DAC – Dynamic Air Cooling

Cooling is one of the key technologies of the 21st century. It provides comfort, preserves food, medicine and vaccines, and keeps the internet up and running. By 2060, we will be using more energy for cooling than for heating, and there will be 14 billion AC units in the world.

Current cooling technology has a negative impact on the environment. By mid-century, it will generate 27% of global greenhouse gas (GHG) emissions, due to 2 reasons:

• First, cooling requires a lot of electricity (largely produced by burning fossil fuels)
• Second, it uses HFCs which are 4,000 times more harmful than CO2.

Fossil fuels like coal, oil, and gas account for most GHG emissions, which trap the sun’s heat, leading to global warming and climate change. GHG emissions reached a record high in 2022 with “no end in sight to the rising trend”.

Most of the cooling devices today are based on the 100-year-old principle of adiabatic gas compression (heating) and expansion (cooling), resulting in air cooling and residual heat (thermal) emissions into the atmosphere further boosting global warming. 85% of all devices using hydrofluorocarbons must be replaced by 2035 (Montreal protocol).

Reduction of GHG emissions is required globally.

We aim to replace refrigerants equal to 90bn MT of CO2 by 2050.

Food security is also one of the most complex challenges facing the global community in the 21st century.

The world needs more refrigeration solutions as the value of cold in food security is the key - as much as a third of all food is lost or wasted between harvest and home, mostly in the developing world. Losses amount to about 1.3 billion tons per year.  Despite already high costs, food is lost or wasted throughout the supply chain, from initial agricultural production down to final household consumption. Halving food waste would feed 800 million of the 1 billion chronically undernourished people in the world (research by the International Institute of Refrigeration). Food losses represent a waste of resources used in production such as land, water, energy, and inputs, increasing GHG emissions in vain.

DAC (Dynamic Air Cooling) is an ahead-of-the-curve innovation that creates a freon-free environment, allowing for higher flexibility of storage and transportation, reducing waste throughout the supply chain, and decreasing the global environmental impact of cooling.

DAC uses a unique combination of gas-dynamic principles, allowing it to recuperate part of the thermal energy of the air and convert it into electricity. The technology’s benefits include:

• Immediate air cooling by 90°C (potentially up to 172°C) with a Tornado-like jet stream.
• Air as a cooling agent replacing HFCs.
• Low-pressure cooling (0,6-3 bar) = safer and lower-cost devices (by 30%).
• Smaller & more efficient (uses 50% less electricity) compared to conventional HFC systems.
• More affordable (30% less cost) and easy to install.
• Broad spectrum application of DAC technology cuts valuable waste by up to 5% vs conventional cooling

Our primary customers are enterprise users of cooling. Priority customer groups:

• Transportation companies
• Cold chain operators
• Refrigerated container companies
• Farmers
• Food storage companies
• Food production facilities

To understand our customers’ needs, we have conducted 60+ customer discovery interviews. Customers complained about losses associated with technical issues (freon leaks/system malfunctioning), increased cost of freons, and increasing cost of electricity. Customer discovery validated the DAC economic value proposition. 6 corporate customers wish to test the DAC system, (incl. DeLaval, Trane Technologies, LG, Maersk, RealSA, Wielton, etc). Also, larger companies and organic farmers place a higher value on the environmental benefits.

Target customer groups share similar concerns:

• High energy consumption/running cost: with increased temperatures more electricity is needed for cooling. The cost of electricity is growing. Hence, customers spend more money on cooling.
• Current cooling systems are expensive to maintain or replace. In case of freon leaks, there is a risk of goods’ spoilage.
• High environmental toll - customers feel pressure to reduce their carbon footprint, but current cooling technology does not allow this.
• High CAPEX makes it difficult to obtain new/replace old systems. E.g.: Over 27% of US refrigeration systems are older than 20 years. It leads to constant repairs, freon leaks, food spoilage, and increased
• Large dimensions and high weight of cooling equipment (that otherwise could have been taken by cargo)
• Frequent coolant leaks and as a result – the risk of refrigerated goods to be  damaged

