Feature article January 15, 2021:
dynaCERT Inc. Carbon
Emission Reduction Technology Set for Meteoric-Like Rise as an ESG
Powerhouse
"dynaCERT
holds the world wide patents on the means and methods of monitoring
and monetizing carbon credits within emission reductions in diesel
engines, dynaCERT holds this in 12 different verticals."
 |
dynaCERT Inc.
(TSX-V:
DYA) (OTCQX: DYFSF) (Frankfurt: DMJ) |
Shares Outstanding:
~368 million
Recently Traded:
~CDN$0.82/share (TSX:
DYA)
Current Market Capitalization:
~$302 million Canadian
Corporate Website:
www.dynacert.com
dynaCERT tech turns diesel engines
into clean power
dynaCERT’s
HydraGENTM
technology
is proven through the German Government to reduce harmful emission
in diesel transport trucks; NOx reductions of 88%, CO of
50% and particulate matter of 75% (no black smoke),
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
(for larger diesel displacement engines; 8 to 16 L).
-
HG2 Unit targets refrigeration container & light truck
market; dynaCERT's HG2 unit
was officially launched August 21, 2019. The HG-2 unit is smaller than the HG-1
unit. The H2 is targeted for smaller displacement engines used
in Buses, Refrigerated Trailers and Containers, Mobile
Construction Equipment, Small Generators 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).
-
HG4C and 6C
models designed for the mining and agriculture industry.
-
Carbon Credits
-- dynaCERT has initiated the world-wide process of Carbon
Credit applications for its HG Technology, the Company has engaged
International Environmental Partners Limited of the UK to assist
the Company in this regard, and is working closely with VERRA
Authority.
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dynaCERT's HG technology was 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
|
|
Valuation Commentary:
dynaCERT Inc.
(TSX: DYA) (OTCQX: 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 Carbon Emission Reduction Technology. A move toward a $1billion+ market cap
(~$2.50/share for DYA) near-term is not unreasonable as the level of interest
for dynaCERT’s award winning HydraGEN (HG) technology continues to
build globally as a solution to the problem of harmful exhaust
emissions plaguing cities across the world.
-
Commentary source: Market Equities Research Group
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dynaCERT Inc. (TSX: DYA) (OTCQB: DYFSF)
(Frankfurt: DMI) recently graduated to trading on the Canadian
TSX Big Board. As a condition, prior to listing transition, the TSX
exchange required dynaCERT do one capital raise based on a brokered
deal (despite the fact the Company did NOT require the funds).
Demand to participate was exceptionally high and as a result 5
brokers came together as a consortium, acknowledging the future is
so bright for dynaCERT that they all wanted to be part of this
emerging Environmental, Social and Governance (ESG) investment. HG
Carbon Emission Reduction Technology has taken
many years (~C$60 million) to perfect and is now just beginning to
scale, with major potential as the only company with the patents and
technology, proven, in production, and able to provide an immediate
solution to reduce global air pollution. The broker consortium did a
bought deal, raising C$21 million from institutions overnight,
however dynaCERT paired it down and accepted ~C$8M.
dynaCERT
Inc. is on the cusp of a major catalyst entering 2021,
it possesses potential trillion dollar carbon credit
patent:
-
In a recent year-end/new-year
corporate interview, the CEO of dynaCERT disclosed
the extreme level of latent potential poised to be
realized -- the CEO recounted an opinion expressed
to him in the closing weeks of 2020 by a securities
analyst; “that one
worldwide patent you've got on the means and methods
of monitoring and monetizing carbon credits within
an internal combustion engine, that's a trillion
dollars in itself.” (See related
interview URL link:
https://www.newsfilecorp.com/release/71201 online).
-
dynaCERT holds the world
wide patents on the means and methods of monitoring
and monetizing carbon credits within emission
reductions in diesel engines, dynaCERT holds
this in 12 different verticals. dynaCERT is now in
the process of certification so carbon credits
generated and tracked can be sold on the open
market. This alone, once approved and gains
traction, has serious potential to catapult dynaCERT
toward becoming a multi-billion Fortune 500 company.
See overview further below of dynaCERT’s proprietary HydraLytica™ tracking & auditing software,
how it key for the Company’s carbon credit plans, and just how big
this is setting up to be.
-
dynaCERT’s HydraGEN™ (HG)
technology is proven (on diesel trucks) to result in
up to 88.7% reduction in NOx emissions, ~50%
reduction in CO, 6-19% reduction in CO2, up to 57.1%
reduction in Total Hydrocarbon emissions, 55%+
reduction in particulate matter (no black smoke), up
to ~20% reduction in fuel consumption, provides
better torque, and lower maintenance costs.
