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Canada pledges Can$13.2 bn subsidies for VW battery plant

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Canada is luring Volkswagen with a multi-billion subsidy to build its first overseas EV battery plant in this country. Pictured is its new ID.Buzz, the electrified EV incarnate of its classic Microbus, unveiled in March 2022 in Austin, Texas
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Canadian Prime Minister Justin Trudeau announced Friday up to 13.2 billion Canadian dollars ($9.8 billion) in subsidies over 10 years for Volkswagen’s first overseas battery plant, to be built in St. Thomas, Ontario.

The production support matches incentives by US President Joe Biden’s administration, as Washington’s trading partners work to keep up with subsidies under the ambitious Inflation Reduction Act (IRA) amid anxieties surrounding it.

Already, European leaders fear EU-based companies could move to the US due to benefits from the act — which funnels some $370 billion into subsidies for the United States’ energy transition.

“With this historic project, we’re not just bringing back manufacturing, we’re bringing back a strong thriving economy for this community, and we’re delivering a national anchor for Canada’s electric vehicle supply chain,” Trudeau told a news conference on Friday.

He called the funding “a generational investment” in a new plant that is expected to generate about Can$200 billion in value.

His industry minister, François-Philippe Champagne, said Ottawa expects to see a full return on its investment within five years.

Volkswagen, which announced in March plans to build the plant in St. Thomas, is investing Can$7 billion in the 370-acre facility — the size of around 200 soccer fields — which, according to a statement from Trudeau’s office is “the largest electric vehicle-related investment in Canadian history.”

Construction of what is to be also the biggest manufacturing facility in Canada is set to start next year, while battery production for up to one million electric vehicles annually will begin in 2027.

The plant is expected to create up to 3,000 direct jobs and up to 30,000 indirect jobs, according to a statement.

– Drive for EV production –

Volkswagen is also setting up a series of battery plants in Europe, the first of which opens this year in Sweden. This will be followed by another in Salzgitter, Germany, in 2025.

With its own battery plants, Volkswagen is seeking to reduce its supply chain dependence on Asia.

It is also facing a tough fight against US rival Tesla for dominance of the electric car market.

Under its different brands, Volkswagen plans to introduce more than 25 different new electric models by 2030 in the United States.

The Canadian government funding of between Can$8 billion and Can$13.2 billion — an amount that will depend on battery production levels — will start being phased out in 2030 and completely eliminated after 2032.

Ontario province has also pledged Can$500 million for the plant.

Canada has been making a big push into batteries for electric vehicles, touting tax incentives, bountiful critical minerals and clean energy to attract auto makers.

When asked about the Inflation Reduction Aact, Trudeau commented that “the Canadian economy can’t go toe to toe with that on a global overall scale.”

“But we can be and we have been very strategic about where we want to step up and compete directly, and make sure that we get through the door,” he said.

Unrest abroad such as that sparked by Russia’s invasion of Ukraine, he added, “has reminded people that we need to be making things here in our countries” and firm up “supply chains that we can count on.”

Besides Volkswagen, automaker Stellantis (formerly Fiat Chrysler and the French PSA Group) and LG Energy Solution have also partnered on a new battery plant in Canada, while French tire maker Michelin is expanding its local facility.

General Motors has also signed a long-term agreement with Brazilian mining giant Vale for supplies of Canadian nickel for use in EV batteries.

And earlier this month, Ford announced a Can$1.8 billion retooling of its assembly plant in Oakville, Ontario to make electric vehicles and batteries for the North American market.

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In Brazil, hopes to use AI to save wildlife from roadkill fate

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Some 475 million vertebrate animals die on Brazilian roads every year
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In Brazil, where about 16 wild animals become roadkill every second, a computer scientist has come up with a futuristic solution to this everyday problem: using AI to alert drivers to their presence.

Direct strikes on the vast South American country’s extensive road network are the top threat to numerous species, forced to live in ever-closer proximity with humans.

According to the Brazilian Center for Road Ecology (CBEE), some 475 million vertebrate animals die on the road every year — mostly smaller species such as capybaras, armadillos and possums.

“It is the biggest direct impact on wildlife today in Brazil,” CBEE coordinator Alex Bager told AFP.

Shocked by the carnage in the world’s most biodiverse country, computer science student Gabriel Souto Ferrante sprung into action.

The 25-year-old started by identifying the five medium- and large-sized species most likely to fall victim to traffic accidents: the puma, the giant anteater, the tapir, the maned wolf and the jaguarundi, a type of wild cat.

Souto, who is pursuing a master’s degree at the University of Sao Paulo (USP), then created a database with thousands of images of these animals, and trained an AI model to recognize them in real time.