DAC value proposition: We will be offering an easy-to-install, affordable, low costs of operation, green, no-maintenance cold unit

The inclusive aspects of freon-free DAC technology lie in its universal benefits, including environmental sustainability, health and safety improvements, accessibility, and cost-effectiveness, which all positively impact a broad and diverse range of individuals and communities.   Low- and Medium-income level consumers will benefit from the technology as the extension of the shelf life of the products may decrease the price spikes. In the situation of scarce resources by 2050, temperature changes may push up to 158 million more women and girls into poverty and see 236 million more face food insecurity.

Both men and women can experience benefits from clean refrigeration technology, yet differently. It will have a positive impact on domestic households as food spoilage will decrease and offer safer food storage, thus decreasing vulnerability to foodborne diseases and potentially optimizing caregiving duties for women.  Women, as primary caregivers and managers of household consumption, might be more attuned to the environmental benefits of clean energy. This awareness can influence household decisions towards more sustainable practices.

DAC has a diverse team of highly qualified experts, experienced in research, tech development, and supply chain leading to many successful product launches.

Our team members have published 98+ scientific works and submitted 25+ patents. DAC CEO and co-founder Pavel Panasjuk has over 20 years of experience in business development and management. He successfully launched several hardware companies in Eastern Europe with annual revenues of €12m.

DAC CTO and co-founder Oleksander Razumtsev obtained the PhD title of Doctoral Academy of the Armed Forces of Ukraine. He is the author of 25 scientific papers and 6 patents on membrane technology for the separation of liquid hydrocarbon compounds, thermodynamics, gas dynamics as well as Dynamic Air-Cooling technology.

Despite it being a relatively modest size, the Team is demographically diverse. The co-founders of DAC include 2 men and one woman. There is one woman (hired) serving in a C-suite position. DAC’s Advisory Board presently includes 3 men and 1 woman with one board seat being vacant. 

As DAC continues the development and market scaling, we will grow our team based on the principles of professionalism, competency, diversity, and inclusivity.

Our goal is to ensure engagement and expertise strengthening of all team members with attention to the underrepresented minorities. Our technology is aimed to emphasize innovation and scalability in the agri-food sector including a focus on social and economic benefits for low-income communities, providing access to efficient cooling to reduce food waste, improving living conditions, reducing energy consumption, and contributing to the environmental footprint reduction.     

Our team shares a common passion and vision to establish DAC technology as the leading sustainable AC/refrigeration technology as part of the global effort to fight against climate change.

The company has reached TRL/MRL 6 with DAC technology development.

First pilot projects with our target customers secured and planned (Toda, Sudzucker, Daikin, Piast, Wielton, Sescom, General Mills, Buhler, Trane).

The 2024 DAC risk mitigation matrix is presented below:

• The potential new entrant with a viable substitute. Risk level -  Low.
  • Constantly develop and improve DAC devices to remain on the edge of technological innovation and preserve market leadership
• Possible non-favorable changes in regulatory framework or environmental standards. Risk level -Low.
  • Increase energy savings advantage, make sure that OPEX savings overweight possible effects from changes in regulatory standards. Through relevant industry associations, engage in policy discussions affecting targeted market segments.
• Supply chain volatility. Risk level – Medium.
  • Already experienced during COVID-19- restrictions on supplies from Asian countries. Solutions will be sought that are the safest from the perspective of securing supplies - diversifying of suppliers and delivery channels and establishing co-production partnerships with OEMs.
• Lack of awareness among end users HFC phase-down process. Risk level – Medium.
  • Promotion of new cooling technology via economic benefits. Possibly (global scale) – government or nationwide AC and refrigeration equipment replacement programs (like solar, heat pumps, EV support, etc). Application of new strategies (e.g. pay per use - CaaS – ColdAsAService www.caas-initiative.org).
• Lack of ability to scale due to unpreparedness for licensing or service infrastructure. Risk level – Medium.
  • Licensing of DAC devices to OEM manufacturers is a key scaling-up factor. In preparation for the commercialization stage, DAC has already been holding negotiations with big OEMs to ensure readiness.
• Reluctance of the market to accept new technology from a startup. Risk level – High.
  • Customers prefer to use solutions from established players. To initiate the sales cycle, we must convince potential clients via pilot projects to demonstrate technology and showcase it to other potential clients. We will demonstrate reliability and economic benefits through first business cases with innovators and early adopters to demonstrate both technological advantages and economic benefits.
• Risk of technological infringement from competitors and a consequent risk of lengthy litigations. Risk level – High.
  • Pursue aggressive IP protection policy, signing NDAs and non-competition agreements with all production and development parties. We will promote DAC technology to key market stakeholders and inform them about its origin to minimize the risk of infringement and potential unfair competition

