We all know that companies can sell our data and how valuable data has become. Now a company is aiming to sell ’emissions reductions data in the form of carbon credit futures’.

dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) recently announced a unique way to raise capital by selling up to CAD$10M of Carbon Credit Convertible Notes. The concept is quite simple. dynaCERT’s will issue a convertible note that is convertible into carbon credit ‘futures’ after 5 years, so is effectively raising capital from the future carbon credit proceeds to come from the carbon credits potentially earnt by dynaCERT’s emission reduction product, HydraGEN™.

dynaCERT’s HydraGEN™system and HydraLytica™ software creates hydrogen and oxygen on-demand through a unique patented electrolysis system and supplies these gases through the air intake of internal combustion engines to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. The main target market is heavily polluting diesel engines. HydraLytica™ is able to create the data to show the carbon reduction/credit. (see video 3 minute 50 second mark)

dynaCERT’s HydraGEN™ hydrolysis unit reduces emissions and improves fuel efficiency

Source: dynaCERT website

The dynaCERT announcement stated: “The offering is not convertible into the Company’s common shares and is non-dilutive to shareholders of the Company. Each Carbon Credit Convertible Note is priced at $1,000 (Canadian) with a maturity date of ten (10) years after the date of issue. Commencing at the fifth (5^th) anniversary after the date of issue, the Carbon Credit Convertible Notes will be convertible, at any time thereafter, at the option of the holder, into Carbon Credits generated by dynaCERT’s proprietary HydraGEN™ Technology. The Carbon Credit Convertible Notes are currently designed to be offered as a non-brokered private placement to institutional investors that wish to be the first to gain long term exposure to Carbon Credits…….”

The ‘methodology’ of the Carbon Credit Convertible Notes has been approved by VERRA; however full approval is still in the final stages as you can read here. VERRA certify and manage the world’s leading voluntary carbon markets program, the Verified Carbon Standard (VCS) Program. VERRA state: “The Verified Carbon Standard (VCS) Program is the world’s most widely used greenhouse gas (GHG) crediting program. It drives finance toward activities that reduce and remove emissions, improve livelihoods, and protect nature…….”

Jim Payne, President, CEO, and Director of dynaCERT, stated: “Carbon Credit Convertible Notes are an innovative structure offering premium Carbon Credit futures derived from measured and verified emission reductions from the data received from internal combustion engines.“

Note: Bold emphasis by the author.

Quite amazing that the ‘data showing emissions reductions’ nowadays potentially qualifies for carbon credits.

dynaCERT obtained VERRA Verified Carbon Standard ‘methodology’ approval in 2021

Source: dynaCERT company presentation

dynaCERT plan to use the raised funds towards “working capital of its currently available HydraGEN™ Technology business and fulfill timely delivery of sales of its products and to expedite current and new potential deliveries globally.”

dynaCERT is making inroads with sales into the mining industry

dynaCERT’s emission reduction HydraGEN™ product continues to gain traction in terms of sales into the mining industry. The mining industry is under significant ESG pressure to reduce emissions. As announced on November 15, 2022, dynaCERT’s distributor has reported sales and/or pilot trials with multiple leading global mining companies including Vale, Codelco, Nexa Resources, Arauco, Antamina, and a Mexican multinational food processing and distribution company Sigma Alimentos.

dynaCERT is also working on technology to develop Green Hydrogen (5:30 mark in the video), but we will leave that story for another day.

Closing remarks

Selling carbon credit futures by way of a convertible note is certainly an innovative way to raise capital. It potentially indicates a very strong demand by carbon emitting companies to be able to buy carbon credits (in this case carbon credit futures) to help offset their carbon emissions, otherwise face hefty fines.

InvestorIntel will circle back and keep investors updated on this one and see how dynaCERT goes with their offering.

You can learn more by watching the recent dynaCERT CEO video interview moderated by Byron W King here.

dynaCERT trades on a market cap of C$69 million.

Getting companies to adopt climate change initiatives is no easy task. Many economists believe that carbon pricing – either through carbon taxes or cap-and-trade programs – is the most efficient way to reduce greenhouse gas emissions. Carbon taxes provide a financial incentive for businesses and households to reduce their energy use and switch to cleaner fuels.

Carbon pricing provides across-the-board incentives to reduce energy use and shift to cleaner fuels and is an essential price signal for redirecting new investment to clean technologies. The carbon emissions and credit game is tricky, but pricing carbon is critical in deterring fossil fuel use and reducing greenhouse gas emissions.

Technology is going to play a vital role in the facilitation of climate change initiatives. There is an enormous opportunity for companies with climate change and carbon credit technologies. McKinsey reported that the carbon credit market could be worth $50 billion by 2050.

