WHILE THE WORLD WAITS FOR ELECTRIC VEHICLES, DYNACERT, INNOSPEC, AND OC OERLIKON ARE MAKING DIESEL CLEANER

THE THREE PATHS TO GREATER EFFICIENCY

The mobility transition in freight transport is a marathon, not a sprint. While politicians in Berlin and Brussels argue over bans on new internal combustion engines, the reality of global goods transport rolls on wheels powered by diesel engines. According to estimates by the International Energy Agency, around 300 million heavy-duty vehicles are in use worldwide—trucks, construction machinery, mining vehicles, and stationary generators—with an average service life of well over 20 years. Even if not a single new diesel engine were produced starting today, these vehicles would continue to spew carbon dioxide and particulate matter into the atmosphere well into the 2040s. Here lies a market worth billions, one that has been criminally neglected by many stock market investors.** Those who want to reduce CO₂ emissions in the transportation sector quickly and cost-effectively do not have to wait for new vehicles. The key lies in improving existing engines. Retrofitting, rather than replacing, is the principle, and it is as economically sound as it is technologically challenging.

APPROACH 1: THE MINIATURIZED HYDROGEN PLANT

The basic idea behind dynaCERT from Toronto is as old as hydrogen research itself, but the technical implementation is state-of-the-art. The so-called HydraGEN™ system uses electrolysis—the electrochemical splitting of water into its components—to generate minute amounts of hydrogen and oxygen on demand directly on board a vehicle. These gases are mixed into the airflow entering the diesel engine, where they significantly improve fuel combustion. Combustion becomes more complete, the soot content in the exhaust gases decreases, and noticeably less diesel is consumed per km driven. The key strategic advantage of this approach: The HydraGEN™ system is an external retrofit solution that can, in principle, be installed on any existing diesel engine without interfering with the engine control system or requiring extensive modifications. For fleet operators with hundreds of vehicles expected to remain in service for many years, this is a decisive advantage over completely replacing them. In particular, the heavy-duty versions HG4C and HG6C for massive engines with up to 90 litres of displacement—such as those found in mining vehicles or power plant generators—target a segment for which there is simply no affordable electric alternative.

dynaCERT's second strategic pillar is at least as exciting: linking the technology to the trading of CO₂ certificates. The company's proprietary telematics platform, HydraLytica, comprehensively records and documents every litre of fuel saved and every ton of CO₂ emissions avoided. Since the official recognition of the dynaCERT methodology by the accredited carbon market standards organization, Verra, this data has served as the basis for generating tradable CO₂ credits. The principle is simple: Fleet operators not only save on diesel costs but also generate credits that they can sell on the global carbon market. This dual return from fuel savings and credit proceeds could dramatically shorten the payback period for the initial investment and make the purchase decision a no-brainer for many companies.

International expansion is taking shape. The company's intensified engagement in Vietnam in the spring of 2026 deserves particular attention. In a country with over 3.5 million registered heavy-duty commercial vehicles, high fuel prices, and ambitious government climate targets, pilot projects were launched in the logistics hubs of Ho Chi Minh City, Hanoi, and Haiphong. At the same time, a scientific collaboration was established with Ho Chi Minh City University of Technology (HCMUT) to validate the technology under local operating conditions—a smart move that builds credibility on the ground. In parallel, dynaCERT has forged strategic partnerships with players in the Vietnamese oil and gas sector, which are intended to serve as distribution channels. With the recent leadership change—former COO Kevin Unrath took over as CEO, while founder Jim Payne ensures continuity as Chairman of the Supervisory Board—dynaCERT has signalled that the focus is now less on development and more on sales.

This is also necessary, as the commercial breakthrough investors have been waiting for years must finally translate into measurable revenue. Until that happens, dynaCERT is considered a high-risk stock. The share is currently trading in Toronto at around CAD 0.13 (about EUR 0.08 on German exchanges), corresponding to a market capitalization of approximately CAD 65 million—a modest valuation given the target market potential. The research firm GBC sets the price target at CAD 0.93, which would correspond to upside potential of over 600%. But the path ahead is paved with significant hurdles. The company is still burning through significantly more money than it is taking in. Further dilution through new capital increases is therefore likely. Anyone investing here is betting on a turnaround—and that could come sooner than expected if the Vietnam strategy and the Verra model take off together.

APPROACH 2: MORE POWER IN THE TANK

While dynaCERT attaches visible hardware to the engine, Innospec takes an approach that is invisible to the naked eye. Here, the focus is directly on the fuel's chemical composition. The Colorado-based company offers advanced additives for diesel, gasoline, kerosene, and marine fuels. These chemical additives clean the fuel injectors, optimize combustion directly within the cylinder, and prevent harmful deposits. As a result, engines achieve a demonstrable increase in efficiency, consume less fuel, and emit lower levels of CO₂ and soot particles. They also experience fewer breakdowns. Like dynaCERT, Innospec benefits from increasingly stringent global emissions standards and the pressure to decarbonize, which is forcing fleet operators and refineries to blend in these highly efficient additives. Instead of offering interchangeable commodity chemicals, the group—founded in 1938—now occupies high-margin technology segments. Monetization occurs not only through product sales, long-term supply contracts, and technical services, but also through direct on-site collaboration: the company's scientists often work directly at customers' sites to solve chemical problems. This creates deep integration into the supply chain and ensures high switching barriers.