We believe that partnership with Slove will help us to:

• Get access to potential investors, and receive funding in the form of grants and/or  investments.
• Find partnerships with other companies. Having a strong technology partner could help us  get to the market faster, however, this is not something we will be pursuing until our IP is fully protected.
• Get access to strategic and legal advice from experts in the Solve network
• Gain exposure in the media and at conferences

DAC innovation is the creation of a freon-free environment, allowing higher flexibility of storage and transportation, reducing waste throughout the supply chain, and decreasing the global environmental impact of cooling.

DAC is an energy-efficient and clean cooling solution with a lower total cost of cooling. DAC uses a unique combination of gas-dynamic principles, allowing to recuperate part of the thermal energy of the air and convert it into electricity, benefits include:

• Immediate air cooling by 90°C (potentially up to 172°C) with a Tornado-like jet stream.

• DAC is ecological – no HFCs are used. Air as a cooling agent replacing HFCs.
• Low-pressure cooling (0,6-3 bar) = safer and lower-cost devices (by 30%).
• Smaller & more efficient (uses 50% less electricity) compared to conventional HFC systems.
• More reliable and affordable (30% less cost) and easy to install.

• Wide application of DAC will cut valuable waste by up to 5% vs conventional cooling.
• DAC can upgrade existing AC/refrigeration systems. Our super cold generators can be applied for building cooling, transportation, and storage of food, vaccines, medical supplies, etc. 

DAC cools down the air through a unique cycle, combining gas dynamic and thermodynamic principles: 1. Adiabatic compression of air in the compressor; 2. Adiabatic and isentropic expansion, cooling, and acceleration of air in a geometric nozzle; 3. Isothermal extraction (conversion) of the airflow kinetic energy in an air turbine; 4. Isobaric heating of air while removing heat from the cooled volume of the refrigerator. The closest similar to the DAC mixed cycle is the Brayton reverse cycle. It has significant disadvantages: low COP, thermal emissions; the need to use water for cooling; and large energy losses in real life vs the theory, especially at high pressure. DAC overcomes these shortcomings and significantly improves the efficiency (COP 3,6 at t-20°C, possible temperature delta of 170°C, portable design).

Almost all cold today is still produced by a 100-year-old vapor-compression refrigeration using HFC refrigerants. This outdated technology will become the biggest cause of global warming by 2050 - accounting for 27% of global GHG emissions:            

• HFCs are super-greenhouse gasses up to 4,000 times more harmful than CO2. 479g of the R410A (type of HFCs) equals 1 ton of CO2. Today, HFCs in AC/refrigeration units are the fastest-growing type of GHG.
• Electricity to power cooling is largely generated by burning fossil fuels. This further increases the emissions of GHG.

Emission targets agreed at international climate summits require the replacement of HFC technology. This would reduce GHG emissions by 90bn tons of CO2e by 2050. Making cooling more energy-efficient would double that.

DAC project outcomes:

• Helping to achieve climate neutrality:  calculated emission reduction by 30%
• Increasing energy efficiency: DAC will provide up to 50% energy consumption reduction
• Estimating ease of installations/retrofitting of existing infrastructural objects with DAC devices - in man/hours. 

