dynaCERT is investing $17.5m in Cipher Neutron as part of a wide-ranging collaborative R&D partnership to develop green hydrogen and AEM electrolyser technology.
Under the agreement, dynaCERT plans to invest via common share options at various prices granted by Cipher Neutron and may exercise such options at various expiry dates up to July 31, 2025, providing up to a 50% ownership based on current shares outstanding on an undiluted basis.
dynaCERT has committed to exercise options in amounts ranging up to 50% of the net proceeds of any equity financing up to a maximum of $5m at “favourable seed capital exercise prices” of Cipher Neutron equity. When dynaCERT exercises such options, it may own 25% of the technology company on an undiluted basis.
The proceeds will help develop an International Hydrogen Research & Development facility in the Greater Toronto Metropolitan area, which will enable the development of AEM250 Kilowatt Electrolysers, and establish the necessary Production and Quality Control facilities for the company’s line of Reversible Fuel Cell models, and AEM Electrolyser models.
Cipher Neutron plans to expand the development of dynaCERT’s previously announced AEM electrolysers by developing:
a 5kW AEM Electrolyser that can meet the commercial specifications of potential clients internationally;
a 50kW AEM Electrolyser that can meet the commercial specifications of potential clients internationally;
a 250kW AEM Electrolyser that can meet the commercial specifications of potential clients internationally;
a line of Reversible Fuel Cells to meet the growing variety of customer’s emerging needs internationally;
and a production facility meeting the suitability requirements to offer these products to international clients in a timely and reliable manner and on a cost competitive basis.
The 5kW AEM Electrolyser is planned to be market ready by Q4, making it the largest capacity single-stack AEM Electrolyser commercially available today, the company claims.
In a bid to target off-grid communities, including but not limited to cottages, remote villages, and islands, Cipher Neutron plans to launch by Q1 2025 its 5kW and 10kW Reversible Fuel Cells.
dynaCERT has high hopes to become “the leader in the development of innovative solutions for a carbon restricted economy” while Cipher Neutron is a rapidly growing disruptive technology company focused on electrolysers for green hydrogen production and reversible fuel cells for power generation and energy storage solutions.
Cipher Neutron combines a global group of collaborating scientists that team up with engineers, technology developers, experts in hydrogen technology, investment bankers and people that have worked in hydrogen and power generation for decades.
AEM is considered as a superior hybrid solution combining the benefits of both PEM electrolysers and Alkaline electrolysers. The major issue with PEM technology is the high cost owing to the use of precious metals such as Platinum and Iridium as catalysts.
AEM does not require such precious metals making it more sustainable and cost effective than PEM electrolysers. The major drawback in Alkaline electrolysis is its low current density and highly corrosive alkaline solution used as the electrolyte. The AEM technology offers higher current density using significantly reduced amounts of corrosive electrolytes compared with alkaline electrolysers.
One of the major hurdles of green hydrogen is its high production cost. A typical commercially available electrolyser consumes more than 51kWh of energy to produce 1kg of Hydrogen or 77% efficiency (based on High Heating Value calculations of H2 Gas). Cipher Neutron’s and dynaCERT’s jointly developed 5kW AEM Electrolyser slashes the energy consumption down to 48kWh, thereby achieving 82% efficiency.
Its AEM electrolyser can produce more Hydrogen per kWh than typical commercially available electrolysers and enables Green Hydrogen at affordable prices. For example, if clean electric power were available to a customer at 4 cents per kWh, the Green Hydrogen production cost of its 5kW AEM Electrolyser would be under $2 per kg of green hydrogen.
On a larger scale, CN and dynaCERT’s 1MW AEM Electrolyser will be designed to achieve the production of 498kg of hydrogen per day, compared with 470kg of the current lesser efficient electrolysers commercially available today.
This 28kg difference in daily production of hydrogen equates to powering 36 compact Fuel Cell cars travelling up to 100km without producing any CO2 emissions. This travel distance would otherwise represent over half a tonne per day of CO2 emitted into the atmosphere from typical gas powered Internal Combustion Engine cars assuming a fuel economy of 7 Litres/100 kilometre.
Using Graphene Slurry for hydrogen storage eliminates the requirement for Hydrogen compressors and Cipher Neutron’s research team has applied for a patent relating to the technology.
Cipher Neutron’s polymer acid electrolyte-based Reversible Fuel Cell with Graphene Slurry has the similar energy density as Lithium-ion batteries. This non-toxic energy storage method combines a lower carbon footprint, affordable recycling options and unparalleled safety, especially for residential and commercial applications
Gurjant Randhawa, M.Eng., P.Eng., President and CEO of Cipher Neutron, said both companies share ambitions for transforming and accelerating the energy transition.
He said, “Our portfolio of technologies can help place both companies at the forefront of tackling climate change with practical and implementable solutions. We are enthusiastic to be supported by dynaCERT in its ambitions for a more sustainable future.
“There is enormous global demand for green hydrogen and clean energy … we look forward to working with dynaCERT on a variety of AEM Electrolyser and Green Hydrogen projects in Canada and around the globe, the many plans that will help to enable industries and the world to move beyond the detrimental effects of fossil fuels.”
Jim Payne, President and CEO of dynaCERT, said while maintaining and supporting its current HydraGEN™ technology and network, world-wide, it is proud to expand its relationship with Cipher Neutron, a highly respected and skilled partner with a proven track record in AEM Electrolysers.
He said this collaboration will help strengthen its supply chain and underpin its ability to deliver on our growing AEM Electrolyser initiatives.
He said, “For the rapidly developing hydrogen rconomy, this collaboration is a game-changer. By bringing together one of the most highly regarded Green Hydrogen and fuel cell companies in Canada which operates globally, and with dynaCERT’s technology and manufacturing capabilities, we are designing the potential for future volume and scale for Green Hydrogen that hasn’t existed until now in most parts of Canada.
“This partnership confirms Cipher Neutron’s world class position in flow field design and catalyst coated membranes, the key performance-defining components of our AEM Electrolysers and Reversible Fuel Cells.”