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Emerging from COVID-19, the Company has more
than adequate cash reserves (~C$16M
cash entering Q4-2020 + ~$4M in other current assets and
virtually no significant debt), a better Assembly Plant, an improved
R&D facility, significant product improvements, and has been working on
clearing a continued backlog of previously announced purchase
orders, additionally new orders (including many reorders from highly
satisfied clients looking to expand adoption of the technology that
saves them money) continue to come in.
dynaCERT is now recognized in important circles as the future of
carbon credits: The United Nations has certified dynaCERT’s
product under its Smart Sustainable Cities Program. dynaCERT is at the forefront of the coming
Carbon Credit market, and is now the clear leader in clean
technology poised for wide-spread adoption across all sectors of
businesses. Order of Canada member Eric Sprott, plus Dr. Jorg Mosolf
(of Europe’s MOSOLF Group) are two of the most recent strategic
investors that have taken significant shareholder positions and made
business commitments in DYA.

dynaCERT Inc.'s
CEO & President, Jim Payne, was interviewed on Bloomberg BNN
(Business News Network) on February 26, 2020 in a segment entitled
"Power
Shift: Eric Sprott invests in dynaCERT's carbon-cutting technology".
In the interview dynaCERT’s CEO
disclosed he was invited to be a keynote speaker at the World
Climate Summit (originally scheduled for November-2020) in the UK,
they asked the CEO to
speak on the world's carbon credits and the future of the world's
carbon credits. Due to COVID19 the summit has been postponed until
the later part of 2021, but the fact dynaCERT is earmarked as a
keynote guest speaker speaks volumes to the level of coordinated
governmental support for dynaCERT's carbon credit tracking/auditing
technology to be advanced globally as the only universally accepted
standard ready for mass adoption.
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dynaCERT Inc. (TSX: DYA) (OTCQB: DYFSF)
(Frankfurt: DMJ) is the subject of coverage by analysts at
Haywood Securities which issued an ‘Uncovered Radar Flash –
Watchlist Report’ on June 2, 2020 entitled “An ESG Benefactor; A
Carbon Emission Reduction Technology that Took Years to Perfect is
Now Ready to Scale”. Environmental, Social, and Governance (ESG)
investment themes are accelerating in interest and Haywood
Securities has identified dynaCERT Inc. as a top candidate for
portfolio consideration.
The full report may be viewed at
https://sectornewswire.com/Haywood-DYAJun22020.pdf online.
The report discusses how the investment landscape has changed in the
last year and that timing is right for an opportunity to scale ESG
technologies. The Haywood analysts also discuss dynaCERT’s current
production capabilities (at its Toronto facilities alone), margins, and provide a rough 12-month
forecast with both a Base Case and an Upside Case scenario (Based on
a class-8 engine HG-1 unit going out the door to a dealer for
~C$6,200 to dynaCERT netting 50% gross margins);
Base Case (full capacity) = 24,000 units/yr. Revenue (as
C$6,200/unit) = C$148M in revenues … Gross Profit (at 50% GM) =
C$74M.
Upside Case (3 shifts) = 72,000 units/yr. Revenue (at
C$6,200/unit) = C$446M in revenues … Gross Profit (at 50% GM) =
C$223M.
Additionally, the analysts point out the future potential for
recurring revenue streams from carbon credit revenue as an
attractive added value proposition.
NEW: Haywood
Securities lists dynaCERT Inc. in its 'Haywood Top Picks 2021' publication
Excerpt copy: [Click
here
to open a PDF image of the source document 'Haywood Top Picks 2021'
of the related DYA section]
dynaCERT Inc. (DYA-T, $0.54, Not Rated,
Consensus Target: $2.20): DynaCERT
manufactures and distributes Carbon
Emission Reduction Technology (CERT) for
use with internal diesel combustion
engines that increase fuel economy while
lowering emissions. DynaCERT
differentiates itself from the pack
through its unique synergistic product
offering, namely by enhancing the
productivity of the machinery to which
it is attached. The technology injects
trace amounts of on-demand hydrogen into
the fuel system, for a cleaner burn,
achieving 6 - 19% in fuel savings, while
reducing the machinery's carbon
footprint by up to 50%. This also
accompanied by the development of a
recurring revenue stream with data
monitoring of the technology. With a
growing momentum in cleantech/green
energy stocks there haven't been many
names left behind in the run -- with a
recent warrant overhang removed,
DynaCERT is one that could play catch up
with any positive news flow over the
coming weeks/few months. The Company's
principle target market is diesel
engines in long-haul/short-haul trucks.
Currently there are 1 Bn internal
combustion engines (ICE) world-wide,
which are ~90% diesel and this number is
growing by 100 MM per year. In a mining
operation one truck could burn upwards
of ~$1 MM in diesel per year. This
creates a prompt opportunity for DYA as
with their technology these mining
operations could save 10%, or ~$100,000
a year, per truck. With a few recent
standstill quarters due to shut-in
product assembly from March-August in
leu of COVID we still see a worthwhile
growth path in the Company's future as
they continue pilot projects with
customers to gather more data and
feedback. This could potentially lead to
some big orders with large shipping
companies over the next few months,
which would immediately put the stock
onto a lot of radar screens.
