One of our engineers said that is more than 500W at the wheel (if sustained), probably drawing in excess of 17A from the battery to account for heat loss.
He's partially right, but it depends on which bike and motor you have. The 250w Bafang, like in your bikes would have a maximum efficiency of about 80%, so going up a slight hill at 15mph producing 400w of power, it would be drawing 400/40v *100/80 amps. (power/volts =amps), which would be 12.5 amps from the battery. When it goes up a steeper hill and slows down to 8 mph, the efficiency drops to about 60%, so the current from the battery would be 400/40 *100/60 = 17 amps (if the controller allows it). For 500w, it would be about 20 amps.
The OP has a Tonaro with crank drive so that the motor speed can be increased to a more efficient RPM at low speed, so current drawn might be back to 12.5 amps, but it depends on the exact speed that the motor is spinning. More torque is produced at lower RPM, which gives more climbing power, but is not so efficient in it's use of battery power.
These calculations don't take into consideration the controller efficiency, so actual currents from the battery would be a bit highr.