Market
Equities Research - Market Bulletin
November 20, 2020 6:38 AM ET
Major Growth Approaches for dynaCERT as ESG and Carbon Credit
Powerhouse
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Look for major investment to flood
into dynaCERT Inc. (TSX: DYA) (OTCQB: DYFSF) (Frankfurt: DMI)
once VERRA Authority clears dynaCERT’s Carbon Credit
application, establishing a novel auditable mechanism that will
provide solutions and opportunities to all levels of
governments, organizations, and businesses globally.
Mark
Carney, ex Goldman Sachs banker, and former Governor of the Bank of
England and Bank of Canada, issued the keynote address at the Green
Horizon Summit held Nov. 9 - 11, 2020. The summit’s theme was 'The
Pivotal Role of Finance'. Mark Carney stated the transition to
net-zero 'represents the greatest commercial opportunity of our
time'. Mark Carney is now with the giant renewables company,
Toronto-based Brookfield Asset Management as Vice Chairman and Head
of ESG and Impact Fund Investing. The Summit was well attended
(virtually) from around the globe. Other noteworthy speakers at the
summit included Microsoft co-founder Bill Gates, former New York
mayor Mike Bloomberg, BlackRock CEO Larry Fink, UN Secretary General
Antonio Guterres, European Central Bank chief Christine Lagarde,
Britain’s Prince Charles, and PM Boris Johnson.
In his speech on Monday, November 9th, at the Green Horizon Summit
in London, Carney added that companies were under increasing
pressure from investors, regulators, and governments to implement
climate related policies, including moving to net-zero emissions.
Total investments required to enable a transition in the energy
sector will be $3.5 trillion a year, while as much as $135 billion
per year will flow to carbon capture and biofuel technology, and
additional funds will be needed for the research and development of
new technologies, according to the Building a Private Finance System
for Net Zero report.
Speaking in an interview on Bloomberg Television, Carney said ESG
investing, in which fund managers consider Environmental,
Social and Governance issues alongside traditional
financial metrics, isn’t sufficient to accomplish the goals of
dramatic emissions reductions. “It has other benefits, but the
‘E’ of ESG -- first off -- isn’t focused on net-zero itself,”
said Carney. “We have to get to net-zero to stabilize the
temperature at any level.”
dynaCERT
Inc. (TSX: DYA) (OTCQB: DYFSF) (Frankfurt: DMI) Set for Upside Share
Price Movement as an ESG and Carbon Credit Powerhouse
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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 into a
multi-billion Fortune 500 company.
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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.
dynaCERT is on the
Cusp of a Major Catalyst
The
Verified Carbon Standard, Verra or VCS, formerly the Voluntary
Carbon Standard, is a standard for certifying carbon emissions
reductions. The VCS Program is the
world’s most widely used voluntary GHG program. Over 1,600 certified
VCS projects have collectively reduced or removed more than 500
million tonnes of carbon and other GHG emissions from the
atmosphere. Verra is associated with the Carbon Pricing Leadership
Coalition, which is comprised of major government partners and
private sector partners globally. dynaCERT clients can expect to see
top dollar in the voluntary carbon market once it’s application is
cleared for implementation.
Looking at dynaCERT’s long haul trucking market alone, a single
truck can generate as much as $3,000 in carbon credits per annum
using HG technology. dynaCERT’s plan, once it has finished going
through approval with VERRA authority, is to maintain 50% of the
carbon credit$ 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.
dynaCERT’s application is currently being dealt with, led by
Environmental-Partners of the UK.
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 (U4SSC).
Earlier this year, dynaCERT’s CEO was invited to be a keynote speaker at the World
Climate Summit in the UK (originally scheduled for November-2020).
They asked him 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.
The
following URL (
https://sectornewswire.com/dynaCERT-Presentation-Milano-Green-Forum-Nov-19-2020.pdf
) is captured copy of the dynaCERT Inc. presentation that was posted November 19,
2020 on the EDC’s Rome virtual stand during the Milano Green Forum.
The Milano Green Forum is “Conceived as the most important moment of
international debate on the environmental issues” according to the
website. The Forum is sponsored by the European Commission, European
Parliament’s office in Milan, Canada, Italian Ministry of Ecology,
Lombardy Region Council and large corporations such as Bosch and
Black Rock. The focus in the presentation has been given on Ecology
Matters, the HydraGEN™ Technology and dynaCERT’s involvement with
the U4SSC. Furthermore Dr. Barbara Kolm kindly made a statement
mentioning Canada Clean Tech and the U4SSC.
dynaCERT’s HydraGEN™ technology is proven through multiple
top-level independent lab studies in various jurisdictions around
the globe (TUV North and South in UK, PIT Group in North America,
ICAT in India, labs in the UAE, etc…) to reduce harmful emission in
diesel transport trucks and improve fuel economy. Transport trucks
were dynaCERT’s first target market, the Company now makes different
sized HG units and more industries are starting to adopt the
technology -- look for exponential growth across multiple sectors.