-- Source:
Haywood Top Picks 2021 |
##
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dynaCERT recently received its
first institutional coverage; the independent investment bank GBC
AG, headquartered in Augsburg, Germany, initiated coverage with a
'BUY' rating and a target price per common share of dynaCERT of $1.90 Canadian (or in US dollars: USD$1.43 or in Euros: €1.30) --
click here to view full copy of this report. The price target
has since been revised upwards (on August 10, 2020) to $2.20/share (see synopsis of
upgrade from analyst further below in this article). The report also
outlines a pathway for significantly higher price potential from
2022 - 2028 via a multi-phase adoption curve covering three distinct
product lines; 1) HydraGENTM, 2) HydraLyticaTM, and
3) dynaCERT's carbon
credit management system, each requiring their own set of
specialized competences in various fields. The Company has
successfully developed a suite of products that can act as their own
ecosystem for the transportation industry including emissions
reduction, fuel efficiency and a fleet management solution while
providing the client with a steady source of income with its carbon
credit management program. Not only is each product unique in a
standalone fashion, but when combined, the analysts believe that
"we could be witnessing the birth of a giant."
With over a billion diesel engines in the world and interest
building from multiple entities and jurisdictions, the team of
analysts believe dynaCERT has a product line that can reach a total
market of USD 6 trillion with no known direct competitor (dynaCERT
only needs a tiny fraction of the market potential to become a
multi-billion dollar market cap valuation); "There
is no known competitor to dynaCERT’s HydraGEN TM unit, especially
when combining it with the HydraLytica TM software that offers in
one solution, an emissions and fuel consumption reduction device, a
carbon-credit management program (projected) and a fleet management
software. Adding all these elements together not only sets dynaCERT
apart but makes it a closed ecosystem that, once implemented in a
trucking fleet, becomes extremely hard to replace by any other
product."
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1) HydraGENTM

Figure 1a. (above) HG1 Unit installed on diesel truck.
dynaCERT Inc. currently has a market cap
of only ~C$302 million, miniscule compared to where the Company is
headed.
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,
providing better torque, and lowering maintenance costs.
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 (German for
“permit of operation”) certification
license --
dynaCERT
announced it has received its ABE certification on August 26,
2019 -- a significant catalyst for sales.
Note: The head of TUV testing in Germany was so
impressed with dynaCERT's results that he quit his job to join
dynaCERT. See related July 10, 2019 news release "TÜV
Süd, Lahr Germany, Head Engineer Resigns to Join dynaCERT GmbH and
dynaCERT’s HydraGEN(TM) Wins Gold Award from ESQR in Germany".
The
MOSOLF Group has taken the lead in Europe, opening dedicated
showrooms, and hiring scores of new employees dedicated 100%
full-time to marketing and installation of dynaCERT's HG technology
in Germany, France, Benelux, and Poland.
So impressive is the HydraGENTM
technology dynaCERT won
the 2019 German Innovation Awards prize for Energy Solutions,
additionally, dynaCERT is the Gold Award from ESQR in Germany, and
the Gold Medal winner of the prestigious 2018 Edison Award for Best
New Product.
Validation through both on-road and accredited
3rd party testing of dynaCERT’s HydraGEN™ Technology have produced
results of;
1) Up to 19.2% reduction in Fuel Consumption
2) Up to 88.7% reduction in NOx emissions
3) Up to 46.7% reduction in CO emissions
4) Up to 9.6% reduction in CO2 emissions
5) Up to 57.1% reduction in Total Hydrocarbon emissions
6) Up to 55.3% reduction in particulate matter (no black smoke)
7) Increased engine power and torque
8) Extended engine and oil life (lower maintenance costs).
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."
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 -- there are 60 million diesel-powered
trucks, trailers and equipment in North America alone and one
billion diesel engines operating worldwide on all types of diesel
equipment.
Figure 1b. (above) HG units.

Figure 1c. (above) Industries Served in
12 Different Verticals.
dynaCERT’s current market: The Company
currently installs HG technology on buses,
refrigerator trailers, small trucks, class 8
trucks, electrical power generation units of all
sizes, farming equipment and agriculture
equipment, construction equipment, mining
equipment, and it is now moving into marine
vessels. The Company believes it will also at
some point in the future installing its
technology on ocean going vessels, train
locomotives, and it is currently working with a
group in Europe to develop a unit for passenger
vehicles.
