Micro Math Capital

There has never been a more imposing threat to civilization than climate change. That is why companies like dynaCERT (TSX: DYA)(OTC: DYFSF)(FRA: DMJ) must continue to lead in the development of carbon emissions reduction technology.

dynaCERT’s hardware is transforming the internal combustion engine market by significantly reducing greenhouse gas emissions and enhancing their fuel economy. Its HydraGEN™ unit reduces up to 88.7% of NOx, 46.7% of CO, and 9.6% of CO2 emissions while improving engine power, extending engine life, and reducing fuel consumption by up to 10%. This is a win-win for any organization using internal combustion engines (1.3 billion engines worldwide) bringing them enhanced performance while minimizing their carbon footprint. 

Better yet, dynaCERT customers have the potential to earn money when using HydraGEN™ technology due to the various carbon credit initiatives throughout the globe. With governments imposing new carbon taxes and the carbon credit market expected to generate $1.1 trillion annually by 2050, there is virtually no limit to the value this company can create.

Keep in mind that dynaCERT has been developing this technology for over twenty years, investing nearly $100 million to achieve these results. The company’s management team anticipated this paradigm shift well before it was trendy and their moment to capitalize has arrived. Today, only a few hydrogen tech companies reduce machine operators’ GHG emissions by +50% while improving engine longevity and performance. dynaCERT is one of them.

If you value sustainable businesses with a clear-cut competitive advantage, you must explore what dynaCERT has to offer.

Understanding dynaCERT’s Business

dynaCERT is revolutionizing the internal combustion engine market with its groundbreaking HydraGEN™ electrolysis system. 

HydraGEN™ technology works by producing on-demand pure hydrogen and pure oxygen from distilled water that is separated and fed through the air intake of an internal combustion engine. This process occurs using its fully computerized system that coordinates with an engine’s computer to determine the optimal gas flow rate in real-time. The important thing to note is that this occurs right at the combustion, and is not a filtration system, meaning that the homogenization process happens directly at the source.

By leveraging HydraGEN™ technology, engines burn fuel more efficiently and operate more cleanly, leading to an improved fuel economy of 10% to 15% on average. More impressive, these devices reduce most toxic gas emissions by more than 50%.

The performance results speak for themselves:

  • Up to a 10% reduction in Fuel Consumption
  • Up to an 88.7% reduction in NOx emissions
  • Up to a 46.7% reduction in CO emissions
  • Up to a 9.6% reduction in CO2 emissions
  • Up to a 57.1% reduction in THC emissions
  • Up to a 55.3% reduction in particulate matter (no black smoke)
  • Increased engine power and torque
  • Extended engine and oil life (lower maintenance costs)
  • Up to 60% reduction of Diesel Exhaust Fluid (DEF) usage
  • Reduction of Diesel Particulate Filter (DPF) replacement period by at least 33%

This breakthrough in hydrogen technology is monumental because internal combustion engines produce roughly 10% or 1.5 billion tons of GHG emissions per year. If machine operators can reduce their GHG emissions by 50% or more, this will have a major impact on the health of our planet, improving climate stability and the sustainability of ecosystems.

To perfect the HydraGEN™ technology, dynaCERT invested roughly $100 million over 20 years in research and development. This includes 27 world patents that protect it from product replication, as well as testing and certification from some of the world’s most prestigious institutions:

  • UOIT (University of Ontario Institute of Technology)
  • The PIT Group in Canada
  • Continental–EMITEC
  • The International Center for Automotive Technology in India
  • ABE Homologation from KBA (Kraftfahrt-Bundesamt, the Transport Ministry of Germany).

The company is also in the final stages of receiving Verra’s highly coveted Verified Carbon Credit Standard (VCS). Verra is the premier organization in the carbon credit market. With their validation, dynaCERT can generate Verra’s Verified Carbon Units (VCUs) through their customers. This provides both parties with an additional source of income at no additional cost; according to BloombergNEF, carbon credits could reach $238/Ton by 2050.

Overall, the combination of proprietary technology, global certification, and top-tier carbon credit verification makes dynaCERT a force to be reckoned with. There is virtually no direct competitor and the company is years ahead of anyone replicating its technology.

With HydraGEN™ technology adoption set to expand exponentially, let’s see how dynaCERT plans to market its patented product.

How Does dynaCERT Make Money?

There are over 1.3 billion internal combustion engines worldwide with more than 100 million units produced annually. This includes buses, class 8 trucks, power generators, farming, construction and mining equipment, and more; dynaCERT offers a solution for all. 

Today, the company serves customers in 55 countries worldwide using a network of 48 qualified dealers and agents. These dealers provide sales, marketing, and servicing services, allowing dynaCERT to focus on product assembly and development in its Toronto-based manufacturing facilities.

dynaCERT sells HydraGEN™ units for roughly C$8,850 (w/ installation), though it depends on the location, engine size, vehicle, and voltage. Each unit costs approximately 50% of its wholesale price to produce, equating to an impressive gross margin of about 100%.

From a customer standpoint, HydraGEN™ technology produces cost savings of about C$0.08 per km. This leads to a payback period of just 8.25 months, proving its systems’ economic feasibility and attractiveness.

