There are few, if any, sustainable energy plays like dynaCERT (TSX: DYA)(OTC: DYFSF)(FRA: DMJ). The company achieved a breakthrough in carbon emissions reduction technology and it is revolutionizing the internal combustion engine market.
When analyzing the technical results achieved by dynaCERT’s HydraGEN™, it seems like a no-brainer for customers. Those who adopt this technology, achieve significant cost savings and a major reduction in the pollutants emitted by their vehicles and equipment. Moreover, dynaCERT customers can create additional revenue by tapping into the massive carbon credit market that the company is unlocking.
However, the most captivating piece of this entire story is that dynaCERT trades at a market cap of just $78.4 million. This is coming from a company with a clear-cut competitive advantage and a massive total addressable market.
The good news is that investors seem to be waking up. Since the start of 2024, dynaCERT is up 13%, compared to a mere 5% by the Russell 2000.
The decision for you now is whether to explore this business on the ground floor or once everyone else catches on to its near-limitless potential.
In this article, you’ll examine dynaCERT’s technology, business model, second-quarter financials, and recent developments. Let’s dive in.
How HydraGEN™ Works
At the heart of dynaCERT’s innovation is the HydraGEN™ technology, which generates pure hydrogen and oxygen on demand from distilled water. This mixture is fed directly into the engine’s air intake, thus improving the combustion process.
However, unlike traditional filtration systems, HydraGEN™ integrates directly with the engine’s computer, adjusting gas flow rates in real-time to ensure optimal combustion efficiency.
The result? Engines that use HydraGEN™ burn fuel more cleanly and efficiently, achieving an average fuel economy improvement of 10% to 15%. Even more impressive is the significant reduction in harmful emissions achieved by this technology.
Here is a complete breakdown of HydraGEN’s™ performance results:
- Up to 10% reduction in fuel consumption
- Up to 88.7% reduction in NOx emissions
- Up to 46.7% reduction in CO emissions
- Up to 9.6% reduction in CO2 emissions
- Up to 57.1% reduction in THC emissions
- Up to 55.3% reduction in particulate matter (no black smoke)
- Increased engine power and torque
- Extended engine and oil life, leading to lower maintenance costs
- Up to 60% reduction in Diesel Exhaust Fluid (DEF) usage
- Reduction in Diesel Particulate Filter (DPF) replacement period by at least 33%
These benefits showcase the technological prowess of dynaCERT’s innovation in the hydrogen energy market. More importantly, it highlights the positive impact that HydraGEN™ can have on our planet.
Internal combustion engines are responsible for approximately 10% of global greenhouse gas emissions, or 1.5 billion tons annually. The potential to cut these emissions by 50% or more marks a significant step towards climate stability and ecosystem sustainability.
As the adoption of HydraGEN™ grows exponentially, we can all expect to benefit greatly from its influence. So what did it take to bring this technology to fruition?
dynaCERT’s Legacy of Innovation and Investment
dynaCERT’s journey to perfecting HydraGEN™ technology has been extensive, with nearly $100 million invested over 20 years in research and development. The company’s commitment to innovation is further demonstrated by its portfolio of 27 world patents, safeguarding its technology from replication.
Additionally, HydraGEN™ has undergone rigorous testing and certification by prestigious institutions worldwide, including:
- University of Ontario Institute of Technology (UOIT)
- The PIT Group in Canada
- Continental–EMITEC
- The International Center for Automotive Technology in India
- ABE Homologation from KBA, the German Transport Ministry
Together, the company’s unique technology, lead time to development, global certification, and 27 patents provide it with a massive competitive advantage over its competitors. It is expected to take years before someone else releases a product of similar caliber, and that doesn’t account for the relationships dynaCERT is building with customers along the way.
So how is the company capitalizing?
The dynaCERT Business Model
With over 1.3 billion internal combustion engines in operation worldwide and more than 100 million new units produced annually, dynaCERT’s HydraGEN™ offers a scalable solution across various industries, including transportation, agriculture, construction, and mining.
