 million over six years to support postsecondary research in developing new agricultural technologies and crop varieties, which could push forward net-zero emissions agriculture.

The Canada Excellence Research Chairs program received $38.3 million in funding over four years beginning in 2023-24, with the government stating this could create 12 to 25 new chair positions.

To support Canadian cybersecurity, which is a key priority under the government’s $8 billion defence umbrella, the budget gives $17.7 million over five years and $5.5 million thereafter until 2031-32 for a “unique research chair program to fund academics to conduct research on cutting-edge technologies” relevant to the Communications Security Establishment – the national cryptologic agency. The inaugural chairs will split their time between peer-reviewed and classified research.

The federal granting councils will be given $40.9 million over five years beginning in 2022-23, and $9.7 million ongoing, to support Black “student researchers,” who are among the underrepresented groups in the awarding of scholarships, grants and fellowships. Additionally, the federal government will give $1.5 million to the Jean Augustine Chair in Education, Community and Diaspora, housed at York University, to address systemic barriers and racial inequalities in the Canadian education system and to improve outcomes for Black students.

A pretty comprehensive listing of all the science-related funding in the 2022 budget can be found in an April 7, 2022 posting on the Evidence for Democracy (E4D) blog,

2022 budget symposium

Here’s more about the symposium from the Canadian Science Policy Centre (CSPC), from the Decoding Budget 2022 event page,

Decoding Budget 2022 for Science and Innovation

The CSPC Budget Symposium will be held on Thursday April 21 [2022] at 12:00 pm (EST), and feature numerous speakers from across the country and across different sectors, in two sessions and one keynote presentation by Dave Watters titled: “Decoding Budget 2022 for Science and Innovation”.

Don’t miss this session and all insightful discussions of the Federal Budget 2022.

Register Here

You can see the 2022 symposium poster below,

By the way, David Watters gave the keynote address for the 2021 symposium too. Seeing his name twice now aroused my curiosity. Here’s a little more about David Watters (from a 2013 bio on the Council of Canadian Academies website), Note: He is still president,

David Watters is President of the Global Advantage Consulting Group, a strategic management consulting firm that provides advice to corporate, association, and government clients in Canada and abroad.

Mr. Watters worked for over 30 years in the federal public service in a variety of departments, including Energy Mines and Resources, Consumer and Corporate Affairs, Industry Canada (as Assistant Deputy Minister), Treasury Board Secretariat (in charge of Crown corporations and privatization issues), the Canadian Coast Guard (as its Commissioner) and Finance Canada (as Assistant Deputy Minister for Economic Development and Corporate Finance). He then moved to the Public Policy Forum where he worked on projects dealing with the innovation agenda, particularly in areas such as innovation policy, health reform, transportation, and the telecommunications and information technology sectors. He also developed reports on the impact of the Enron scandal and other corporate and public sector governance problems for Canadian regulators.

Since starting the Global Advantage Consulting Group in 2002, Mr. Watters has assisted a variety of public and private clients. His areas of specialization and talent are in creating visual models for policy development and decision making, and business models for managing research and technology networks. He has also been an adjunct professor at the Telfer School of Management at the University of Ottawa, teaching International Negotiation.

Mr. Watters holds a Bachelor’s degree in Economics from Queen’s University as well as a Law degree in corporate, commercial and tax law from the Faculty of Law at Queen’s University.

So, an economist, lawyer, and government bureaucrat is going to analyze the budget with regard to science and R&D? If I had to guess, I’d say he’s going to focus in ‘innovation’ which I’m decoding as a synonym for ‘business/commercialization’.

Getting back to the budget, it’s pretty medium where science is concerned with more than one -re-announcement’. As the pundits have noted, the focus is on deficit reduction and propping up the economy.

ETA April 20, 2022: There’s been a keynote speaker change, from an April 20, 2022 CSPC announcement (received via email),

… keynote presentation by Omer Kaya, CEO of Global Advantage Consulting Group. Unfortunately, due to unexpected circumstances, Dave Watters will not be presenting at this session as expected before.