Figure 1a&b. (above) HG1 Unit installed on diesel truck.
Figure 2. (above) Various HG unit models.
12
different verticals:
Figure 3. (above) Industries served in 12 different verticals.
The
Company currently installs its HG technology on class 8 trucks,
buses, refrigerator trailers, small 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 first ships are now being organized
for installs). The Company believes it will also at some point in
the future be installing its technology on train locomotives and
ocean going vessels (which are major polluters; one container ship
can spew the equivalent pollution per annum of 50 million cars), and
it is currently working with a group in Europe to develop a unit for
passenger vehicles.
dynaCERT is gaining a strong foothold in the mining sector now,
where a single piece of large equipment can burn over $1M/year in
fuel. Feedback from mining experts and dealers servicing this
industry reveal that it is not uncommon for a capital outlay (to buy
a HG unit) to be recouped with a ROI payback within 8 months from a
nominal 5% fuel savings.
HydraLytica™ 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 Pay™
and PayPal™. Related to HydraLytica™, dynaCERT is also 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.
Shares of DYA currently trades under C$1/share and present an
opportunity for investors to experience extraordinary gains. In
fact, the Company’s CEO, Jim Payne, minces no words, he clearly
envisions dynaCERT eventually growing to becoming a Fortune 500
company. The independent investment bank GBC AG, headquartered in
Augsburg, Germany upgraded (in August-2020) its near-term price
target for DYA to $2.20/share, and sees a mid-term pathway to even
significantly higher valuations. There are over 1 billion diesel
engines in the world, including over 200 million diesel trucks --
dynaCERT’s HG units are just starting to penetrate various
industrial sectors, plus there is the entire carbon credit division
with dynaCERT taking the lead globally. Although it is still under
development and yet to begin monetization, some investment pundits
have stated a pathway to >$20+/share near to mid-term is not
unreasonable with the right news flow.
A class-8 engine HG-1 unit goes out the door to a dealer for
~C$6,200 to dynaCERT netting 50% gross margins – the math will reach
in the multi-billions of dollars in short-order as this takes off
globally. Haywood Securities performed an upside case (3 shifts/day
= 72,000 units/yr) based on dynaCERT’s current production capacity
of HG-1 units at its facility in Toronto, Ontario and derived
C$223M/annum in gross profit headed dynaCERT’s way. Then there is
the potential for refrigeration HG2 units (reefer units); there are
three times the number of reefer units than there are class-8 trucks
and many of these reefer units run 24/7 keeping food cold. Then add
in the future potential for recurring revenue streams from carbon
credit revenue as an attractive added value proposition. dynaCERT
now has ~40 dealers worldwide and is looking at serious growth
potential. In Europe 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. Additionally,
the 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). Already dynaCERT is in
discussion with other counties (e.g. India and Mexico) to build
plants.
Emerging from COVID-19, the Company has more than adequate cash
reserves (~C$20M cash entering September-2020 and virtually no
significant debt), a better Assembly Plant, an improved R&D
facility, significant product improvements, and had a backlog of
previously announced purchase orders to work through.
Look for the floodgates to open from ESG focused investment firms
once news of dynaCERT’s Carbon Credit application with VERRA comes
into play. ESG as an investment theme is predicted to accelerate
in strength in the coming year(s). Both the number of
sustainability-focused index funds, and their assets, have doubled
over the past three years. According to the financial research firm
Morningstar, at the end of the second quarter 2020, there were 534
index funds focused on sustainability, overseeing a combined $250
billion. In the U.S., which has lagged Europe in ESG investing,
assets in sustainable index funds have quadrupled in the last three
years and now represent 20% of the total.
For further DD on dynaCERT Inc. see the following URLs:
Corporate website:
https://dynacert.com
Recent Technology Journal Review:
https://technologymarketwatch.com/dya.htm
# #
This bulletin may contain
forward-looking statements regarding future events that involve risk and
uncertainties. Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual events or results.
Articles, excerpts, commentary and reviews herein are for information purposes
and are not solicitations to buy or sell any of the securities mentioned.
Contact information:
Fredrick
William
Market Equities
Research Group
f.william@marketequitiesresearch.com
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