Today, dynaCERT’s HydraGEN™ technology is available in 55 countries, supported by a network of 48 qualified dealers and agents. This robust distribution network allows the company to focus on product development and assembly at its Toronto-based manufacturing facilities while ensuring global reach and customer support.
From a customer perspective, HydraGEN™ units are priced at around C$8,850 (including installation), with production costs at roughly 50% of the wholesale price. Once installed HydraGENs™ create cost savings of about C$0.07 per kilometer, leading to a payback period of about 7.4 months.
Beyond unit sales, dynaCERT is poised to generate recurring revenue through subscriptions to its proprietary data analytics platform, HydraLytica, and through capital earned from Verified Carbon Units.
HydraLytica, a cloud-based software, offers automated reporting and analytics that track fuel savings, emission reductions, and carbon credits fleet-wide. This platform not only enhances customer experience by providing valuable insights but also reduces maintenance costs by enabling remote monitoring of each HydraGEN™ unit’s performance.
On the other hand, Verra’s Verified Carbon Credit Standard (VCS) is considered the world’s premium benchmark in the carbon credit market. Once secured, this will allow dynaCERT to generate Verified Carbon Units (VCUs) through its customers, adding an additional revenue stream to the mix; this will be significant as carbon credits are expected to reach $238 per ton by 2050.
Combined, these revenue streams will create a sustainable and diversified business that should stand the test of time.
An Investment in Cipher Neutron
Another key part of dynaCERT’s business to take note of is its 15% stake in Cipher Neutron. Cipher Neutron is a green hydrogen producer leveraging its Anion Exchange Membrane (AEM) electrolyzers.
AEM electrolyzers offer many benefits over traditional PEM electrolysis and Alkaline electrolysis methods including a lower capex, greater sustainability, and higher efficiency, making them the premium product in the market.
So far, Cipher Neutron has made significant strides on the commercial end, including the successful shipment of one of the world’s largest AEM electrolyzer single stacks, and is on track to develop 250 kW AEM electrolyzer stacks around Q1 2025; this includes a contract with Simon Fraser University to produce two of its 250 kW stacks.
If everything goes well, Cipher Neutron is projecting that it could earn roughly $2.4 billion in sales after ten years, making this a valuable asset for dynaCERT.
Here is a complete breakdown of its revenue projections over the coming years…
dynaCERT’s Second Quarter
dyanCERT’s second quarter marks the beginning of a new commercial phase for the company. With its technology set for mass production, the time has come for the world to realize its potential.
In Q2, dynaCERT achieved revenue of $785.9 thousand, up 448.21% YoY, while recording a total operating loss of $2.7 million.
While it has yet to break even, the exciting thing is that the company recently announced an oversubscription to its private placement, raising total proceeds of $3.0 million. This, plus increasing demand from customers (i.e. Simply Green Distributors follow-up order for 84 HG1 HydraGEN™ units) should provide it with the necessary capital to pursue its ambitions and solidify its position in the marketplace.
Overall, the combination of improving financial conditions and clear-cut competitive advantages set dynaCERT up for success in the foreseeable future. With the company ready for its next phase of development, we are excited to see how the business performs in the coming quarters.
Final Thoughts
In the ever-evolving landscape of sustainable energy, dynaCERT (TSX: DYA)(OTC: DYFSF)(FRA: DMJ) stands out as a rare gem. With its groundbreaking HydraGEN™ technology, the company is not just reducing carbon emissions; it’s revolutionizing the internal combustion engine industry.
For investors, this presents a unique opportunity. dynaCERT is on the cusp of something big, with a competitive advantage that few can match and a market that is ready to embrace its innovations. The question now is whether you will explore this opportunity while it’s still under the radar or wait until the rest of the world figures it out.
To learn more about dynaCERT and its cutting-edge technology, visit their website at dynacert.com.
Disclosure
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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