Adding dynaCERT to Your CleanTech Portfolio
After spending 16 years and over $60 million to develop its CleanTech technology, dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF | FSE: DMJ) hit major milestones in 2020, with the potential for an even better 2021.
As part of the growing global hydrogen economy, dynaCERT manufactures and distributes Carbon Emission Reduction Technology (CERT) for use with diesel engines.
Its flagship product, HydraGENTM, uses a patented process to generate hydrogen and oxygen on-demand, through an electrolysis system and supply the gases through the air intake to enhance combustion, reduce pollution emissions (by up to 50%), and improve fuel efficiency (by up to 19%).
dynaCERT estimates that a unit will pay for itself in fuel savings in about a year.
Key 2020 milestones included:
- In May, dynaCERT received a purchase order for 3,000 HydraGEN™ units from KarbonKleen Inc. and signed KarbonKleen as a dynaCERT’s Preferred Service Provider, covering the trucking market in the United States.
- In August, dynaCERT signed a Dealer Agreement with Sparta Group’s (TSXV: SAY) affiliate TruckSuite Canada Ltd. and received an order for 150 HydraGEN™ units from TruckSuite.
- In June, the Company closed an C$8.4 million stock offering and, as of its latest financials, had $16.2 million in cash.
- In July, dynaCERT reopened an updated Assembly Plant in Toronto, Ontario, Canada that was retrofitted with a new semi-automated assembly system that can assemble up to 6,000 units per month, representing potential sales of almost $445 million per year at full capacity.
- The city of Woodstock, Ontario, Canada signed a deal with dynaCERT to equip Woodstock’s diesel-powered vehicles with HydraGEN™ Technology. Woodstock is the first major North American city to sign an agreement with dynaCERT.
- dynaCERT also established a 100%-owned subsidiary called dynaCERT International Strategic Holdings Inc. (“DISH”) that will be used to strategically invest in CleanTech companies directly involved with dynaCERT’s solutions, including funding a monthly subscription option to facilitate sales of HydraGEN™ units.
- dynaCERT also launched its freight management software, HydraLytica™, as a new stand-alone offering into the FreightTech industry. The Company’s PaaS (Platform as a Service) solution aggregates vehicle data to create actionable intelligence and presents the information in an easy to use interface.
- In order to broaden the company’s appeal to a larger shareholder base, including institutional shareholders, dynaCERT graduated its stock listing to the TSX from the TSX Venture Exchange and, in the United States, graduated to the OTCQX Best Market.
Diesel Engine Market
The diesel engine market is massive – an estimated 1 billion diesel engines operate around the world.
dynaCERT’s technology works with many types of diesel engines used in various industries including construction, forestry, mining, power generation, and transportation (trucks, marine, railroad), to name a few.
dynaCERT has over 45 dealers around the world selling its HydraGEN™ technology to truck owners, commercial fleets, and governments that use diesel engines.
Even with the advent of electronic and hydrogen vehicles, it is estimated diesel engines will still dominate the commercial vehicle market due to factors such as durability, reliability, and low-cost operation. According to a report by IHS Markit, by 2040, 60% of new medium and heavy commercial vehicles sold in the United States will still be fueled by diesel.
After the coronavirus pandemic passes and with president-elect Biden campaigning on a pro-environment platform, greater air pollution restrictions are likely to be enacted in 2021.
Reductions in carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter (PM) are keys to cleaner diesel engines and dynaCERT’s technology can help lower these toxic emissions.
Two Hundred Million Dollar Market Cap – Billion Dollar Opportunity
In November 2019, famous Canadian mining investor Eric Sprott made his first significant CleanTech investment by investing $14 million in dynaCERT.
With a market cap of only C$205 million and the current billion-dollar size of the market, there is still plenty of upside for dynaCERT’s stock price. The analyst’s estimate target price is C$2.20, which represents a potential return of over 300%.
Chris Thompson, CFA, MBA, P.Eng is the President & Director of Research at eResearch Corp. and a Sr. Editor and Director for InvestorIntel Corp. Chris ... <Read more about Chris Thompson>