Technology Market Watch Journal
Sector Insight & Corporate Overviews
of Quality Technology Companies
Future article April 15, 2019:
dynaCERT Inc. Carbon Emission Reduction Technology -- Major Growth Trajectory
dynaCERT Inc.
(TSX-V: DYA) (OTCQB: DYFSF) (Frankfurt: DMJ)
Shares Outstanding: ~288 million
Recently Traded: ~CDN$0.33/share (TSX-V: DYA)
Current Market Capitalization: ~$95 million Canadian
Corporate Website: www.dynacert.com
dynaCERT is at the fore of the war on NOx
TUV testing of dynaCERT’s HydraGENTM technology in Germany yielded proven emission reductions in NOx of 88%, CO of 50% and particulate matter of 75%, all while increasing fuel-savings up to ~20%, providing better torque, and lowering maintenance costs -- results which are unmatched by any other current technology. NOx is extremely hazardous to people's health and to the environment, contributing to the formation of smog and acid rain, as well as deteriorating the earth's protective tropospheric ozone.
HG1 4.5T Unit & HG1 2.5T Unit targets diesel truck market & buses (class 6 - 8 engines).
HG2 Unit targets refrigeration container & light truck market; dynaCERT's HG2 unit is set to hit dealers in Q2-2019 targeting initially refrigerated trailers. The HG-2 unit is smaller than the HG-1 units and conceivably can be expanded to service smaller trucks, buses and smaller trucks commonly found outside of North America, such as in European countries and in India.
HG3 Unit targets large stationary power generator, marine, & rail market. (HG3 unit; 6,000hp - 30,000hp engines).
Carbon Credits -- dynaCERT has initiated the world-wide process of Carbon Credit applications for its HG Technology and engaged International Environmental Partners Limited of the UK to assist the Company in this regard.
Targeting 'off-grid' energy solutions; dynaCERT is leveraging its unique hydrogen production technology by marrying it with inputs from renewable energies (e.g. solar) to generate sustainable quantities of hydrogen to power fuel cell power stations (this program is currently in R&D with costs subsidized by grants).
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dynaCERT's HG technology was recently featured in Western Canada Highway News Letter - click to view [PDF].
"The major benefit for me is that I'm using less fuel, 3 L less per operating hour according to my Geotab, which is a 15.6% reduction for me. Also, while driving, the engine feels a lot cleaner, and rattles less. I like the way it runs, and it sounds smoother." - David Imhof, owner/operator
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CEO INTERVIEW:
Jay Taylor of Hard Money Advisors interviews Jim Payne, dynaCERT's CEO, regarding developments. Click here to listen to the February 5, 2019 interview which begins starting at the 17:30 minute mark. In the interview dynaCERT's CEO discusses how accelerated growth this 2019 will see the Company become cash flow positive, and more.
Valuation Commentary: dynaCERT Inc. (TSX-V: DYA) (OTCQB: DYFSF) (Frankfurt: DMJ) shares appear at the beginning of a major upside move as the market has only started to price in the reality of the magnitude developing for its HG technology. A move toward a $1billion+ market cap in 2019 is not unreasonable, especially considering the Company's advances in establishing its technology for tracking and trading carbon credits (see related March 26, 2019 news release entitled "dynaCERT Initiates Carbon Credit Applications for its HydraGEN™ Technology").
dynaCERT Inc. currently has a market cap of only ~C$95 million, miniscule compared to where the Company is headed; DYA.V’s valuation appears poised to rise dramatically as its HydraGENTM (HG) technology is increasingly being recognized globally as the single most effective and practical piece of equipment businesses and governments can adopt to meaningfully reduce greenhouse gases. In the later part of 2018 dynaCERT announced the results of official European TUV testing of it’s HG units, verifying emission reduction in NOx of ~55%+, CO of 50%, and particulate matter of 75%, all while saving fuel. TUV is facilitated by the Federal Motor Transport Authority in Germany which does testing in the EU, nothing can be installed on a vehicle without its testing and the subsequent ABE certification license. dynaCERT is expected to receive ABE certification soon, this will provide a significant catalyst for sales.
