dynaCERT CEO Jim Payne on VERRA certification, carbon credits, and the advantages of HydraGEN for diesel engines

It's quite simple. We have developed a technology for retrofitting existing combustion engines that allows users to save so much fuel, typically 5% to 20%, that the purchase can pay for itself in the first year. Our hydrogen technology also prevents the emission of CO2 and other pollutants. Thanks to VERRA certification, our customers can now also receive CO2 certificates for their savings, which is another reason to buy.

VERRA is a non-profit organization that designs and implements market-based programs to tackle climate change and support sustainable development. Its purpose is to provide frameworks for businesses, governments, and organizations to measure, report, and verify their environmental and social impacts, particularly related to carbon emissions and sustainable development goals. By creating transparent and credible standards, VERRA helps facilitate the implementation of projects that contribute to mitigating climate change and promoting sustainable practices worldwide.

dynaCERT is a company that specializes in developing and manufacturing carbon emission reduction technologies for internal combustion engines, with a focus on reducing emissions of nitrogen oxides (NOx), particulate matter (PM), and carbon dioxide (CO2). Achieving certification under VERRA's standards can provide several benefits for dynaCERT.

The VERRA certification adds credibility to dynaCERT's emission reduction technologies by demonstrating compliance with internationally recognized standards for carbon emissions reductions, while significantly reducing ones Carbon Footprint.

We also believe that the VERRA certification will enhance dynaCERT's market access by demonstrating its commitment to environmental responsibility and sustainable practices, potentially opening doors to new partnerships and customers who prioritize sustainability.

Our certification under VERRA's standards will enable dynaCERT to generate carbon offset credits for the emissions reductions achieved by its technologies. These credits can be sold or traded on carbon markets, providing a reacurring revenue stream for both our customers and the company.

Last but not least, I am sure that the VERRA certification signals to our investors, dynaCERT’s commitment to environmental stewardship by adhering to rigorous standards in measuring and verifying its environmental impact. This can enhance investor confidence and support future growth efforts.

Overall, our VERRA certification will help dynaCERT differentiate itself in the market, enhance its reputation, and unlock new opportunities for growth and sustainability.

The dynaCERT customers can benefit from the VERRA certification in several ways. The certification provides assurance that these emission reductions are accurately measured, verified, and credited, contributing to their environmental sustainability goals.

Additionally, customers may generate carbon offset credits through VERRA certification, which can be monetized or used to offset emissions-related costs, potentially leading to cost savings over time.

The certification also ensures that emission reductions achieved through dynaCERT's technologies meet or exceed internationally recognized standards. This can help customers demonstrate compliance with regulatory requirements related to emissions reduction and ESG reporting, reducing the risk of non-compliance penalties and reputational damage.

Don’t forget, being associated with a VERRA-certified technology can differentiate dynaCERT customers in their respective markets. It signals a commitment to environmental responsibility and sustainability, which can enhance brand reputation and attract environmentally conscious consumers, partners, and investors.

VERRA-certified emission reduction projects may also be eligible for various funding opportunities, grants, and incentives aimed at supporting sustainable development initiatives. dynaCERT customers implementing VERRA-certified technologies may have access to these financial resources to support their sustainability efforts.

Overall, the VERRA certification provides dynaCERT customers with tangible benefits related to environmental performance, cost savings, compliance, market differentiation, and access to funding opportunities, ultimately supporting their sustainability goals and driving positive impact.

Yes, there can be national differences for dynaCERT customers, particularly in terms of regulatory requirements, market conditions, and incentives related to emissions reduction and sustainability.

Adapting to these differences and tailoring strategies accordingly can help our customers navigate diverse markets and maximize the benefits of implementing our emissions reduction technologies.

The issuing and trading of carbon credits is a key mechanism in carbon markets aimed at reducing greenhouse gas emissions and incentivizing emission reduction activities.

Here's an overview of how it works. First, there is the issuance. Carbon credits are generated through projects that reduce, avoid, or remove greenhouse gas emissions. These projects can include renewable energy installations, reforestation initiatives, energy efficiency improvements, and methane capture from landfills or agricultural activities, among others. When a project is developed and implemented, it undergoes a rigorous process to quantify and verify the emissions reductions it achieves. Once verified by an accredited third-party verifier, carbon credits are issued based on the amounts of emissions reduced or avoided by the project.

