CIPHER NEUTRON EXECUTIVE SUMMARY – DOWNLOAD PDF

EXECUTIVE SUMMARY

Cipher Neutron, a pioneering research and development firm based in Toronto, Canada, is the first company in North America and outside Europe to commercialize the highly efficient Anion Exchange Membrane Electrolysis Technology (AEM). With its existing line of globally marketed products, Cipher Neutron is at the forefront of enabling the exponentially growing Green Hydrogen Production markets. The AEM technology offered by Cipher Neutron represents the latest global solution for producing affordable, high-pressure, high-volume Green Hydrogen. AEM is now regarded as the premier solution for current Green Hydrogen production needs.

LATEST AEM ELECTROLYSIS VERSUS EXISTING PEM ELECTROLYSIS

Traditional PEM electrolysers, currently the dominant source of Green Hydrogen, use highly expensive and rare Platinum Group Metals such as Platinum, Iridium and Ruthenium (“PGMs”). Using such PGMs in PEM electrolysers undoubtedly raises questions regarding supply chain availability as well as the sustainability of Green Hydrogen projects and their much higher costs and ESG qualifications. Mining these PGMs also entails a concerning large negative impact on the environment. Of note, each single 1-Megawatt PEM electrolyser requires up to 2 kilograms of PGMs which produce more than 100 tonnes of CO2e during their mining and refining process and such PEM electrolysers, on average, will only last 5 to 7 years.

Cipher Neutron’s advanced AEM Technology does not use any PGMs which makes our AEM Technology the most sustainable, affordable and environment friendly electrolyser technology.

As important, Cipher Neutron has achieved 81.73% efficiency versus the 77.00% industry average (thereby offering Lower Operating Expenditures for end users of Megawatt hydrogen projects), longer lifetime for AEM membranes and up to 30% price reductions as compared to PEM electrolysers (thereby Lower Capital Expenditures for end users of Megawatt hydrogen projects).

USE OF HARMFUL PFAS CHEMICALS IN EXISTING TECHNOLOGIES

One of the key components of PEM electrolyser technology is the PFAS chemical based membrane. The manufacture and utilization of PFAS chemicals are becoming subject to increasingly tough regulations. The European Commission banned the use of certain PFAS chemicals in a number of applications, including fire-fighting foams in 2021, intending to limit their use to applications of critical societal importance, while the European Union may potentially restrict all uses of PFASs by 2025. Other countries, such as the USA and Canada have also recently tabled new proposals to curtail the use of PFAS.

EXPONENTIALLY GROWING GREEN HYDROGEN DEMAND

The Green Hydrogen market is growing exponentially, and Cipher Neutron is growing exponentially within the Green Hydrogen Economy. Green Hydrogen is currently made mainly with Alkaline, PEM and AEM Electrolysers, and represents less than 5% of global hydrogen production at the present time.

Currently, the world’s hydrogen requirements are supplied by a technology which produces 10 tonnes of Carbon emissions for every tonne of hydrogen produced. This process, called steam methane reforming, is a large concern for environmentalists, ESG proponents and governments concerned with global warming and pollution. Existing hydrogen production is responsible for more than 900,000,000 tonnes of CO2 emissions per year or over 2.25% of all global CO2 emissions. As a result, switching hydrogen production to low-emission Green Hydrogen is a global priority.

The universally accepted solution is to replace existing high carbon intensive hydrogen production with low carbon Green Hydrogen. Last year, global hydrogen sales totaled over USD 150 Billion and 95% of such hydrogen consisted of polluting hydrogen. By 2050, global hydrogen demand has been forecasted to rise to USD 2 Trillion and 70% of such hydrogen or USD 1.4 Trillion will be Green Hydrogen. The demand for AEM Green Hydrogen Electrolysers is forecasted by Cipher Neutron to reach possibly hundreds of millions of units in the near future just to satisfy existing known Green Hydrogen projects.

At Cipher Neutron, we understand the important need to stay ahead of the curve with continuous innovation, and so we dedicate a substantial effort in advanced R&D in developing proprietary hydrogen solutions as well as maintaining our leadership role in AEM Technology and our upcoming Reversible Fuel Cell Technology.

GLOBAL COLLABORATIONS OF CIPHER NEUTRON

We also partner with universities in Canada and globally, especially with those who have achieved, in their own right, similar disruptive milestones as Cipher Neutron. Partnerships also include working with industry operators such as mining companies and EPC engineering firms that are charged with multi-Megawatt international projects. Cipher Neutron has also partnered with dynaCERT Inc., a Toronto Stock Exchange listed company, which has been operating for 20 years in the electrolyser production and development business. Cipher Neutron shares the advanced R&D facilities of dynaCERT in Toronto (Canada) as well as its semi-automated assembly line which can initially be used by Cipher Neutron to deliver commercial quantities of our advanced AEM Electrolisers commencing in Q4 2023.