Numerous tests followed, and were successful, according to the results of his efforts recently published in the journal Scientific Reports.

Souto collaborated with the USP Institute of Mathematical and Computer Sciences.

For the project to become a reality, Souto said scientists would need “support from the companies that manage the roads,” including access to traffic cameras and “edge computing” devices — hardware that can relay a real-time warning to drivers like some navigation apps do.

There would also need to be input from the road concession companies, “to remove the animal or capture it,” he told AFP.

It is hoped the technology, by reducing wildlife strikes, will also save human lives.

– ‘More roads, more vehicles’- 

Bager said a variety of other strategies to stop the bloodshed on Brazilian roads have failed.

Signage warning drivers to be on the lookout for crossing animals have little influence, he told AFP, leading to a mere three-percent reduction in speed on average.

There are also so-called fauna bridges and tunnels meant to get animals safely from one side of the road to the other, and fences to keep them in — all insufficient to deal with the scope of the problem, according to Bager.

In 2014, he created an app called Urubu with other ecologists, to which thousands of users contributed information, allowing for the identification of roadkill hotspots.

The project helped to create public awareness and even inspired a bill on safe animal crossing and circulation, which is awaiting a vote in Congress. 

A lack of money saw the app being shut down last year, but Bager is intent on having it reactivated.

“We have more and more roads, more vehicles and a number of roadkill animals that likely continues to grow,” he said.

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Honda to build major EV plant in Canada: govt source

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Honda hopes to sell only zero-emission vehicles by 2040, with a goal of going carbon-neutral in its own operations by 2050
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Japanese auto giant Honda will open an electric vehicle plant in eastern Canada, a Canadian government source familiar with the multibillion-dollar project told AFP on Monday.

The federal government as well as the province of Ontario, where the plant will be built, will both provide some financial incentives for the deal, according to the source, who spoke on condition of anonymity.

The official announcement is due Thursday, though Ontario premier Doug Ford hinted at the deal on Monday.

“This week, we’ve landed a new deal. It will be the largest deal in Canadian history. It’ll be double the size of Volkswagen,” he said, referring to a battery plant announced last year, for which the German automaker pledged Can$7 billion (US$5 billion) in investment.

Canada in recent years has been positioning itself as an attractive destination for electric vehicle investment, touting tax incentives, renewable energy access and its rare mineral deposits.

The Honda plant, to be built an hour outside Toronto, in Alliston, will also produce electric-vehicle batteries, joining existing Volkswagen and Stellantis battery plants.

In January, when news of the deal first bubbled up in the Japanese press, the Nikkei newspaper estimated it would be worth Can$14 billion — numbers backed up by Canadian officials recently.

In the federal budget announced last week, Prime Minister Justin Trudeau’s government introduced a new business tax credit, granting companies a 10 percent rebate on construction costs for new buildings used in key segments of the electric vehicle supply chain.

Canada’s strategy follows that of the neighboring United States, whose Inflation Reduction Act has provided a host of incentives for green industry.

Honda hopes to sell only zero-emission vehicles by 2040, with a goal of going carbon-neutral in its own operations by 2050.

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Denmark launches its biggest offshore wind farm tender

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Denmark's offshore wind parks currently generate 2.7 gigawatts of electricity
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The Danish Energy Agency on Monday launched its biggest tender for the construction of offshore wind farms, aimed at producing six gigawatts by 2030 — more than double Denmark’s current capacity.

Offshore wind is one of the major sources of green energy that Europe is counting on to decarbonise electricity production and reach its 2050 target of net zero carbon production, but it remains far off the pace needed to hit its targets.

Denmark’s offshore wind parks currently generate 2.7 gigawatts of electricity, with another one GW due in 2027.

The tender covers six sites in four zones in Danish waters: North Sea I, Kattegat, Kriegers Flak II and Hesselo.

“We are pleased that we can now offer the largest offshore wind tender in Denmark to date. This is a massive investment in the green transition,”  Kristoffer Bottzauw, head of the Danish Energy Agency, said in a statement.

Investment in offshore wind plummeted in Europe in 2022 due to supply chain problems, high interest rates and a jump in prices of raw materials, before bouncing back in 2023.

A record 4.2 gigawatts was installed in Europe last year, when a record 30 billion euros in new projects were approved, the trade association WindEurope said in January.

It said it was optimistic about the future of offshore wind in Europe, expecting new offshore wind capacity of around five gigawatts per year for the next three years.

However, it noted that that was still far short of what is needed if Europe wants to hit its 2030 target of 111 gigawatts of offshore wind installed capacity, with less than 20 gigawatts installed at the end of 2023.

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