The second step is the verification. Verification is a critical step in the carbon credit issuance process to ensure the credibility and integrity of emission reduction claims. Independent third-party verifiers assess project documentation, methodologies, and data to confirm that emissions reductions are accurately measured, reported, and verified according to established standards and protocols, such as those developed by organizations like VERRA, the Gold Standard, or the Clean Development Mechanism (CDM) under the Kyoto Protocol.

After verification, carbon credits are registered in a central registry, typically maintained by a regulatory body or a standard-setting organization. Each carbon credit is assigned a unique serial number and tracked in the registry to prevent double counting and ensure transparency and traceability in the carbon market.

Once issued and registered, carbon credits can be bought and sold on carbon markets. Carbon markets can take various forms, including compliance markets, where companies are required to offset their emissions to comply with regulatory caps (e.g., the European Union Emissions Trading System), and voluntary markets, where organizations and individuals purchase carbon credits voluntarily to mitigate their carbon footprint or demonstrate environmental responsibility. Carbon credits are traded on specialized platforms or through brokers, where buyers and sellers negotiate prices based on supply and demand dynamics, project quality, and market trends.

When a buyer purchases carbon credits, they can retire them to offset their own emissions or demonstrate carbon neutrality. Retirement ensures that the emissions reductions associated with the carbon credits are permanently accounted for and cannot be claimed by multiple parties.

Overall, the issuing and trading of carbon credits provide a mechanism for incentivizing emission reduction activities, mobilizing investment in climate-friendly projects, and facilitating the transition to a low-carbon economy.
However, it's essential to ensure that carbon credits are issued, verified and traded transparently and in accordance with robust standards and protocols to maintain the integrity and effectiveness of carbon markets in addressing climate change.

dynaCERT's HydraGEN™ technology offers several advantages to its customers.
Our technology is designed to reduce emissions of harmful pollutants such as nitrogen oxides (NOx), particulate matter (PM), and carbon dioxide (CO2) from internal combustion engines. By optimizing the combustion process, HydraGEN™ can help customers achieve significant reductions in their environmental footprint and comply with emissions regulations.

The HydraGEN™ technology also improves fuel efficiency by optimizing combustion, leading to reduced fuel consumption and lower operating costs for customers. The technology achieves this by enhancing the air-to-fuel ratio and combustion efficiency, resulting in more complete and cleaner burn at the source, thus reducing wastage and toxins being put back into our atmosphere or landfill sites.

On top of it, HydraGEN™ can enhance engine performance and power output by improving combustion efficiency and reducing engine deposits. This can lead to smoother operation, increased torque, and extended engine lifespan, providing customers with a more reliable and efficient engine operation.

The systems are designed for easy installation and integration with existing engine systems, making it convenient for customers to retrofit their vehicles or equipment with the technology. The modular design and compatibility with various engine types and sizes ensure flexibility and ease of implementation for a wide range of applications.

Furthermore, the HydraGEN™ systems feature real-time monitoring and reporting capabilities, allowing customers to track emissions reductions, fuel savings, and performance improvements. This data transparency enables customers to evaluate the effectiveness of the technology and make informed decisions to optimize their operations.

By reducing emissions and improving fuel efficiency, HydraGEN™ technology helps customers comply with increasingly stringent environmental regulations and emission standards imposed by regulatory authorities worldwide. This can mitigate the risk of non-compliance penalties and reputational damage while demonstrating a commitment to sustainability and corporate social responsibility.

The emissions reductions, fuel savings, and performance improvements achieved through HydraGEN™ technology, result in significant cost savings for customers over the long term. The initial investment in the technology can often be recouped relatively quickly through reduced fuel expenses and operational costs, leading to a positive return on investment.

Overall, HydraGEN™ technology offers customers a comprehensive solution to address emissions reduction, improve fuel efficiency, enhance engine performance, and achieve environmental compliance, while also delivering tangible cost savings and operational benefits.

Our HydraGEN™ technology is versatile and can be applied to a wide range of internal combustion engines across various industries and applications. The technology is designed to optimize combustion, regardless of the specific type or size of the diesel engine being used.

dynaCERT's HydraGEN™ technology utilizes a process called on-demand electrolysis to introduce pure hydrogen and oxygen gases into the combustion chamber of an internal combustion engine. The H2 and O2 gases generated through electrolysis are then introduced into the engine's air intake system. The HydraGEN™ system typically includes a delivery mechanism, such as a small hose or injector, to inject the hydrogen gas into the air stream entering the engine's combustion chamber.