In addition to HydraGEN™units, dynaCERT is expected to generate recurring revenue from subscriptions to its in-house data analytics platform, HydraLytica, as well as capital earned from the Verified Carbon Units mentioned previously.

HydraLytica is a cloud-based software that is accessible anywhere with an internet connection. It provides fully automated reporting and analytics that includes fleet-wide tracking of fuel savings, emission reduction, and carbon credits generated. Moreover, it reduces the amount spent on maintenance costs as dynaCERT and its customers can track the performance of every HydraGEN™ unit from anywhere in the world.

Together, this produces a comprehensive solution that enhances customer experience and performance while enabling dynaCERT to run a sustainable business. Once approved, Verra’s VCUs will add another lucrative revenue stream to its business model.

All-In on dynaCERT

In our previous article, we outlined how CEO and Chairman, Jim Payne’s passion for dynaCERT helped it overcome pandemic closures and early development struggles to become the durable business it is today. As one of the company’s first investors and eventually its President and CEO in 2013, Jim’s conviction in its technology is a testament to the business model and investment opportunity at hand.

But Jim is not alone. Over the past month, dynaCERT added three distinguished members to its organization: Mr. Bernd Krueper, Dr. James Tansey, and Ms. Tanya Rowntree. 

Mr. Kreuper is a highly accomplished executive, offering over 30 years of experience in the automobile, off-highway, sustainable energy, power generation, and precision machining markets. He has held several critical roles at international organizations including Deputy Chairman of the German Engine Manufacturing Association, VDMA; CEO at Motorenfabrik Hatz GmbH; CEO of Hatz Components GmbH; a member of the Supervisory Board of Rolls-Royce Power Systems AG; and others. As dynaCERT’s new President, Bernd is expected to provide hands-on supervision and senior responsibilities leading the enterprise’s further development and international expansion. His experience driving profitable growth, performance increases, sustainable technology road mapping, and digital transformation will be a major asset to the company.

Dr. Tansey is one of the key thought leaders and advisors in the carbon markets, bringing more than 20 years of university research and private sector experience. He is presently the CEO and a Director of Carbon Done Right Developments (TSXV: KLX), a company focused on the development of carbon credits from nature-based solutions that has produced a portfolio of over 43 Mt worth of carbon credits to date. In addition, Dr. Tansey is an Associate Professor at the Sauder School of Business, University of BC, and the CEO and Founder of NatureBank Asset Management, one of the largest carbon development companies in Canada. This experience in the carbon markets will be pivotal as dynaCERT prepares to launch its Carbon Credit program shortly.

Lastly, Ms. Rowntree is an award-winning executive with over 25 years of experience in the investment industry. Her track record includes Vice President, Global Head of Client Success, and Capital Formation at TMX Group; Vice President of Corporate Sales at TSX Trust; and Managing Director at Navina Capital, among others. Additionally, Ms. Rowntree serves as Co-President of Women in ETFs (Canadian Chapter) and a Governance Committee Member of Women in ETFs (Global). These experiences have helped shape her into one of the leading figures in the financial industry. As a Director of dynaCERT, she is expected to provide the company with a wealth of knowledge in business development, sales, customer experience, and more.

With these three highly respected individuals joining the dynaCERT team, the company adds another level of technical expertise to its arsenal. More importantly, it highlights how these leading figures believe in the company’s hydrogen technology and are aligned with its mission to reduce the GHG emissions produced by internal combustion engines. Overall, we are very impressed with the leadership team dynaCERT has assembled for this next stage of its development.

Final Thoughts

There are few opportunities to invest in businesses whose products are intended to benefit all of humanity. Yet, dynaCERT’s (TSX: DYA)(OTC: DYFSF)(FRA: DMJ)  HydraGEN™ units are expected to play a key role in the reduction of greenhouse gas emissions worldwide.

Not only is this technology beneficial for the planet but it also enhances engine performance and durability for its customers while enabling them to generate additional revenue via Verified Carbon Credits. This creates a win-win opportunity for all, placing it in rare territory as a publicly traded company.

Moreover, dynaCERT is backed by 27 patents, global certification and recognition, $100 million invested, over 20 years of R&D, and a closely aligned management team, making it one of the most compelling investment opportunities in the market today. If you plan on capitalizing on the trillion-dollar carbon credit boom, you must keep this company on your radar.

To learn more about dynaCERT, check out its website here: www.dynacert.com

Disclosure/Disclaimer:

We are not brokers, investment, or financial advisers; you should not rely on the information herein as investment advice. If you are seeking personalized investment advice, please contact a qualified and registered broker, investment adviser, or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Micro Math Capital and its owners currently hold shares in dynaCERT stock, amounting to fifteen-thousand three-hundred fifty-seven dollars and are compensated by Investor Relations Services, amounting to two-thousand five-hundred sixty-two dollars. Micro Math Capital and its owners reserve the right to buy and sell shares in dynaCERT without further notice, which may impact the share price. Please do your own research before investing, including reading the companies’ public filings, press releases, and risk disclosures. The company provided information in this profile, extracted from public filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. The commentary and opinions in this article are our own, so please do your own research.

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