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.
The most captivating piece of this entire story is that dynaCERT trades at a market cap of just $78.4 million — a company with a clear-cut competitive advantage and a massive total addressable market. Since the start of 2024, dynaCERT is up 13%, compared to a mere 5% by the Russell 2000.
In this article, you’ll examine dynaCERT’s technology, business model, second-quarter financials, and recent developments.
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, improving the combustion process.
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 burn fuel more cleanly and efficiently, achieving an average fuel economy improvement of 10% to 15%.
Here is a complete breakdown of HydraGEN™ 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%
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.
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.
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. 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.
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, HydraGEN™ technology is available in 55 countries, supported by a network of 48 qualified dealers and agents. This 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.
HydraGEN™ units are priced at around C$8,850 (including installation), with production costs at roughly 50% of the wholesale price. Once installed, they create cost savings of about C$0.07 per kilometre, leading to a payback period of approximately 7.4 months.
Beyond unit sales, dynaCERT is poised to generate recurring revenue through two additional streams:
- HydraLytica — a cloud-based data analytics platform offering automated reporting and fleet-wide tracking of fuel savings, emission reductions, and carbon credits. It also reduces maintenance costs through remote monitoring of every HydraGEN™ unit’s performance.
- Verified Carbon Units (VCUs) — once Verra’s Verified Carbon Credit Standard (VCS) approval is secured, dynaCERT will be able to generate VCUs through its customers, adding a significant revenue stream as carbon credits are projected 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 is its 15% stake in Cipher Neutron, 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 lower capex, greater sustainability, and higher efficiency — making them the premium product in the market.
Cipher Neutron has already made significant commercial strides, 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 according to plan, Cipher Neutron is projecting approximately $2.4 billion in sales after ten years — making this a potentially valuable asset for dynaCERT shareholders.
dynaCERT’s Second Quarter
Q2 marks the beginning of a new commercial phase for dynaCERT. With its technology set for mass production, the time has come for the world to realize its potential.
In Q2 2024, dynaCERT achieved revenue of $785.9 thousand, up 448.21% year-over-year, while recording a total operating loss of $2.7 million. While the company has yet to break even, it recently announced an oversubscribed private placement, raising total proceeds of $3.0 million.
Adding to the positive momentum, Simply Green Distributors placed a follow-up order for 84 HG1 HydraGEN™ units, demonstrating growing customer demand. Together, this additional capital and increasing commercial traction should provide dynaCERT with the runway to pursue its ambitions and solidify its position in the marketplace.
The combination of improving financial conditions and clear-cut competitive advantages sets dynaCERT up for success in the foreseeable future.
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 is 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 is 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 dynacert.com.
Disclosure / Disclaimer: Micro Math Capital and its owners currently hold shares in dynaCERT stock (~$15,357) and are compensated by Investor Relations Services (~$2,562). Micro Math Capital and its owners reserve the right to buy and sell shares without further notice. Information herein is not investment advice. Please do your own research.
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