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GBC AG Analysts, Matthias Greiffenberger, and Julien Desrosiers had the
following synopsis on dynaCERT in their latest
(August 10, 2020) upgrade in a piece entitled “Significant
leaps in sales to be expected, Possible
technological revolution”;
dynaCERT has a unique technology that makes it
possible to achieve emission and fuel
reductions. The research and development was
carried out over several years and is now to be
marketed. In our initial research report
(20.09.2019), we expected a significant jump in
sales in 2020 and we confirm our assumption with
this report. Nevertheless, we expect a lower
sales level due to the corona crisis. Because of
the corona crisis, hardly any units could be
produced in the first half of 2020, as the
production facility had to remain closed.
Production should now have resumed by now
(August 2020). dynaCERT was able to continue
successful sales negotiations despite the
production being halted and therefore has a very
large order intake.
Production and sales got off to a good start at
the end of 2019 and were then slowed down by the
corona crisis. In the past 2019 financial year,
sales revenues rose to CAD 1.06 million
(previous year: CAD 0.09 million). A total of
305 systems were sold, of which 189 systems were
sold in the fourth quarter. A net result of CAD
-12.67 million was achieved in fiscal year 2019,
with a very high gross margin of 71.4%. Overall,
operating costs rose to CAD 8.79 million (PY:
CAD 7.69 million), driven by higher marketing
and corporate development costs.
The first Quarter 2020 initially continued the
positive trend and recorded sales increases
until the corona crisis brought production to a
halt. Sales revenues of CAD 0.31 million
(previous year: CAD 0.00 million) were achieved
with a net result of CAD -2.46 million (previous
year: CAD -3.78 million). Sales continued
successfully and, under an exclusive agreement
for the truck market in the USA, Karbon Klean
has guaranteed a minimum quantity of over
150,000 units for the next three years.
In the past, technologies that contribute to
fuel savings established themselves on the
market extremely quickly. On the one hand,
buyers can reduce their running costs and, on
the other hand, competitors must also adopt the
technology in order to remain competitive. For
example, the market penetration of trailer
skirts began in 2008 and reached a market
penetration of over 60% just two years later. We
expect that dynaCERT's technology will also
establish itself dynamically in the market. We
have drawn up conservative planning and still
expect significant sales leaps. We expect sales
revenues to increase to CAD 32.00 million in the
current fiscal year 2020 and to reach CAD 200.00
million in 2021 and CAD 350.00 million in 2022.
On the earnings side, a similar development
should take place and we expect a net result of
CAD -1.34 million in 2020, CAD 45.02 million in
2021 and CAD 76.26 million in 2022. This
forecast model does not yet include the
extensive sales and earnings potential from the
CO2 certificates (carbon credits).
The transition of the Company from TSX-Venture
to the TSX demonstrates the quality of the
Company and should provide even better access to
institutional investors and capital.
Should the company be able to roll out the
patent-protected technology on the market
quickly, massive valuation leaps should be
possible. On the basis of our DCF model, we are
raising the price target to CAD 2.20 (USD 1.65;
€ 1.40) and assigning a Buy rating in view of
the high upside potential. # #
-- end of
Analysts synopsis --. |
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dynaCERT has spent over $60
million perfecting this technology. The company
now sells its HG units world-wide. It has an
assembly plant in Toronto, Ontario Canada which
it has just recently upgraded to a more
computerized semi-automated system in order to
streamline production and quality control.
dynaCERT’s goal is to open an assembly plant in
Mexico, Europe, and eventually India. dynaCERT’s
cost is 50% of the wholesale price, so there is
good profit margin. The HG-1 units for class 8
trucks typically wholesale to dealers for
~USD$5K. The Company has a global dealer
network, some dealers have also significantly
invested into the Company. E.g. the MOSOLF Group
have invested directly into dynaCERT, and they
are also opening 23 showrooms across Europe with
distribution channels in Germany, France,
Netherland, Belgium, Luxemburg, Poland, and the
Czech. H2Teck in Canada has aggressively moved
dynaCERT into the mining industry across Canada,
USA, Peru, Chile, Brazil, Paraguay, and others.
Recent development of significance (A) Sales
and Traction of HG units in USA: See May 11, 2020 news release "dynaCERT
Invests in the USA and Receives a Purchase Order for 3,000 HydraGEN™
Units". dynaCERT granted KarbonKleen Inc. (“KK”), dynaCERT’s
Preferred Service Provider, the exclusive Dealership rights in the
trucking industry in the United States of America until December 31,
2024. The deal is subject to certain quotas, including a minimum of
150,000 HydraGEN™ Technology Units over a little more than three
years. On May 9, 2020, KK has provided the Company with a purchase
order for 3,000 HydraGEN™ Technology Units. KK essentially markets
the product thru financing subscription agreement across North
America.
Recent development of significance (B)
regarding HG units in Europe's
truck transport and marine sectors: This Q4-2019, the Company
announced a Strategic Alliance with MOSOLF Group of Europe, including a MOU for an initial order of 1,000 units in 2020 and plans for
penetration into the European market.