Once inside the combustion chamber, the hydrogen and oxygen gas mixes with the air and fuel mixture during the intake stroke of the engine's operation. This enriched air-fuel mixture has a 10x greater flame spread resulting in a more complete and efficient burn within the engine, leading to improved combustion, reduced emissions, and increased fuel efficiency.

Our HydraGEN™ unit is typically installed on vehicles or equipment with internal combustion engines in a location that allows for effective integration and operation. While the exact placement may vary depending on the specific vehicle or equipment configuration, as well as the installation preferences of the user, but ensuring optimal integration and operation to achieve emissions reduction, fuel efficiency, and performance improvement goals.

dynaCERT provides our HydraLytica, a monitoring system that allows customers to track key performance metrics of the HydraGEN™ technology, including fuel consumption and savings. This system typically includes an app on the user’s phone along with a desktop app used by office staff and a dashboard interface or software platform that provides real-time data on fuel usage, emissions reductions, and other relevant parameters.

We can accurately measure and quantify the savings in pollutant emissions resulting from the use of its HydraGEN™ technology by employing a combination of emission testing, third-party verification, onboard monitoring, emission modeling and reporting. These measurement methods provide transparency, credibility and accountability, enabling customers to assess the environmental impact of the technology and make informed decisions to support sustainability goals.

To operate our HydraGEN™ technology and produce hydrogen and oxygen for injection into internal combustion engines, electricity and distilled water are required. The heart of the HydraGEN™ system is our patented “Smart ECU” along with our unique and patented electrolysis unit, which contains electrodes, electrical connections, computer and multiple safety devices. This unit is responsible for splitting water molecules (H2O) into hydrogen (H2) and oxygen (O2) gas through the electrolysis process.

The consumption of distilled water by our HydraGEN™ unit can vary depending on factors such as the size and capacity of the electrolysis unit, the operating conditions, and the frequency of use. As an example: a class 8 truck consumes on average 2 litres of distilled water for 80 hours of operation.

Customers interested in obtaining our HydraGEN™ devices can do so through several channels as direct purchase, authorized global dealers, consultants and sales representatives along with trade shows and special events.

Yes, dynaCERT offers standard and extended warranty options for its HydraGEN™ devices to provide customers with assurance of product quality and reliability. The specifics of the warranty coverage may vary depending on factors such as the product model, region, and distributor.

Yes, while the initial sale of HydraGEN™ devices represents a significant source of revenue for us, the company has various strategies and revenue streams in place to generate recurring income from ongoing sales, service contracts, consumables, software services and product enhancements. This diversified revenue model helps support the long-term sustainability and growth of the business.

Yes, dynaCERT created a subsidiary called dynaCERT International Strategic Holdings or DISH to provide financing options to customers.

Yes, absolutely. It's plausible that VERRA certification should significantly increase sales of dynaCERT's HydraGEN™ devices, particularly in markets where environmental regulations or carbon pricing mechanisms incentivize emissions reductions and carbon offsetting.

We currently operate a computerized semi-automated assembly plant that can produce at full capacity approximately 6,000 HydraGEN™ units per month, which means about 72,000 units per year.

Let's say the average wholesale cost are approximately CAD 6,300 per unit, that would mean about CAD 453,600,000 revenue per year. The net operating profit is about 45%. At CAD 0.25 share price our market capitalisation is less than CAD 110,000,000. I will leave it up to you to figure out what potential this could mean.

We have done a lot of groundwork in building a solid foundation, testing and commercializing our technology over the past few years, it's now time for the technology to be used on a large scale, which is what experienced top managers from the scene do best. I am convinced that we have attracted Bernd Krueper, one of the world's best and most experienced top managers, to our company at the right time. We are looking forward to the future of dynaCERT as company team and shareholders.

We have always said that our technology for retrofitting existing vehicles protects the environment now and today. To use our product, all you need in addition is distilled water. All other future solutions will require considerable investment in infrastructure. For this reason, I am not surprised that the time window for our bridge technology is larger than previously imagined. I am certain that our technology will make a significant contribution to environmental protection and also create economic benefits for our customers.