Sales rollout from Germany
With the appointment of industry veteran Bernd Krüper, dynaCERT is moving the development of its international sales organization to Germany. The new COO, Kevin Unrath, is responsible locally. The German subsidiary dynaCERT GmbH is located at Munich Airport. The Bavarian metropolis gives the Canadian company direct access to one of the largest economic areas in Europe and the industrial belt within Germany. Strategically, this location is perfectly chosen to improve proximity to target customers and strengthen activities in the European market. This will significantly increase market presence and, through volume growth, open up additional business opportunities. The certification of the CO2-reducing technology is another aspect that enables dynaCERT to establish itself as a leading provider in the industry.
Kevin Unrath explains the decision: "By relocating our office within Germany, we want to be closer to our target customers and partners. Munich is a major hub for many key German and European industries, such as engines, commercial vehicles, construction, and industrial solutions. With the upcoming change of government in Berlin, dynaCERT GmbH expects new momentum for German sales as an industrial powerhouse in the heart of Europe. We look forward to being more accessible than ever in this region," said Mr. Unrath, Managing Director of dynaCERT GmbH.
At the prestigious Prospectors & Developers Association of Canada Conference (PDAC), dynaCERT was met with great interest from leading representatives of the mining industry and received additional orders from the oil and gas sector. These positive responses encouraged dynaCERT in its decision to expand production in order to better meet market demand. The current market rollout is well supported with a pre-production batch of 1,000 units. Customers who choose a dynaCERT solution in the coming weeks can expect immediate delivery. This shortens the usual "time-to-market" delays and enables quick access to cashflow-positive revenues in the certificate market.
An important upcoming event for the construction industry and the heavy machinery sector is the bauma in Munich, which will take place from April 7 to 13, 2025. dynaCERT will seize this opportunity to showcase its products and services at an exclusive event for potential customers, new prospects, and dynaCERT partners from government agencies, consulting firms, and logistics companies.
Fall 2024: The start of a new era
After a long lead time, it happened last October. dynaCERT's HydraGEN™ technology is now a certified process and part of the VERRA organization's range of applications. To that end, VERRA made a publication on October 4, 2024, entitled "Revised Methodology for Vehicle Fleet Efficiency" (https://verra.org/methodologies/vmr0004-improved-efficiency-of-fleet-vehicles-v2-0/). What sounds highly scientific is of inestimable value for dynaCERT because now, customers can be offered an environmental solution that not only reduces fuel consumption by at least 5% but also generates emission certificates. Large-scale carbon reductions are a major political issue, especially for fleet operators, mines, and public transport.
Given the availability of this patented technology, public pressure is likely to increase soon on the many transportation companies with their several hundred vehicles. According to official vehicle statistics, the USA leads in freight transport, with around 15.5 million trucks on the roads. In the 27 EU countries, there are still 6 million, and in Canada, there are approximately 700,000 registered heavy-duty commercial vehicles. Additionally, there are buses from public transportation companies that need to be renewed at regular intervals, mainly for safety reasons. A significant advantage lies in the application to existing vehicle fleets.
Where is the technology best used?
The greatest savings in fuel consumption – and thus also in the reduction of emissions – are achieved by the technology above all in so-called "endurance runner" applications. These include long-haul trucks, mining trucks, oil and gas drives, and power generators. Our technology is equally effective in the field of rail drives, ocean-going vessels, and river shipping. dynaCERT makes it possible to retrofit existing systems without the need for costly new purchases of vehicles or power generators. In this way, we also contribute to the circular economy concept, based on the principle of "upgrading instead of discarding."
The sales potential for the coming months is now clear. dynaCERT should now be able to invoice several orders based on the many preliminary discussions held in recent months. The Company has been particularly active in the mining sector of late. Fuel savings and the revenue from certificates lead to full amortization of the entire investment in less than 12 months.
Interim conclusion
dynaCERT has invested around CAD 100 million in its 20-year history to produce a product ready for series production. With the recent certification by VERRA, worldwide distribution can start under new conditions. As awareness grows, it is even conceivable that politicians will pass a law requiring new vehicles to be equipped with dynaCERT. For years, diesel generators, in particular, have been criticized for emitting excessive amounts of climate-damaging substances. The public has a great interest in anchoring this topic through international regulations. With dynaCERT technologies, it is possible to implement ESG-compliant solutions in the vehicle market in terms of area. The potential could prove to be exponential with corresponding sales dynamics.
The dynaCERT share has now adequately priced in all risks. Investors should look to the opportunities of the sales rollout in the coming months, as the Company now presents a comprehensive and certified product offering at conferences worldwide. The current market capitalization of just under CAD 70 million is a small amount, given the range of ESG-compliant solutions and the significant expansion of business opportunities in the future. With the current setup, dynaCERT should be able to achieve a significant market position in the hydrogen ecosystem in the coming months. A multiplication of the stock price is conceivable at any time from the current level.
COO Bernd Krüper gave an update on current developments at the International Investment Forum on February 25. Click below for the presentation. youtu.be/S0HGBVEsqcg
In addition, Mr Krüper attended the PDAC conference in Toronto in March. In an interview with Stockhouse he gives a deeper insight into the current positioning and the sales strategy for the coming months.
This update is based on the initial report 11/2022