Compared with the traditional vapor compression technology:

• DAC uses air instead of hydrofluorocarbons to transfer energy, eliminating this source of pollution.
• DAC generates no thermal emissions - in all cooling applications, energy is removed from the air that is being cooled. In traditional cooling units, this energy is then wasted the heat is disseminated into the atmosphere further boosting global warming. In DAC, the energy extracted from the cooled air is not emitted as heat into the atmosphere – instead, it is turned into electricity.

DAC team has estimated the green deal impact by 2035 for the shipping container segment (assuming 61,200 pcs 5kW DAC units installed):

• Reduction of pollution by HFCs: The average industrial refrigerator contains 1.25kg of HFC which leaks into the air. HFC Heat trapping capacity is 1,400X higher than CO2. Avoided HFC pollution will be 1,250t (equivalent to 1,750,000t of CO2 emissions).
• Energy saving: The average industrial refrigerator uses 5kW of electricity. DAC needs only 3.5 kW, translating into annual energy savings of 13,140 kWh per unit, total yearly energy savings of 13.14bn kWh. On average, 0.295 kg of CO2 is emitted to produce 1 kWh of electricity. DAC energy savings lead to a further reduction of 3,876,300t of CO2e emissions.

In terms of the AC segment, the DAC 30kW unit will allow a 50% reduction of GHG emissions (3,02 MT CO2e emissions/ device/year) compared to similar-sized HFC-based systems (6,03 MT CO2). If renewable electricity is used for power, the CO2 footprint can be reduced to zero. Detailed calculation is provided as an attachment to this application.

In conclusion, large-scale replacement of the HFC AC/refrigeration systems with DAC coolers could reduce the forecast global temperature increase by as much as 0.5°C.

DAC uses a unique combination of gas-dynamic principles, allowing to recuperate part of the thermal energy of the air and convert it into electricity, benefits include:

- Immediate air cooling by 90°C (potentially up to 172°C) with a Tornado-like jet stream. - Air as a cooling agent replacing HFCs. - Low-pressure cooling (0,6-1 bar) = safer and easier to produce devices (by 30%). - Smaller & more efficient (uses 50% less electricity) compared to conventional HFC systems. - More affordable (30% less cost) and easy to install.

Wide application of DAC will cut valuable waste by up to 5% vs conventional cooling. Summary: 30% cost reduction, 50% energy savings, 2x faster cooling, easy installation, reliable

The hardware implementation of the DAC cycle includes:

• a compressor with an electric motor and intercooler, which carries out adiabatic air compression
• a geometric supersonic nozzle, in which adiabatic and isentropic expansion, cooling, and acceleration of air are carried out
• an air turbine with an electric generator, in which isothermal extraction (conversion) of the kinetic energy of the airflow is carried out,
• a refrigeration chamber, in which heat exchange with the cooled volume is carried out.

DAC unit is connected to ventilation equipment at the inlet of a ventilation tube (in a central corridor of a mine). Cold air from DAC (temperature -45…-60°C) is mixed with fresh air (+25…+30°C) after which a combined cooled airflow (+15…+20°C) is transported to the outlet of the ventilation tube, where it cools the room. After heating, exhaust warm air is ventilated out of the room.

Dynamic Air Cooling is a novel cooling technology based on a combination of gas-dynamic and thermodynamic processes. Technology does not use any chemical coolants and in theory, can provide a temperature delta of-170°C. The largest practically achieved temperature delta so far is-92°C (7/11/2021). DAC operational principle also foresees recuperation of thermal energy of the air and generation of electrical energy to partially power the device (up to 30% from the overall consumption).

Starting from 8/2020 DAC team conducted R&D works financed by NCBR BRIdge Alfa program (Poland). The goal of the program was to create a TRL6 prototype suitable for refrigeration and application as a central air-conditioning unit. Results have to be confirmed by client trials verifying key parameters of the technology.

