Investment View: High-Conviction
Non-CO2 Aviation Effects:
Verified Technical Solution
Consolidated due diligence confirms DM-XTech's tLCAF technology addresses the critical EU regulatory bottleneck for contrail mitigation.
vs. Jet A-1. Validated by TERC Sheffield. Virtually eliminates contrail visibility.
vs. 600 ppm Standard. Removes sulfate aerosol formation entirely.
Improvement in Specific Fuel Consumption (SFC) due to high H/C ratio.
Executive Summary: The global aviation sector is pivoting to address non-CO2 effects (contrails, soot) under EU Regulation 2024/2493. Our analysis verifies that DM-XTech’s tLCAF (Transition Low Carbon Aviation Fuel) presents a viable, immediate solution. By utilizing a "clean fossil" approach compliant with ASTM D1655, it achieves reductions comparable to synthetic fuels without the "valley of death" scaling risks of SAF.
Technical Verification: TERC Test Data
Results from the Honeywell 131-9A APU testing (Appendix A) provide the empirical foundation for the investment. The data proves tLCAF removes the "seeds" (soot) necessary for persistent contrail formation.
Emissions Comparison
Source: Appendix A - LCAF TERC Test Results (Honeywell 131-9A)
The Soot-Contrail Link
Contrails form when water vapor condenses and freezes on soot particles emitted by engines. The 94.7% reduction in particle number (from $4.2 \times 10^{15}$ to $2.2 \times 10^{14}$ #/kg) drastically raises the threshold for ice crystal formation (Schmidt-Appleman Criterion). Without these "nucleation sites," persistent contrails cannot form in most atmospheric conditions.
Secondary Technical Gains
- ✔ Lubricity Solution: Uses a "Pure Hydrocarbon" approach (no polar additives), meeting ASTM D1655 Annex A1 without filter-clogging risks.
- ✔ Density Compliant: Tested at 791.4 kg/m³ @ 15°C, well within the jet fuel specification range.
- ✔ Drop-In Ready: No engine modifications required; fully compatible with existing fueling infrastructure.
Corporate Provenance
Clarification of the licensing structure mitigates initial "new company" risks. The UK entity is the commercial vehicle for established IP.
DM-XTechnologies Inc.
Philippines
- • Est. 2019
- • Core IP Holder
- • Technical R&D Hub
DM-XTech UK Ltd
United Kingdom
- • Inc. May 2024
- • Commercial Vehicle
- • Western Market Rights
Supply Chain: The "Transition" Advantage
Unlike SAF, which requires building new bio-refineries (CapEx heavy, 5+ years), tLCAF uses Ultra-Low Sulfur Kerosene (ULSK) from existing refineries. This enables a 2026/2027 deployment timeline.
Regulatory Timeline
EU ETS Expansion Drivers
Monitoring Mandate
EU requires reporting of non-CO2 effects (soot, NOx, contrails) for all flights.
Market Verification
Airlines seeking "Non-CO2 Certificates" to mitigate future tax liabilities. DM-XTech enters pilot phase.
Commission Report
EU Commission to report on expanding ETS to *charge* for non-CO2. Expected implementation of penalties.
Revised Risk Assessment
Visualizing the impact of due diligence. The "Revised" area (Teal) represents a significantly expanded viability profile compared to the "Initial" assessment (Slate), driven by the disclosure of the Philippine licensor and the TERC test data.
Soot Risk (Low): TERC data confirmed >98% reduction, removing technical ambiguity.
Maturity (Medium): Philippine operational history (2019) validates business continuity.
Path (Low): ASTM D1655 confirmed to have no minimum aromatic spec.