One company that has been involved in carbon credits and carbon reduction is dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF). dynaCERT was one of the first companies to focus on carbon credits, and they have been working with Verra, the largest governing body for carbon credits, for over two years. dynaCERT’s Carbon Emission Reduction Technology (CERT) creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases to engines to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency.

Verra “announced to dynaCERT that it’s Methodology in respect of its Carbon Credit Certification has reached a new important stage.” This technology can be a significant benefit for companies looking to offset their carbon emissions, and dynaCERT is at the forefront of this rapidly growing industry.

InvestorIntel interviewed dynaCERT’s President, CEO, and Director Jim Payne about its recent efforts and technology to reduce carbon emissions and generate carbon credits. Payne is excited about the commercial prospects for his company’s innovative technology. He noted that several large corporations have expressed interest in using dynaCERT’s products to reduce their emissions. These companies are attracted by the potential for significant reductions in emissions – up to 50 percent – as well as the carbon credits that will be generated.

On August 22nd, dynaCERT announced a new customer as both a showcase of their technology and one that could further their long-term prospects. The city of Timmins in Ontario, Canada, is committed to conducting a comprehensive pilot program to determine the city’s economic, social, and governance (ESG) objectives. As part of this program, the city has installed ten of dynaCERT’s HydraGEN™ units on various diesel-powered city vehicles. The units are expected to reduce fuel consumption, greenhouse gas emissions footprint, and carbon and NOx emission. Significantly, the pilot project will run and test the technology well into the Canadian winter months.

The program is planned to begin in September 2022, where equipped municipal vehicles will be analyzed to determine the impact of dynaCERT’s technology on emission reductions and fuel savings. The city expects to install HydraGEN™ Technology on buses, landfill equipment, garbage trucks, and other diesel-powered equipment. The results of the pilot program will be closely monitored to assess the potential benefits of dynaCERT’s technology for the City of Timmins, as well as a test case for other municipalities and potential commercial customers, which will be closely monitoring the results of the program in Timmins, which is considered a hub of the progressive mining and forestry community.

Although dynaCERT also recently announced the departure of two directors and a change of auditors, at publication date the company’s stock has seen a steady increase over the past two weeks from $0.10 to about $0.22. There is clearly a growing appetite at many levels for carbon emission reduction technologies.

In this InvestorIntel interview with host Tracy Weslosky, dynaCERT Inc.‘s (TSX: DYA | OTCQX: DYFSF) President, CEO, and Director Jim Payne talks about its patented technology for carbon emission reduction to meet ESG goals.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here to access InvestorChannel.com), Jim tells Tracy that “dynaCERT was going to be at the forefront of the carbon credit world long before even carbon credit was something anybody was talking about.” He explains how dynaCERT’s Carbon Emission Reduction Technology (CERT)  creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases to engines to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Jim says that dynaCERT has been working with Verra, the largest governing body to approve and register carbon credits, for over two years.

Talking about commercializing and expanding dynaCERT’s customer base, Jim continued, “we have some of the largest companies in North America that have been talking to me for quite some time. They want they want the carbon credits, they want the bragging rights, they want to be able to say that they have adopted our technology for the carbon credits.” These include municipalities in Canada and in Europe and some of the largest power supply companies in Canada, and also fleets of diesel vehicles. “We improve the fuel economy, more importantly we reduce the emissions right at the source, right at the combustion and we reduce the emissions north of 50 percent,” he says. “By adopting our technology they meet and exceed  their goals for the emission reductions, so there’s a lot of excitement there.”

To access the full InvestorIntel interview, click here.

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About dynaCERT Inc.

dynaCERT Inc. manufactures and distributes Carbon Emission Reduction Technology for use with internal combustion engines. As part of the growing global hydrogen economy, our patented technology creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Our technology is designed for use with many types and sizes of diesel engines used in on-road vehicles, refrigerated trailers, off-road construction, power generation, mining and forestry equipment, marine vessels and railroad locomotives.

To know more about dynaCERT Inc., click here

Disclaimer: dynaCERT Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

As the world gears up for the UN Climate Change Conference (COP 26) in Glasgow, UK, on November 1-12, 2021, all eyes will be on country’s emissions reductions commitments. It will also be a good time for those companies that are focused to help reduce emissions, such as dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF | FRA: DMJ).

dynaCERT is focused on reducing emissions and improving fuel efficiency with their Carbon Emission Reduction Technology (CERT) used with internal combustion engines. Their flagship product is HydraGEN™, an electrolysis unit that produces hydrogen (H2) and oxygen (O2) gases to optimize the fuel burn, resulting in a 6-19% increase in fuel economy and dramatic reduction in emissions. dynaCERT has spent C$70 million and 17 years developing the HydraGEN™ technology.