According to the European Automobile
Manufacturers Association (“ACEA”), there
are over 398 million vehicles in the
European Region. Approximately forty-five
percent (45%) are diesel-powered. Almost all
of the approximately 39 million commercial
vehicles are diesel-powered and these are
eligible for dynaCERT’s HydraGEN™ Technology
across the European Union and the rest of
Europe. dynaCERT’s ABE Homologation from KBA
applies to more than 560 MAN powered vehicle
types and models. The December 16, 2019 news
release "dynaCERT
Announces Strategic Investment by Mosolf in Europe" demonstrates
tremendous financial, manpower, and retail space commitment. MOSOLF
is one of the largest automotive services organizations in Europe,
used by a wide variety of businesses, including automotive
dealerships. NOTE: MOSOLF is also initiating marine applications by
installing dynaCERT's HG technology on vessels owned by Dutch
shipping company F. Elbert B.V. and on the largest shipping line in
Europe, the Grimaldi Group.
The math on marine sales potential is staggering; example: to outfit
just one container ship could easily generate close to $1 million in
sales (as
opposed to something in the trucking market which is short of
$10,000/ unit.)
and there are
>90,000 commercial cargo ships alone operating world-wide.
From a pollution standpoint;
just
one container ship puts out the equivalent emissions of millions of
cars per annum [click
to view related link]. Additionally, dynaCERT's
recent (August 31, 2020) addition of
the Alltruck Network in Europe is major and should contribute
toward exploding growth (Alltruck has over 800 centers across
Europe).
Recent development of significance (C)
regarding HG units in Mexico : This
Summer-2019 dynaCERT announced that it has received a purchase order
with a deposit for 100 HG1 units destined for trucking in Mexico
from a major service provider for its client, Alliance, which
supplies trucking equipment to one of the largest federation of
labour unions in Mexico. Alliance has a market of over 1,000,000
diesel-operated vehicles in Mexico. Additionally, associated with
the order, dynaCERT signed an MOU whereby the first 10,000 units
destined for Mexico are expected to be assembled by dynaCERT in its
Toronto facilities, and dynaCERT will begin negotiations for the
establishment an assembly facility in Mexico. Initially this new
facility will service further Mexican demand for up to 1 million
more HG units (see
related July 2, 2019 news release here, and for Nov. 14, 2019
follow-up news of first units being shipped thru KarbonKleen
click here).
2) HydraLyticaTM
HydraLyticaTM is dynaCERT’s
proprietary software with remote real-time telematics which the
Company has retained worldwide experts to establish an audit trail
of fuel savings and future carbon credits. dynaCERT's telematics
developer invented Apple PayTM and PayPalTM. Related to HydraLytica™,
dynaCERT is greatly escalating its scope of applications and utility
to respond to the growing industry needs of Logistics companies and
the broader Trucking Management software ecosystem. On September
23, 2020 the Company announced that dynaCERT International Strategic
Holdings Inc. (“DISH”), a wholly-owned subsidiary of dynaCERT, has
agreed with Corsario Ltd. of Mississauga, Canada, dynaCERT’s
HydraLytica™ software developer, to magnify and maintain the
functionality of its new proprietary suite of FreightTech software
applications. GP LogiX Inc., a wholly-owned subsidiary of Corsario
established specifically for this single purpose, will market the
functionality of dynaCERT’s new FreightTech software and share
equally with DISH all financial benefits, thus providing yet another
stream of cash flow to dynaCERT, through DISH.
3) dynaCERT's carbon credit
management system
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 diesel engine powered 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). The HG technology acts as a catalyst; hydrogen has a
9 to 10 times flame spread which helps the engine burn diesel more
completely, resulting in more power, less carbon fouling, and a
reduction in pollutants. The Company has taken ~10fer years, spent >$60
million developing its technology, and has proven world-wide (in
numerous rigorous high-level government and private testing
programs) eye-popping results for its product for diesel engines
which reduces pollution very significantly, but at the same time
improves fuel economy on average 10% to 15%. More importantly, from
an environmental health perspective, dynaCERT HG tech reduces
harmful emissions (including NOx) clear across the board north of
50%. This HG technology is controlled by a smart-ECU (the brains of
the unit that interfaces with a truck engine’s computer) 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.
dynaCERT holds
the world wide patents on the means and methods of monitoring and
monetizing carbon credits within emission reductions in diesel
engines, dynaCERT holds this in 12 different verticals. Looking at dynaCERT’s long-haul trucking market alone, each truck can generate
as much as $3,000 in carbon credits per annum. dynaCERT’s plan is
once it has gone through approval with VERRA authority, dynaCERT
will maintain 50% of the carbon credit$ and 50% of it will go to the
fleet owners. The Methodology now in for approval with VERRA USA
uses dynaCERT's patented HydraGEN™ Technology to lower carbon
emissions and its HydraLytica™ Telematics technology to securely
record carbon emissions and other non-personal data from diesel and
gas engines. The application is currently being dealt with.