So impressive is the HydraGENTM technology dynaCERT is the Gold Medal winner of the prestigious 2018 Edison Award for Best New Product. Recent news such as the January 16, 2019 news of the Company achieving a milestone from the Government of India involving sizable initial orders from two of twenty nine government states, the December 20, 2018 decision by the government of Austria to proceed with a plan to equip all state-owned diesel-powered vehicles with HydraGENTM Technology, and the launching of HG technology for the mining industry with orders to service extra-large industrial equipment are examples of demand for the pragmatic greenhouse gas emission reduction solutions dynaCERT offers. They are the type of announcements this publication is anticipating to play-out with increasing frequency throughout 2019 from an array of institutions globally taking action on pollution.
Validation through both on-road and accredited 3rd party testing of dynaCERT’s HydraGEN™ Technology have produced results of;
1) 6% to 19.2% reduction in Fuel Consumption,
2) 18% to 46.1% reduction in NOx emissions,
3) 25% to 48.1% reduction in CO emissions,
4) 6% to 19.2% reduction in CO2 emissions,
5) 30% to 50.1% reduction in THC emissions,
6) At least 65% reduction in particulate matter (no black smoke),
7) Increased engine power and torque,
8) Extended engine and oil life (lower maintenance costs),
9) Reduction of Diesel Emission Fuel (DEF) usage by 40% to 60%,
10) Reduction of Diesel Particulate Filter (DPF) replacement period by at least 33%.
Technology that pays for itself: Noteworthy excerpt from Sept. 24, 2018 release regarding results, "While the dynamometer test showed a 8.9% fuel savings, separately, during the on-road break-in period after the baseline test, the on-board diagnostic (OBD) record of the 2018 MAN TGX 18-460 long haul truck with an HG1-45B showed a 20.1% average fuel savings for the 188 hours of tests, travelling through the mountainous terrain of southern Germany in a heavy load commercial operation."
Currently engineers and senior management of dynaCERT Inc. are in ongoing communication with OEMs Mercedes, VW, ManTruck, Volvo, Freightliner and others. There is serious interest in dynaCERT’s HG technology as new European regulations VECTO for emissions reduction came into effect on January 1, 2019 requiring all truck manufacturers to provide full emission testing on every new vehicle model in various load and road configurations. These tests then become the baseline from which each vehicle sold in Europe built in later years must improve upon.
As the trajectory for HG unit sales accelerates it won't take long for the economics to flourish, especially considering the healthy gross profit margins per unit and the fact there is a market with desperate need globally for millions of HG1 and HG2 units, capable of drastically cutting greenhouse gas emissions from diesel engines. Diesel engines are the lifeblood of all economies, and the size of the market potential is enormous with 100's of millions of diesel engines in use globally.
dynaCERT at the forefront of future carbon credits monetization
Synopsis of HG technology and its Smart-ECU controller: dynaCERT’s technology is packaged into a small compartment that fits on the side of a truck. dynaCERT calls their units ‘HydraGEN’ (TM) or ‘HG’ for short. The unit interfaces with the truck engine’s computer and uses electrolysis to turn distilled water into pure (elemental) H2 & pure O2 gases (individually), produced and injected on demand to enhance the burn, drastically cutting harmful emissions, all while lowering fuel costs. This whole process is controlled by a smart-ECU (the brains of the unit) which can record the fuel savings and emission reductions while in operation, and provide an audit trail, essentially a greenhouse gas tracking system with the ability to account for future carbon credits. David Bridge, one of the original developers from Virgin Mobile, and also formerly of Research in Motion (known for the Blackberry), is the brains behind dynaCERT’s Smart-ECU. The CERT in dynaCERT stands for “Combustion Emission Reduction Technology”.
With the ability to verify and log emission savings, dynaCERT is currently working with a group in the UK, experts on carbon credits, and is in the process of having the technology certified for carbon credits. Carbon credits are a huge commodity worldwide that is only just starting to catch on in North America. The plan is for dynaCERT’s Smart-ECU to monitor and eventually monetize carbon credits. dynaCERT has several related worldwide patents its CEO believes carbon credits will eventually be huge for both dynaCERT and the end users.
See related March 26, 2019 news release entitled "dynaCERT Initiates Carbon Credit Applications for its HydraGEN™ Technology".