HydraGEN™ emissions benefits

Source: Company presentation

dynaCERT gives a good business description stating:

“The Company is engaged in the design, engineering, manufacturing, testing, and distribution of a transportable hydrogen generator aftermarket product, currently in use in the heavy Class 6-8 tractor trailer industry, the smaller Class 2-5 trucks, stationary power generation, off-road construction machinery, and mining and targeted for use in refrigerated trailers and containers, and forestry industries, with potential for application in the ocean shipping and trans-continental rail industries.“

Despite the COVID-19 disruption, dynaCERT has signed up 7 new global dealers

Unfortunately, the last year or so has seen a severe disruption to dynaCERT’s business both in terms of the supply chain disruption and also the global sales distribution. During Q2 2021, dynaCERT shipped 74 HydraGEN^TM units to dealers and clients. For the second quarter to June 30, 2021, the Company recognized sales of C$414,503 (compared to C$19,805 a year ago) and for the six months ended June 30, 2021, the Company recognized sales of C$464,296. These figures are below expectations due to the COVID-19 impact.

On a brighter note, dynaCERT now has 47 qualified agents and dealers operating in over 38 countries worldwide. The dynaCERT HydraGEN™ line of products is ready to be presented to a market potential of more than 100 million vehicles. Despite the disruptions, dynaCERT has been able to sign up 7 new dealers – 6TAVADA LDA (Portugal), SSiE (Canada), ESAMETAL S.r.l. (Italy), SIMMAX Power Generation (Canada), Simply Green Ltd (Canada), GridFix, (Australia), and ACR Industrial Supplies (Colombia and Peru). 

In addition, Alltrucks GmbH & Co. AG (Germany) has initiated promoting dynaCERT’s HydraGEN™ technology to 300 of Alltrucks partner establishments in Germany.

In Q1 2021, dynaCERT received purchase orders with advanced payment of 20 HG1B units for the North American continental trucking customers of KarbonKleen which is furthering its successful trials to its trucking and logistics clients. This is not part of the subscription program for 3,000 units.

The city of Woodstock has had a conventional public transit bus and a recycling packer truck installed with HydraGEN™ HG2R technology units. dynaCERT is also working with Provincial and Federal Governments, several municipalities and power utility providers across Ontario supplying quotes and extensive analyst reports for their fleets showing the potential fuel savings, as well as the emissions reductions and greenhouse gas reductions that could potentially be realized with the utilization of HydraGEN™ units.

Finally in the key North American market dynaCERT recently stated: “In Q2 2021, dynaCERT has received purchase orders of the Company’s newest 2021 models HG1 and HG2 units through several Dealers continuing to penetrate the North American logistics, trucking and consumer markets, including smaller commercial delivery/service vehicles.”

dynaCERT expertise in Hydrogen Clean Technology

In recent times dynaCERT has increasingly become known as an expert in Hydrogen Clean Technology. This was seen back in March 2021 when it was announced that dynaCERT had achieved Local and Global milestones and became part of the Ontario Hydrogen Strategy Coalition, effectively attending meetings of the Hydrogen Strategy Working Group.

Then in June dynaCERT announced that they had accepted a strategic collaboration to advise Galaxy Power, from time to time, on general innovative Hydrogen Clean Technology advancements throughout Canada.

dynaCERT investment highlights

Source: Company presentation

Closing remarks

dynaCERT has been impacted by COVID-19 and as a result, the Company’s revenues have been lower than what was expected. On the positive side, the global number of dealers has increased, which better positions dynaCERT to capitalize when the market recovers. Also, we are rapidly approaching the COP 26 UN Climate Change Conference in November 2021 when all eyes will turn towards emissions reductions.

For investors, the stock price is less than half of where it was a year ago and trades on a market cap of C$108 million. Given the enormous demand to reduce vehicle emissions and boost fuel efficiency then dynaCERT should recover soon.

InvestorIntel’s Tracy Weslosky speaks with Jim Payne, President, CEO and Director of dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF), about dynaCERT’s expansion into the FreightTech industry with its HydraLytica™ Technology. “FreightTech is a perfect fit with what we do,” Jim said. “HydraLytica™ is like a freight management system on steroids. We have taken that to a whole new level.”

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Jim went on to say, “with our technology we can not only track the truck and track fuel efficiencies and reduction in emissions but we can also track everything from maintenance of a vehicle, driving habits and where they can improve driving habits, we can also show improved truck routes to save time and fuel and also accidents report.”

Jim quoted from a study that stated that nitrous oxide is more harmful to the climate than CO2, and explains to the listener how dynaCERT reduces nitrogen oxide from a diesel engine. Adding, “We are a Canadian company with a global solution to reduce pollution.”  It is important to note that they have  recently received the highest rating from United Nations Sustainable Smart Cities.

To watch the full interview, click here

To learn more about dynaCERT Inc., click here

Disclaimer: dynaCERT Inc. is an advertorial member of InvestorIntel Corp.