Jessica Frison’s family has been pumping gas in the Niagara area of Ontario for more than five decades. But as electric vehicles increasingly take over Canada’s roads, some experts warn that the days of its industry are numbered.
However, Friesen is not indifferent. Since her grandfather opened the first Gales Gas Bar location in 1967, the family business has grown and adapted over the decades and now includes 14 gas stations, as well as convenience stores and fuel trucks.
“I feel we have a very good future ahead of us,” Friesen, the company’s third-generation owner and CEO, told CBC News.
“One of the reasons we are still independent is that we have managed to diversify our business.”
Industry observers say diversification will be the key to survival for decades to come, with the federal government requiring all new cars and vans sold in the country to be zero-emission (ZEV) vehicles by 2035.
An electric vehicle is charging in Ottawa on April 14. There are more than 5,000 charging stations for electric vehicles in Canada, and many companies are introducing new networks with thousands of other charging points. (Francis Ferland / CBC)
These vehicles include electric batteries (which require recharging), hydrogen fuel cells (which run on hydrogen, currently only available at a limited number of petrol stations in Canada) and hybrid electric (which can run on electricity or gas).
Zero-emission vehicles are currently a small but growing part of the Canadian vehicle market. Of the 1.64 million new vehicles registered in 2021, just over 86,000 – or 5.2% – are ZEVs, up from 3.5% in 2020, according to the federal government. published in late April.
This is a jump from a decade earlier: in 2011, only 518 zero-emission vehicles were registered in Canada – 0.03% of new registrations in the same year.
Growing market share is coming as more and more ZEV options are launched in Canada, in tandem with the government’s increased focus on tackling climate change – including by reducing transport emissions, which account for about a quarter of CO2 emissions. in Canada.
The federal government’s strategy will not mean a total ban on gas cars. In 2035, you will still be able to buy one that is used, or you can buy a new hybrid that turns on and continue to run gas in the tank.
But that would still mean lower oil demand – and a big dent in gas station profits if they don’t find a new model.
New pain in the pumps
Research by international consultants paints a vague picture for the future of gas stations. Boston Consulting Group warns that up to 80% of gas stations may be unprofitable by 2035, while Sia Partners predicts that 43% of gas stations in Europe will be out of operation by 2050.
A motorist filled the tank of his car at a gas station in Vancouver on March 4. Currently, drivers of electric vehicles may need to charge their vehicles for 30 minutes or more at a charging station – much longer than necessary to fill a gas tank. (Ben Nelms / CBC)
Both consulting firms say the survival of the industry will depend on inventing and adapting to what prospective customers want – everything from better food options to fully automated cash registers and, as expected, charging stations for electric vehicles. , of which there are currently more than 5,000 in Canada.
Canada’s major fuel companies have already begun this change by building their own refueling networks across the country – many of which will be located at existing petrol stations.
These sites will have to rethink their business model, as customers are forced to spend more time at stations waiting for cars to load. Charging the battery of an electric vehicle up to 80% can take 15 to 45 minutes or more – depending on how low the battery is and the capacity of the charger.
As a result, gas station operators are considering whether the driver wants to spend that time in a store, sitting down for food, shopping for groceries, or just waiting for him in his car.
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Parkland Corp., which owns Pioneer, Chevron and Ultramar, is considering just that as it deploys its own network of 25 EV chargers on the highways between Vancouver and Calgary.
The Calgary-based company recently sponsored a competition to design future charging stations. The winner was a modular design, the size of which can be increased or decreased depending on the location. It has indoor and outdoor spaces, durable materials and solar panels – far from the current look of most gas stations.
This design, titled “More with Less” by Scottish architect James Sylvester, won a competition to design the electric petrol station of the future on 1 February. The competition was led by Electric Autonomy Canada and sponsored by the fuel company Parkland Corp. (James Sylvester / Electric Autonomy Canada)
“[EV drivers] they will want a little space to stand up and stretch their legs and breathe fresh air while on a longer trip, ”said Darren Smart, Parkland’s senior vice president of strategy and corporate development.
“We’ve come up with a few different things that might be of interest, but I think that will also develop over time.”
Petro-Canada, which already has 57 charging stations running on the Trans-Canadian highway from Vancouver Island to Halifax, is piloting a variety of amenities to see what attracts customers.
In Cookstown, Ont., About 80 kilometers north of Toronto, for example, drivers can sit inside and watch TV, eat a burger in the outer courtyard or take their furry friend to the dog park on site.
A dog park is one of the facilities Petro-Canada is piloting at its electric vehicle charging station in Cookstown, Ont., North of Toronto, to assess customer interest. (Suncor Energy)
“The thought was: We’re building a new site, let’s throw everything away [our concepts] right away, so we can judge who we really think customers need, ”said Patrick Richie, vice president of sales and marketing at Suncor Energy, which owns Petro-Canada.
Build it and drivers may come
Even when EV charging networks appear, the question arises as to how much will be used in the future, given that nearly 90% of drivers “always” or “often” charge at home, according to a US study more than 9,000 owners of battery-powered and hybrid electric vehicles in October and November 2020
Research by the International Council on Clean Transport, an environmental think tank, estimates that by 2035, Quebec will need about 79,000 public chargers – compared to 2.3 million chargers at home and 44,000 at work. .
But many people living in apartments and condominiums will not have easy access to a parking space for a charger – and this is a market that fuel companies hope to use.
In fact, says Richie, some city gas stations could be completely replaced by EV refueling stations if it makes good business sense.
An electric charging station is pictured in Burnaby, British Columbia, in October 2020. While most drivers will charge their electric vehicles at home, people living in apartments and flats may not have easy access to parking nearby. to vehicle charging stations. (Ben Nelms / CBC)
“In Vancouver, we have some properties that we’re looking at, where … 10 years ago, we would have said, ‘This has to be sold.’ There is no point in using this property in this way. “But now we say:” We need to install chargers for electric cars, because there is an apartment next door. “
Finding a room for a longer stay
Meanwhile, owners of smaller gas stations need to consider whether – or when – they need to convert valuable front yard space into electric charging stations, said Rob Hoffman, director of government and stakeholder relations in Western Canada for the Canadian Fuels Association.
“The main concerns right now are whether this will be economic?” he said. “If we set up charging stations, people will usually have to be there for 30 or 60 minutes, or maybe more. Do we have room for these people?”
Electric vehicle maker Tesla is building its own charging network across Canada, including this charging station in Markham, Ont., Shown in April 2020 (Frank Gunn / The Canadian Press)
For Friesen, it’s still not worth adding electric car chargers, as there is no demand, but she says she will continue to consider allocating space as the market changes in the coming years.
“While I’m renovating a site, it’s definitely something I have a certain area for.”
With that in mind, she says she is optimistic that the family business will thrive if and when her teenage children take over.
“I would like to say that one day the Gales will be run by the fourth generation, but that depends on them,” Friesen said. “But I’m certainly setting up this company with the best of intentions to get them on the right foot.”
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