Chilliwack’s David Leger couldn’t see Mt. Cheam for all the smog back in 1998, and that led him to eventually found Loop Energy, a pioneer in hydrogen fuel-cell technology. (Facebook photo)

Chilliwack’s David Leger couldn’t see Mt. Cheam for all the smog back in 1998, and that led him to eventually found Loop Energy, a pioneer in hydrogen fuel-cell technology. (Facebook photo)

Loop Energy: Chilliwack fuel-cell startup hits bumps on road to success

This is part two of a three-part series on the rise of Loop Energy, now being traded publicly on the TSX

A company that had humble beginnings in Chilliwack more than 20 years ago hit the big time last week when it went public on the Toronto Stock Exchange. Loop Energy, a pioneer in the world of hydrogen fuel cells, may one day soon be a billion dollar company.

Here’s part two in a three part series, detailing the long journey from there to here.

You can read part one here.

———————————————-

David Leger has two rules he follows when raising capital for business opportunities.

Don’t invest money you can’t afford to lose. And if I do lose your money, you’ll still have a beer with me.

When Loop Energy was incorporated in June of 2000 and the founding directors went to work raising capital for his fuel cell project, they found plenty of Chilliwackians willing to accept those rules.

There were lots of discussions at kitchen tables about his vision and his dream for what he thought might be possible. Local business people kicked in cash. People dipped into the retirement savings plans, handing Leger $10,000 here or $12,500 there because they believed in what he was doing.

The company ended up pulling in $350,000, with the majority of the company’s initial shareholders hailing from Chilliwack.

That sounds like a big amount of money, and it is, but Leger chuckles now as he looks back at those early days.

That startup capital was enough to get Loop Energy through its first two years, where now, in a company that employs 40-plus people, it would run out in 20 days.

Leger also chuckles when he looks back at the early business plans he drew up, calling them hilarious.

They were going to build a fuel cell for $60,000 and within three or four years they’d have one in a vehicle.

It was funny and naive, he says now.

But with the startup capital fueling their efforts, they had started down the path towards something big. They were seeing improvements in their design, despite being, according to Leger, unsophisticated. They were still learning about things they would come to know well, like compression and humidification, yet they were still getting great results.

It didn’t make sense. But it did make sense, if that makes sense. David was seeing too much evidence that the way they were building their fuel cell was closer to the way it should be done.

As Leger likes to say, he never ran into a reason to stop, and by 2004 Loop Energy was close to something even he hadn’t dared to consider.

They had a chance to optimize a fuel cell.

Leger likened it to the Venturi tube, just a little tube in a carburetor that transformed the auto engine into a far more efficient and powerful thing.

“We might have the Venturi tube equivalent in a fuel cell,” he mused.

By 2005, with key contributions from the engineering team, including that of Chilliwack born Greg Montie whose father owns Montie’s Small Engines, they had officially filed a patent on their ‘eFlow’ technology, and Loop Energy had a decision to make.

Continue their pursuit of a fuel-cell powered electric motor, or focus on the fuel cell alone.

“Well, in order to build the motor we need the fuel cell, so that tells us what we need to do,” Leger suggested to the Loop Energy board.

RELATED: Fuel cell company that started in Chilliwack about to go public on the Toronto Stock Exchange

RELATED: Clean energy one of Canada’s fastest-growing industries

He also knew they had to keep hitting new points of credibility, or they would quickly become old news. And that’s kinda sorta what happened. Loop Energy didn’t become old news, but with the fuel cell industry as a whole did.

Vancouver-based Ballard Power led the fuel cell hype train in the early 2000s. They had the backing of Daimler and Ford, and statements were being made that there would be 100,000 electric vehicles fueled by Ballard fuel cells on the road by 2003.

Ballard’s stock went through the roof, but it was a case of over-promising and under-delivering.

Thousands of electric cars didn’t hit the highways, and by 2006 the hype train had stalled, interest in fuel cells had waned considerably and Leger was having trouble getting more capital for Loop Energy. At a 2006 board meeting, the decision was made to put the company into hibernation.

They could have kept going, but at a high cost, giving away 80 per cent of the company just to fund another year.

“The company shouldn’t be alive just to pay paycheques,” Leger thought. “It should be alive because it’s going towards being successful.”

The lights were shut off, and while the dream wasn’t dead, it was on hold.

For how long? No one knew.

See www.theprogress.com for part three in this three-part series on March 3.