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The
future is extremely bright for dynaCERT as the level of enthusiasm
is building globally for an immediate solution to greenhouse gas
related climate change and the dire need for clean breathable air.
|

Fig.
2 dynaCERT leveraging its gold Edison
Award at Truck World exhibition. |
dynaCERT Inc. has attracted top talent:
The aforementioned analytical software, smart-ECU, and HG technology
were all developed in-house at dynaCERT which has attracted
top-level talent in various disciplines. Noteworthy individuals
associated with dynaCERT include; David Bridge, one of the original
developers from Virgin Mobile, and also formerly of Research in
Motion (known for the Blackberry); FinTech Pioneer Brian Semkiw;
Michael Christodoulou, the former President of Cummins Diesel
Canada; former politician and policy expert Mr. Frank Klees; and
carbon credit experts from International Environmental Partners
Limited of the UK.
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Figure 3 (above). dynaCERT HG-1 unit on a
Loblaw truck.
The independent testing firm
PIT Group has verified a 5.9%
improvement in fuel economy and between 46.1% to 50% reduction in
carbon monoxide, total hydrocarbons and NOx in straight line
conditions. There are units now on the road yielding upwards of
19.2% fuel savings in real world conditions. These results simply
cannot be ignored by such a major industry as trucking -- besides
the motivation of good corporate citizenry, or talk in some
jurisdiction of potential environmental legislation compelling
action, certainly the ROI from improved fuel economy and maintenance
cost savings provides more than enough economic incentive to acquire
this product.
Figure 4. Example of branding 'DRIVING
CHANGE FOR A BETTER FUTURE' gleamed from
dynaCERT's company home page (
www.dynacert.com).
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History of dynaCERT
(2004 -2019):
2004 Founding of
Dynamic Fuel Systems Inc.
2009 Introductory sales generated to
first adopters.
2010 Developed Patent Pending system
that separates hydrogen and oxygen –
HydraGEN TM.
2012 Dynamic Fuel Systems Inc. becomes
dynaCERT Inc.
2016 3rd party testing from UOIT
confirmed the performance of the
HydraGEN TM technology.
2017 Shipping of the HG1 product to
customers worldwide.
2017 Successful testing on a 2.1 L
diesel engine for a refrigerated
trailer.
2017 3rd party testing and verification
by the PIT Group in Montreal.
2017 December – First Order from Europe.
2017 Proprietary Greenhouse Gas tracking
system.
2017 CE Certification for HydraGEN TM
Technology in Europe.
2018 Won Top Gold Edison Award for
Vehicle Advancements.
2018 Government of Austria commits to
test the dynaCERT technology.
2019 Government of India commits to test
the dynaCERT technology.
2019 HydraGEN TM™ Technology for the
Mining Industry launched.
2019 dynaCERT Patent Granted.
2019 First Ontario Trucking Fleet Order.
2019 Honored by 2019 German Innovation
Awards.
2019 Initial Purchase Order for 100
HydraGEN TM™ Units from Mexico.
2019 New Engine Telemetry Device
Software launched.
2019 Financing through a Subscription
membership with KarbonKleen launched.
2019 DynaCERT receives ABE
certification.
dynaCERT was effectively rebooted and
rebranded in the latter part of 2017
after a trying year for dynaCERT;
2017 started off well with purchase
orders and the Company started shipping well,
however it discovered a problem over that summer
and worked with its old supplier to identify the
issue. The problem turned out to be the circuit
board (supplied to dynaCERT), and the resulting recall/fix caused
havoc with client goodwill after multiple
versions of rectifications. That problem caused
the Company to miss the opportunity to grab
~US$70 million in sales. dynaCERT was essentially in damage
control and reputation repair. dynaCERT
started reputational repair in 2017 by seeking
PIT Group certification, which formed the
cornerstone/start of dynaCERT 2.0. -- since then
there has been no issues. |
Recent noteworthy Company news
regarding developments of significance:
•
December 3, 2020 "dynaCERT
Announces Voting Results of Annual Meeting".
•
September 23, 2020 "dynaCERT
Launches into the FreightTech Industry".
•
September 8, 2020 "dynaCERT
to Equip the City of Woodstock with Carbon Emission Reduction Technology".
•
August 31, 2020 "dynaCERT
Products to be Featured in the Alltrucks Network in Europe".
•
August 20, 2020 "dynaCERT
Receives Purchase Order to Complement COVID -19 Safety Package for
Trucking Industry".
•
August 12, 2020 "dynaCERT
Granted Highest Smart Sustainable Company Rating Seal".
•
July 30, 2020 "dynaCERT
Survives COVID-19 and Re-Emerges Very Financially Healthy".