R&D process: Prototype construction works were fully completed in December 2021. Team has built an 18kW prototype, capable of achieving a stable temperature delta of-80°C, operating with COP 1,2 at temperatures below-20°C.Key components of the prototype include:

• Screw compressor (18kW, pressure max 8 bars, airflow 3m3/minute, outlet air temperature increase +20°C;
• Working elements-a patented system of gas-dynamic elements, calculated and produced by DAC to meet the specific parameters of compressor airflow;
• Custom air turbine fully constructed by DAC team for purposes of recuperating kinetic energy from the highspeed (450m/s) cold airflow. In the future turbine will be connected to an electric power generator.

The prototype was extensively tested in the lab, reaching peak lows of-44°C. Team made a decision to locate the Working elements and air turbine in a separate Cooling module and connect it to a compressor via a rubber hose. This decision allowed to use of different compressors for testing and demonstration purposes, as was requested by trial partners.

Conclusions: 

All conducted trials confirmed the high effectiveness of DAC technology for both air-conditioning and refrigeration purposes. In particular, the successful application of 18 kW DAC unit in the oversized cooling chamber of 1100m3, currently cooled by 80kW vapor-compression showed the great potential and effectiveness of DAC technology. At the same time, several technological issues need to be addressed in further R&D process:

• Excessive noise of the cooling process decreases the comfort of operation;
• Heat emissions from the air compressors require additional cooling.

MetalFrio, Piast and Sescom, are interested to continue cooperation with DAC in the following areas:

• MetalFrio: cooling units for drinks and snacks distribution
• Piast:
  • designing cooling unit for ready agricultural products (100m3 storage)
  • replacing 80kW freon cooling in the ,,plus storage chamber,,
  • a shock-freezing line for the production of frozen vegetables and fruits.
• Sescom:
  • prototyping a DAC AC installation for large commercial/office spaces (split system–a combination of DAC gold generator with heat exchanger and glycol-based cold distribution system inside buildings

9 full-time employees

6 years

As we continue the development and market scaling, we will grow our team based on the principles of professionalism, competency, diversity, and inclusivity. Our goal is to ensure engagement and expertise strengthening of all team members with attention to the underrepresented minorities.

Our technology is aimed to emphasize innovation and scalability in the affected sectors including a focus on social and economic benefits for the low-income communities, providing access to efficient cooling to reduce food waste, improving living conditions, reducing energy consumption, and contributing to the environmental footprint reduction. We have started to explore human and physical capital resources. Our team is involved with several global players and organizations, including NYSERDA and EIC. We plan to grow the team and manufacturing partners in the region based on the principles noted.

Our revenues come from 3 sources:

1. Selling our cooling devices. The main source of revenue for the period of 2024-2026. Price will vary based on the cooling capacity of a unit (Avg. expected price level of 500-1000 EUR per 1 kW of cooling capacity).
2. Licensing. From a long-term perspective, licensing of DAC devices to cooling equipment manufacturers will be a key scaling-up factor. This will allow us to access new markets via already existing local and regional producers. We plan to provide licenses based on kW of cooling capacity and number of units, which will provide control over separate markets as well as the development of the technology in the future.
3. By 2027 we will explore the concept of Cooling as a Service (www.caas-initiative.org/) offering a pay-per-use model for refrigeration systems.

Break-even in 2025 = further financing of development from revenues At the scaling stage, we plan to outsource most of the production. We will select manufacturers based on the technical requirements developed within this project. We will also hire service providers to install and operate the refrigeration units.

For the HVAC market segment, we arrange contracts with distributors of refrigeration equipment, among other facility management. For the segment of refrigerated containers, we cooperate with transport companies and OEM manufacturers of containers and industrial refrigeration, reaching potential end recipients through the already existing sales and distribution channels.

In the mid-term horizon, we plan to start licensing our technology to other air conditioning/refrigeration manufacturers, which will potentially allow us to scale to over 100,000 units through one partner.