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DOTZ NANO LTD (DTZ) - The Future of Carbon Capture: CEO Sharon Malka discusses leveraging advanced sorbent technology for Direct Air Capture (DAC) and point-source carbon capture.
Dive into the fascinating world of carbon capture with Dotz Nano, a trailblazer in the fight against climate change. In this episode, we chat with Sharon Malka, the CEO of Dotz Nano, who shares invaluable insights into how the company is revolutionising carbon management through cutting-edge nanotechnology. As the urgency to tackle global carbon emissions rises, Dotz Nano is not just imagining solutions but actively implementing innovative strategies that set new standards for environmental responsibility.
Learn about their advanced sorbent technology that enables both direct air capture and point source carbon capture. These solutions are not only designed to enhance efficiency but also to deliver substantial cost reductions—potentially by as much as 85%—which could transform the industry landscape. Sharon also discusses the critical importance of strategic partnerships in scaling their revolutionary technology, shedding light on how collaboration with key industry players can accelerate market penetration.
Andrew Musgrave Host
Welcome to ASX Briefs, the podcast where we explore the latest innovations, strategies and financial insights from ASX listed companies, and today we have the pleasure of speaking with Sharon Malka, the CEO of Dotz Nano Limited, a pioneering company at the forefront of carbon management and industrial nanotechnology. Dotz Nano is leveraging advanced sorbent technology for direct air capture (DAC) and point source carbon capture, providing innovative solutions to reduce global carbon emissions. The company is also gaining commercial traction with DotzShield, an in-product authentication solution for the oil and gas industry. Sharon, thanks for joining me today and welcome to the ASX Briefs podcast.
Sharon Malka Guest
Thank you very much. It's my pleasure to be here today.
Andrew Musgrave Host
Now, Sharon, for listeners that may be unfamiliar with Dotz Nano, can you just provide a brief overview of the company?
Sharon Malka Guest
Sure, Dotz Nano is a pioneering developer at the forefront of carbon management and industrial nanotechnologies. We are, at Dotz, not just imagining the future, we are building it. We are creating innovative solutions that harness the power of nanotechnology to solve some of the most pressing environmental and industrial challenges globally. Our first board in product tagging technology, DotzShield, is now commercial and we are gaining commercial traction for our solution for corrosion inhibitor monitoring. DotzEarth is our carbon capture technology and our primary focus today piloting towards commercial viability for both direct air capture and point source capture, providing innovative solutions to reduce global emissions.
Andrew Musgrave Host
Okay, and the global carbon capture market is projected to grow significantly. So how does Dotz Nano differentiate itself from competitors in this space?
Sharon Malka Guest
So, the short answer is simple, our core expertise lies in nanoengineering and material science, and we developed the world's best performing carbon capture sorbents. In more details, our proprietary technology demonstrated superior performance in both direct air capture and point source applications. It was validated by third parties, highlighting its potential to become a game-changer factor in driving the cost of carbon capture down. This is mainly due to three key drivers. One is the exceptional high carbon capture and working capacity. Two, the low energy consumption. And three, the low cost of sorbents.
Andrew Musgrave Host
Can you give us an overview of your core carbon management nanotechnologies and how you foresee them making an impact?
Sharon Malka Guest
Sure, we developed the best performing carbon capture sorbents, which are designed to offer low-cost carbon capture solutions. The first family is for DAC application. It is chemically modified sorbent for low concentration of CO2. The second family is for point source, which is specifically designed for physical adsorption. We all know that sorbent optimizations and innovation will play a major factor in cost reduction of carbon capture, and both sorbent families have demonstrated superior performance compared to commercial sorbents and have been verified and endorsed by third parties. And this includes high working capacity and selectivity, which ensure maximum efficiency, low energy consumption, which make them economically viable and stability, which enable long usage,
Andrew Musgrave Host
And Dotz Nano has recently developed a highly efficient sorbent for direct air capture, DAC, so what makes your technology superior to current industry standards?
Sharon Malka Guest
Mainly the exceptional absorption capacity and the fact that it's easily regenerable. Dotz sorbent demonstrated the highest absorption capacity for direct air capture. Actually, it is more than two times higher than the industry standard. It is also yielded significant improvements in productivity while minimizing the energy usage, and the sorbent maintains its performance over extended use, supporting longevity and reliability. And when we conducted techno-economic assessment, it suggested that our sorbent can reduce the cost of capture significantly more than 80-85% due to those key drivers the exceptional high working capacity, the low energy requirements and the low cost of capture.