•
July 2, 2020 "dynaCERT
Graduates to the Toronto Stock Exchange".
•
June 18, 2020 "dynaCERT
Closes Upsized $8,367,400 Overnight Marketed Equity Financing".
•
June 9, 2020 "dynaCERT
Graduates in the USA to the OTCQX".
•
June 3, 2020 "dynaCERT
Prices C$7.3 Million Oversubscribed Overnight Marketed Equity Financing".
•
May 14, 2020 "dynaCERT
Receives Conditional Approval to Graduate to the Toronto Stock Exchange".
•
May 11, 2020 "dynaCERT
Invests in the USA and Receives a Purchase Order for 3,000 HydraGEN™
Units".
•
February 20, 2020 "dynaCERT
Number 1 Ranked Company Across All Sectors on 2020 TSX Venture 50".
•
December 16, 2019 "dynaCERT
Announces Strategic Investment by Mosolf in Europe".
•
November 29, 2019 "dynaCERT
Welcomes Eric Sprott as a Significant New Shareholder".
•
November 20, 2019 "dynaCERT
Expands Advisory Board with Dr. Jörg Mosolf of Europe".
•
November 18, 2019 "dynaCERT
Advances Carbon Credit Application with VERRA Authority".
•
November 14, 2019 "dynaCERT
Delivers 150 HydraGEN™ Technology Units to KarbonKleen Destined for
Mexico".
•
November 13, 2019 "dynaCERT
Announces Strategic Investment by Way of Private Placement".
•
November 13, 2019 "dynaCERT
Commences Shipping HydraGEN™ HG-1 and HG-2 Units to MOSOLF Group of
Europe".
•
November 12, 2019 "dynaCERT
Engages Cosario to Secure its Data Analytics and Ensure User Privacy".
•
November 8, 2019 "dynaCERT
Gives Notice of Acceleration of Expiry Date to Holders of Re-priced
Warrants".
•
October 25, 2019 "HydraGEN™
Technology Approved in Underground Mining".
•
October 16, 2019 "dynaCERT
Establishes Strategic Alliance with MOSOLF Group of Europe".
•
September 20, 2019 "dynaCERT
Receives Independent Research Report by GBC AG".
•
September 11, 2019 "dynaCERT’s
New HG2 Model Achieves an A+ in School Bus Trials".
•
August 26, 2019 "dynaCERT
Obtains European Approval of its Hydrogen Technology".
•
August 22, 2019 "dynaCERT
Strengthens Its Intellectual Property Advancing Global Sustainability".
•
August 21, 2019 "dynaCERT
Launches its New HG2 HydraGEN™ Technology".
•
August 20, 2019 "dynaCERT’s
Reseller KarbonKleen Increases Initial Order to 400 HydraGEN™ Units".
•
August 2, 2019 "dynaCERT
and H2 Tek Penetrate the Hydrogen Mining Market".
•
July 25, 2019 "dynaCERT
Secures a Compelling Financing Alternative for its HydraGEN™ Technology
from KarbonKleen Inc.".
•
July 10, 2019 "TÜV
Süd, Lahr Germany, Head Engineer Resigns to Join dynaCERT GmbH and
dynaCERT’s HydraGEN(TM) Wins Gold Award from ESQR in Germany".
•
July 4, 2019 "dynaCERT
Launches its New Engine Telemetry Device Software".
•
July 2, 2019 "dynaCERT
Receives Initial Purchase Order for 100 HydraGEN™ Units Destined for
Mexico".
•
May 29, 2019 "dynaCERT
Honoured by 2019 German Innovation Awards".
•
May 27, 2019 "dynaCERT
Appoints Steven Christou as Global Product Support Manager".
•
May 16, 2019 "dynaCERT
Welcomes Ontario Government Ministers and Parliamentary Assistant to an
Official Visit of its Toronto Head Office and Plant".
•
May 2, 2019 "dynaCERT
Receives the Notice of Allowance for a Patent for its SMART ECU".
•
May 1, 2019 "dynaCERT
Invests in Multiple Global Vertical Markets in Accordance with its
Strategy".
•
April 11, 2019 "dynaCERT
Targets Underground Mining with Original Equipment Manufacturer, Total
Equipment Services Inc.".
•
April 11, 2019 "dynaCERT
Secures its First Ontario Trucking Fleet Order".
•
April 9, 2019 "dynaCERT
Patent Granted".
•
March 29, 2019 "dynaCERT’s
International Participation in Trucking and Technology Shows".
•
March 28, 2019 "dynaCERT
Selects Geewadin Elliott as First Nations Liaison".
•
March 26, 2019 "dynaCERT
Initiates Carbon Credit Applications for its HydraGEN™ Technology".
•
March 22, 2019 "dynaCERT
and H2 Tek Nab Top Prize at the 2019 Mining Cleantech Challenge".
•
March 22, 2019 "dynaCERT
Continues to Strengthen its Advisory Board".
