“Our highways have a fundamental limit to the number of vehicles they can support”

For Sebastien Gendron and Ryan Janzen, the future of transportation is ultra-fast and fossil-free – the rest of the world just needs to join in.

“Our highways and roads have a fundamental limit to the number of vehicles they can support,” says Janzen. “The world needs real hardware innovations.”

Since TransPod’s founding in 2015, the duo has worked to bring their vision of metro freight and passenger transportation to North America and beyond. While the Toronto-based company is in talks with governments in other regions, including Texas, it may first realize its plans in Alberta, where it has a hyperloop line between Calgary and Edmonton. Transpod’s system uses a vehicle that is something like a hybrid between a high-speed train and a jet plane and will be able to operate at speeds of 1,000 kilometers per hour by floating through a vacuum tube. That could cut travel time between the two cities to just 45 minutes. The system is also designed to be compatible with renewable energy sources and the company estimates the Alberta line could help the province cut 636,000 tons of CO2 emissions every year.

Here, Gendron and Janzen discuss why we’ve reached the end of the road for highways, how Transpod has won over skeptical investors, and why it’s time for hyperloops.

How does TransPod work? It looks so futuristic.

Gendron: The concept has been around for many years – we’ve seen some early designs from the 1900’s. The concept itself is quite simple: a vehicle travels in a tube that you have removed most of the air from. This way you prevent aerodynamic friction. With a magnetic type levitation and propulsion system, the vehicle can theoretically reach almost the same speed as an airplane.

What is the biggest difficulty in a project like this?

Gendron: There are many: the political challenge, the financial challenge and the technical challenge. Our technical roadmap is quite strong and compelling, so investors who look at it agree that our approach makes sense. But the biggest challenge is the same one that humans have faced throughout history: developing something new.

In the beginning we received feedback that Canada is risk averse. And I have to say it’s true, but it’s a human issue. We face the same challenge in Europe, in the Middle East, sometimes even in the US. If you look at the history of an innovation, it’s a challenge to convince governments to support it.

There are other hyperloops nearby. What’s innovative about TransPod?

Janzen: The TransPod vehicle floats without touching the guideway. And the most important innovation is that we power the vehicle using plasma. Think back to your primary school days. The teacher would say, there is solid, liquid and gas – those are the states of matter. But then there is also plasma. That’s what we see in the sun and in the northern lights. We managed to harness and control the power of this natural phenomenon within the vehicle, enabling it to travel at those extremely high speeds.

Gendron: Our innovation has two aspects: the technology that allows our vehicle to travel at the same speed as an airplane, and our economic model that develops these lines without taxpayer money. In terms of the business model, we wanted to make sure we don’t rely on government grants to build that infrastructure. So the value proposition that we share with governments is that when we want to build a line, we can fund it with the private sector, which will save the taxpayer a lot of money.

How did the Alberta Project come about?

Gendron: When we started the company, our approach was like many startups looking to raise money: we reached out to venture capitalists and private investors. It took us some time to understand that our project was different. It’s capital intensive and high tech – essentially it has all the drawbacks investors don’t want to see.

In 2020, we signed a Memorandum of Understanding with the Alberta Government. The deal was simple: It was, “If TransPod doesn’t need government money and is willing to attract private investment to the county, we can support you in developing your project.”

After that, we started to get some traction in financials, leading up to our announcement last March Broughton capital, a private financial entity from the UK, has committed to provide the first half of a half billion dollars for the project. So now we’re seeing a snowball effect where money attracts money. We now have a clear path to commercialization.

In late 2022, the Dallas Region approved a first line to connect Dallas to Arlington. Since that’s a relatively short stretch, we’re taking the project to the state government level to extend the line to St. Antonio.

Did you celebrate raising over half a billion in funding?

Gendron: Yes and no. After all these years we are careful. Even if everything is signed, until the money is in the bank account, it is not a foregone conclusion. There is a way forward with funding. But the work is complex. We still have to get permission for the building permit and land acquisition.

Where are you with the Alberta project?

Gendron: The half-billion dollar funding is for the construction of the first three- to ten-mile segment between Edmonton Airport and the southern end of the city. This will demonstrate that our system is safe to transport passengers and goods. This year the work is mainly administrative: getting building permits, public consultations, land acquisition. There is also the cost infrastructure and estimates. We aim to complete all of that this year, with the goal of starting construction in 2024. The hope is that that line will run at the end of 2026. And at the same time, we need to develop the technology so that when that first segment is done, we have a full-scale vehicle ready to be tested.

What do you hope the impact of your technology will be?

Gendron: By reducing distances you can cut costs, improve safety, improve everyone’s lives and create a more sustainable mode of transport. If we have that system between Calgary and Edmonton, which reduces the travel time by two hours, you can save time during the day instead of being stuck in traffic. It is protected against weather elements. It is safer than an airplane because it is on the ground and you have no problem crossing.

Janzen: Our highways and roads have a fundamental limit to the number of vehicles they can support: the world needs real hardware innovations. We really need to look at breakthroughs.

MaRS commissioned photographer Jenna Marie Wakani to photograph the thinkers, entrepreneurs and investors behind some of Canada’s most exciting companies. View the full series of portraits here.

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