Andrew Musgrave Host
And you recently completed a successful lab-scale pilot demonstration of DotzEarth CO2 capture technology, showcasing the sorbent's high absorption capacity, selectivity and robustness. Are you able to share with us the next milestone on the path to commercialization and when this is likely to be achieved.
Sharon Malka Guest
Sure, Dotz priority will be to advance the technology readiness through pilot demonstrations, ongoing sorbent optimization and establishing new strategic partnerships to support global scaling. Starting with the DAC application direct air capture application we are now running a lab-scale pilot and expecting the results in the next few weeks, and our number one priority for 2025 is to achieve an outdoor field demonstration pilot later this year in collaboration with our partners, which will be followed by a market-ready model in 2026. When we look at the point source application, we commenced already the design of a small-scale mobile unit, while we continue to optimize it with a goal to have it operational in 2026. With a goal to have it operational in 2020.
Andrew Musgrave Host
Now partnering with third parties to further develop the DotzEarth technology is a stated objective. So, who are your ideal partners or target sectors for collaboration?
Sharon Malka Guest
So, generally speaking, partnership will play a key role in our growth strategy. We have a broad partnership and licensing opportunities along both carbon capture and direct capture supply chains, and this partnership will provide us with accelerated market penetration, innovation scaling globally and risk mitigation. Our initial focus is to secure pilot projects with industry leaders to showcase real-world value. Thereafter, the next step is expanding into multiple sectors globally. What are those sectors? Industrial partners, sorbent providers, EPC company and technology company.
Andrew Musgrave Host
And congratulations on securing your first commercial order for DotzShield. So can you walk us through the significance of this milestone and what it means for future adoption?
Sharon Malka Guest
So one of the most notable accomplishments for us in 2024 was this first commercial sale of DotzShield corrosion inhibitor monitoring solution, marking a critical step in its commercialization journey. The successful sale to a leading oil and gas company in the US signals the market recognitions of our technology's value and we are excited to see its continued uptake. In addition, it demonstrates our ability and capability to develop a deep tech into a commercial, valuable solution and commercialize it.
Andrew Musgrave Host
And what industries or use cases do you see as the biggest growth opportunities for DotzShield moving forward?
Sharon Malka Guest
Oil and gas. Our first commercial solution is a proprietary marker for corrosion inhibitor monitoring. The first commercial order received followed few years of joint development with our customers that has resulted in a cutting edge solution for corrosion inhibitors management. Oil and gas industry is expected to expand in the next few years. Increased drilling and infrastructure will increase the need to corrosion inhibitors management and ensure compliance and asset longevity and, from our end, it's ensure the extension of this market.
Andrew Musgrave Host
Okay, and looking at the financial health and future outlook, Dotz recently received a further $2 million investment from Mercer Street Global. So how has this funding been deployed?
Sharon Malka Guest
So, first, the additional investment of Mercer demonstrates continued confidence in Dotz strategy and DotzEarth Carbon Capture technology. The funds will be used to maintain the strong momentum currently underway in the development of DotzEarth Carbon Capture technology.
Andrew Musgrave Host
And, given your current growth trajectory, what is your target cash burn rate for the next quarter and how do you plan to fund for future capital requirements?
Sharon Malka Guest
So we plan to maintain the level of cash use we have in the last year. We currently have sufficient cash to fund the near-term activities and we continuously assess alternatives to fund our future capital requirements, which include an unutilized funds for Mercer, non-dilutive grants and strategic collaboration and capital raises.
Andrew Musgrave Host
Okay, and just to wrap things up for investors and stakeholders what is the key message that you want to leave with them about the company's future?
Sharon Malka Guest
Well, I think that our collective achievement in 2024 has strengthened our foundation positioning Dotz to accelerate growth and expand our impact in the era. We are more confident today than ever in our ability to drive meaningful change in the carbon capture and energy solution sectors, and with a solid foundation in place, 2025 promises to be a year of accelerated innovation, collaborations and impact.
Andrew Musgrave Host
Well, Sharon, it's been great to chat today and get an update on the company, and we look forward to further updates in the upcoming months.
Sharon Malka Guest
Thank you very much for hosting me today.
Andrew Musgrave Host
That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.