The business model is particularly interesting structurally because it extends beyond the Fuel Specialties segment, which accounts for approximately 38% of revenue. Another 34% comes from the Performance Chemicals division, which drives sustainability for modern consumer goods. Innospec is a leader in the development of sulphate-free and bio-based ingredients that are increasingly in demand among consumers, particularly specialty ingredients, mild surfactants, and formulation components for cosmetics and cleaning products, as well as for the agrochemical and construction industries. Added to this is the Oilfield Services division, which accounts for about 28% of revenue. This segment supplies oil and gas companies with specialty chemicals for drilling, oil production, and shale gas extraction. As with engines, the additives here also reduce friction, prevent corrosion in drill pipes, and optimize flow in pipelines.

As a profitable and crisis-tested niche market leader, Innospec serves as a solid counterpoint to more speculative pure-play hydrogen or cleantech stocks. However, it also offers less growth momentum, as reflected, not least, in a sideways trend on the charts. The balance sheet is in excellent shape, with a net cash position of nearly USD 290 million, and allows for regular share buybacks. The market capitalization of approximately USD 2 billion is only slightly above the annual revenue of USD 1.78 billion achieved in 2025. At a current price of about USD 80.00 (EUR 68.50 on German exchanges), the price-to-earnings (P/E) ratio for the current year is just under 17, which appears moderate by US standards.

APPROACH 3: MOLECULAR ARMOUR

At the other end of the risk spectrum is a company rooted in the Swiss tradition of precise, patient, high-quality engineering: OC Oerlikon, headquartered in Pfäffikon in the canton of Schwyz. What Oerlikon does is also invisible to the naked eye, but has become indispensable to the functioning of modern high-performance engines. Its core competence lies in so-called PVD thin-film coating. PVD stands for "Physical Vapor Deposition": a process in which materials such as titanium or carbon are vaporized in a high vacuum and then deposited on metal surfaces layer by layer at the atomic level. The result is coatings that are often thinner than one-thousandth of a millimetre yet possess properties that far exceed those of the base material. Under the brand name BALINIT—and particularly in the product family of so-called DLC coatings, short for "Diamond-Like Carbon"—the subsidiary Oerlikon Balzers has brought a technology to market maturity that is literally found in almost every modern car. These coatings significantly reduce friction losses and are therefore ideal for use in engine components such as fuel injection systems, valve trains, and pistons. In other words: Wherever metal meets metal and energy is lost through friction, Oerlikon can use an atomically precise coating to ensure that this loss is reduced to a physical minimum.

The benefits of these coatings are manifold: greatly improved wear resistance and durability of the components, while reduced friction losses increase performance. Oerlikon operates over a hundred coating centers worldwide and works directly with the production lines of the largest automotive and commercial vehicle manufacturers. This is not a niche business waiting for its breakthrough—it is an established standard long anchored in series production. Yet the company is more than just a coating firm and automotive supplier. Oerlikon products are also used in the aerospace industry, among other sectors.

In recent years, the company has evolved into a more focused industrial group through the targeted divestiture of non-core business units. The recently completed divestiture of the polymer and textile machinery business improved the equity ratio from 25% to 41%; in addition, a special dividend of CHF 0.65 was distributed in March—a clear signal that the balance sheet of the group, which has faced difficulties several times in its history, is increasingly improving. With annual revenue of around CHF 1.6 billion and a market capitalization of CHF 1.1 billion, Oerlikon plays in roughly the same league as Innospec. The stock is currently trading at around CHF 3.75 (about EUR 4.07 in Germany) and is reasonably valued with a P/E ratio of 16. Even after the special dividend, the stock remains attractive—especially for value-oriented investors—with an expected dividend yield of more than 5%.

THREE STOCKS – THREE DIFFERENT PROMISES

The energy transition in freight transport will not be achieved in a single, giant leap, but in a thousand small ones—in every engine, every fuel injector, every piston surface that is made more efficient. dynaCERT, Innospec, and OC Oerlikon are three very different bets on this quiet but powerful trend. For speculative investors, dynaCERT is one of the most fascinating turnaround stories in the cleantech sector, albeit with immense risk. For investors with a moderate risk appetite, Innospec is likely an interesting alternative. For conservative investors who value high dividends, OC Oerlikon is the safest haven. All three companies share a conviction: Getting the most out of existing engines is not a technological step backward, but rather, under the prevailing circumstances, the smartest path to a cleaner world.