Business and Industrialchilliwack

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

Loop Energy had humble beginnings in Chilliwack, but the company’s 50kW fuel cell module will soon be used to power 300 municipal buses in city of Nanjing, China. (Loop Energy photo)

Loop Energy had humble beginnings in Chilliwack, but the company’s 50kW fuel cell module will soon be used to power 300 municipal buses in city of Nanjing, China. (Loop Energy photo)

It doesn’t look like much, but this is the prototype of Loop Energy’s breakthrough fuel cell circa 2001. (Loop Energy photo)

It doesn’t look like much, but this is the prototype of Loop Energy’s breakthrough fuel cell circa 2001. (Loop Energy photo)

Just Posted

Matthew Balogh was last seen in Abbotsford on Sunday, April 18 at 10 a.m.
Police seek help in locating missing 17-year-old in Abbotsford

Matthew Balogh was last seen at 10 a.m. on Sunday, April 18

Michael Colmant, a former manager of Abbotsford International Airport, was killed in a hit-and-run in Washington state while he was riding his bicycle.
Abbotsford man dies in hit-and-run while cycling in Washington

Seattle police still searching for driver of vehicle that killed Michael Colmant

..
Abbotsford nurse at ‘breaking point’ pleads with public to take COVID-19 seriously

Instagram post urges general population to stay home, wear a mask and get vaccinated

The Independent Investigations Office of BC (IIO) (File Photo)
IIO investigating after man seriously injured by police dog during Abbotsford arrest

Independent Investigations Office looking into incident from March 6 in 3700 block of Davie Street

A pack of three T-Rexes were reportedly seen shopping near Winners at the Junction Shopping Centre in Mission. Facebook photo / Carla Jayne.
Pack of T-Rexes spotted prowling, shopping in Mission

Sightings may confirm recent fossil evidence suggesting that tyrannosaurs lived in packs

FILE – NDP Leader John Horgan, right, and local candidate Mike Farnworth greet one another with an elbow bump during a campaign stop in Coquitlam, B.C., on Friday, September 25, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. won’t be using random individual road stops to enforce travel rules: Safety Minister

Minister Mike Farnworth says travel checks only being considered at major highway junctions, ferry ports

Cash seized in a 2018 RCMP drug bust in the Lower Mainland. (Contributed)
Kelowna RCMP-led drug investigation nets charges for 4 in Lower Mainland

Cops seized 12 kilograms of MDMA and $380K executing several search warrants in the Lower Mainland in 2018

Welcome to your park sign marks the spot where 84th Avenue will continue east from King George Boulevard to 140th Street as part of a $13 million road project. (Photo: Tom Zytaruk)
Road Rage: Opposition mounts anew to Surrey’s Bear Creek traffic plan

Same place, same project, same fight as Surrey prepares once again to connect 84th Avenue between King George and 140th Street in Newton

A native-to-B.C. wild queen bee (bombus melanopygus for those in the know) feeds on a periwinkle flower. (Submitted/Sarah Johnson, Native Bee Society of BC)
B.C.’s wild bees need messy gardens to survive

The year-long nesting period makes habitat a primary concern for wild bees

FILE – Health-care workers wave to people clapping and yelling thank you to the frontline workers during the 7 p.m.-tribute outside the Lions Gate Hospital in North Vancouver, B.C. Wednesday, April 8, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. nurses issue plea for all to follow health orders as hospitalizations spike

Nurses worried about strain COVID-19 is having on hospital capacity, care

University of Victoria rowing coach Barney Williams is photographed in the stands during the Greater Victoria Invitational at CARSA Performance Gym at the University of Victoria in Victoria, B.C., on Friday, November 29, 2019. The University of Victoria says Williams has resigned effective immediately. (THE CANADIAN PRESS/Chad Hipolito)
University of Victoria women’s rowing coach resigns by mutual agreement

Lawsuit filed last summer accused Barney Williams of verbal abuse

Former B.C. premier Christy Clark. (Black Press Media files)
Former B.C. premier to testify at money laundering hearing today

Attorney General David Eby has been added to the witness list as well

Selina Robinson is shown in Coquitlam, B.C., on Friday November 17, 2017. British Columbia’s finance minister says her professional training as a family therapist helped her develop the New Democrat government’s first budget during the COVID-19 pandemic, which she will table Tuesday. THE CANADIAN PRESS/Darryl Dyck
B.C. to table budget that’s expected to deal with COVID-19 pandemic and beyond

Robinson released a fiscal update last December that said the impact of the pandemic on B.C.’s economy was uncertain

Most Read