•
March 12, 2019 "dynaCERT
Selected as a Finalist to Present to Colorado’s Mining Cleantech
Challenge".
•
March 7, 2019 "dynaCERT
Appoints Amir Farahi to its Board of Directors".
•
March 1, 2019 "dynaCERT
Announces Appointment of Brian Semkiw to its Advisory Board".
•
February 25, 2019 "dynaCERT
Announces Over-Subscribed Offering and Closing of $5,250,000 Private
Placement".
•
February 4, 2019 "dynaCERT
Launches HydraGEN™ Technology for the Mining Industry".
•
January 31, 2019 "dynaCERT
Continues Innovation and Development of Intellectual Property Globally".
•
January 30, 2019 "dynaCERT
Announces First Annual International Sales Conference".
•
January 24, 2019 "dynaCERT
Appoints Mr. Frank Klees, Former Ontario Cabinet Minister, to Advisory
Board".
•
January 16, 2019 "dynaCERT
Achieves Milestone from Government of India".
•
December 28, 2018 "dynaCERT
Provides Corporate Update".
•
December 20, 2018 "dynaCERT
Receives Commitment from Government in Austria".
•
December 19, 2018 "dynaCERT
Comments on Ontario’s Environmental Plan and Provides a Corporate Update".
•
December 4, 2018 "dynaCERT
Announces Completion of Oversubscribed Offering".
•
November 27, 2018 "dynaCERT
Announces Offering Amendment, Proposed Oversubscribed 2nd Tranche
Closing and Warrant Amendments".
•
October 19, 2018 "dynaCERT’s
HydraGEN™ Seen as Ground-Breaking Technology in European Diesel Market".
•
October 1, 2018 "dynaCERT
Comments on Ontario Drive Clean Program Redesign".
•
September 24, 2018 "dynaCERT
Updates on IAA Commercial Vehicle Trade Show".
•
September 24, 2018 "dynaCERT
Offers a Solution to 2019 European CO2 Regulations".
•
September 21, 2018 "dynaCERT
Announces $1,000,000 First Tranche Subscription of Brokered Private
Placement".
•
September 18, 2018 "dynaCERT
Announces Brokered Private Placement".
•
September 17, 2018 "dynaCERT
Continues New Global Installations and Significant Progress".
•
August 16, 2018 "dynaCERT
Provides Updates on Homologation and Product Launch in Europe".
•
June 21, 2018 "dynaCERT
Announces New HG145 Orders and New Dealers".
•
June 7, 2018 "dynaCERT
Announces Updates, New Orders, New Equipment Received for HG-2".
•
May 29, 2018 "dynaCERT
Announces New Orders, Repeat Business and Real-World Results".
•
May 11, 2018 "dynaCERT
Official Launch of HydraGEN™ Technology in Middle East".
•
April 20, 2018 "dynaCERT
Exhibits at Toronto’s Truck World Show and Closes Oversubscribed Final
Tranche of Equity Private Placement".
•
April 12, 2018 "dynaCERT
Receives Top Gold Award in 2018 Edison Awards for Vehicle Advancements".
•
April 10, 2018 "dynaCERT
Expands its Dealer Network in the Middle East with Mr. Maheboob Nagji
and Closes Second Tranche of Equity Private Placement".
•
March 5, 2018 "dynaCERT
Official Launch of HydraGEN™ at TRUCKWORLD 2018".
•
March 2, 2018 "dynaCERT
Provides India, Europe and Corporate Update".
•
February 27, 2018 "dynaCERT
Provides Update re India Matters".
•
January 31, 2018 "dynaCERT
Appoints Colonel Yalon Farhi as Director, Provides Corporate Update
Including Equity Financing and Note Redemption".
•
December 21, 2017 "dynaCERT
Receives Initial Order for Europe".
•
November 29, 2017 "dynaCERT
Inc.: PIT Group States “Test Results to be Envied”".
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Production and Growing Capacity - Production of the different
HG1 series models is underway at the Company's Toronto, Canada,
facilities with the current capacity to build HG1 units at 6,000
units per month. The HG2 series was launched in August-2019. The
Company has planned for capacity to produce 10,000 HG2 units per month.
Additionally, as mentioned above, in
a deal negotiated for HG sales into Mexico the Company stated
"Pursuant to the MOU, the first 10,000 units destined for Mexico are
expected to be assembled by dynaCERT in its Toronto facilities,
ensuring timely delivery and meeting the Company’s high quality
control for deliveries to Mexican end-users of its HydraGEN™
Technology. Under the MOU, dynaCERT will immediately begin to
negotiate with KarbonKleen, Alliance and its principals in Mexico to
establish an assembly facility in Mexico. Initially this new
facility will service further Mexican demand for up to 1 million
more HydraGEN™ units and provide increased employment in Mexico."
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