Excerpt:
dynaCERT Initiates Carbon Credit Applications for its HydraGEN™ Technology
TORONTO, March 26, 2019 (GLOBE NEWSWIRE) -- dynaCERT Inc. (TSX VENTURE: DYA) (OTCQB: DYFSF) (FRA: DMJ) ("dynaCERT" or the "Company") is pleased to announce that it has initiated the world-wide process of Carbon Credit applications for its HydraGEN™ Technology and engaged International Environmental Partners Limited of the UK to assist the Company in this regard.
By reducing fuel consumption in diesel engines while at the same time reducing carbon emissions and other pollutants, the HydraGEN™ Technology can become very lucrative with the global market acceptance of carbon credits. For example, it is estimated that a Class 8 Truck travelling long haul routes can generate up to €$1500 per year (Cdn $2278/year) in carbon credits based on the current market price of €15/tonne of CO2. dynaCERT’s goal is to create a world-wide programme to enable any earned carbon credits to be shared with end-users of its HydraGEN™ Technology under a contractual subscription programme. To our knowledge, the only existing methodology today to measure and track carbon credits from diesel engines is dynaCERT’s HydraGEN™ Technology and our SMART ECU2 electronics and algorithms.
The first three steps of dynaCERT’s ground-breaking and innovative carbon credit monetizing programme have already been initiated and are as follows:
1- dynaCERT has created innovative proprietary software algorithms in its patent pending SMART ECU2 to track the creation of carbon credits, such as its “Systems and Methods for Tracking Greenhouse Gas Emissions Associated with an Entity” patent pending (see Press Release dated October 5, 2017). An International Patent application has also been filed. Mr. David Bridge leads the charge at dynaCERT in these accomplishments and continues to develop new electronic advancements related to our HydraGEN™ Technology.
2- dynaCERT has nominated to its advisory board successful FinTech entrepreneur Brian Semkiw, P. Eng. and has more recently engaged his organization to further develop software that will enable the tracking of carbon credits generated by dynaCERT’s HydraGEN™ Technology. In addition, Mr. Semkiw will oversee that such carbon credits be validated, audited and digitally accepted in international markets. (see Press Release dated March 1, 2018). Mr. Semkiw’s company, 3rdGP, is the world’s first third generation processing payments company with emphasis on Blockchain and IOT payments processing solutions.
3- dynaCERT today has entered into a contractual agreement with International Environmental Partners Inc. of the UK and its President, Ms. Monika Wojcik, to manage two key dynaCERT applications in the certification of the carbon reductions generated by its HydraGEN™ Technology: (a) VERRA a highly recognized international certification organization based in Washington, DC for trading in the European marketplace where the trading of carbon credits is very active and which was been established as a major initiative of the Kyoto Protocol in 1997; and, (b) the Clean Development Mechanism (CDM) for developing countries which has been administered globally since April 6, 2007 by the United Nations offices in Bonn, Germany, and which bases its criteria as a result of an EU Directive 92/57/EEC (OJ L245, 26.8.92) in the Kyoto Protocol (see Press Release dated June 7, 2018).
Ms. Monika Wojcik is a financial and environmental markets trader, sustainability advisor and passionate advocate for countering climate change and global warming. She advises global corporate clients and governments on carbon emission offsets, sustainability, and clean technology improvements and implementations. Before founding International Environmental Partners she has worked as a broker and trader for CF Partners and FXCM.
International Environmental Partners is a carbon credit advisory and trading house with global outreach.
Ms Wojcik stated, “I am delighted to be able to help dynaCERT add the environmental product offerings to its HydraGEN™ Technology. The attractiveness of carbon products and sustainability benefits will be effective to drive decarbonization in the regions and sectors that are underrepresented and of an urgent need to improve air pollution.”
Mr. Brian Semkiw added, “We are pleased to be working with International Environmental Partners as we apply their deep knowledge of carbon credit certification to the digital process of tokenization leading to monetization of the carbon credits resulting from dynaCERT’s HydraGEN™ Technology.”
Jim Payne, President & CEO of dynaCERT commented, “Our success in gathering this combination of world experts is a major milestone achievement and aligns with our Company’s long term goal of becoming the global leader of monitoring and monetizing of diesel engine carbon credits. This goal was initiated with the development and filing of our global patent applications for our SMART ECU2 with its advanced tracking and verification capabilities and is now progressing swiftly to a genuine forthcoming accomplishment.”
