Information on the Target

DeCarice is an innovative company specializing in hydrogen injection technology that effectively replaces up to 90% of diesel fuel while maintaining equivalent power output. This approach significantly reduces carbon emissions by up to 85%, positioning DeCarice as a leader in the transition towards more sustainable heavy-duty machinery. The company's dual-direct injection system offers practical solutions to the pressing issue of decarbonization in the heavy industry sector, facilitating a greener future.

Founded by Goran Bozic and Professor Shawn Kook, DeCarice has emerged from extensive research conducted at the UNSW Engine Research Laboratory. The technology has garnered significant interest from major engine manufacturers in South Korea and Japan, along with industrial diesel fleet operators who appreciate the potential for both decarbonization and operational efficiency.

Industry Overview in Australia

Australia is positioning itself as a global leader in green hydrogen production, with increasing investments slated from both public and private sectors. The Australian Government has committed over AUD 500 million to develop hydrogen hubs across rural Australia and aims to establish the country as a leading green hydrogen exporter by 2030. This ambitious target includes achieving a cost of less than AUD 2/kg for production and developing a reliable export supply chain.

As international markets, particularly Japan and South Korea, face land constraints limiting their domestic production capabilities, they are increasingly looking to Australia for green hydrogen solutions. This shift presents significant opportunities for Australian companies like DeCarice to deliver viable alternatives to fossil fuels, capitalizing on foreign investment and demand.

Beyond Australia, substantial investment is also being made in the United States, with the Regional Clean Hydrogen Hubs Program (H2Hubs) funding up to $7 billion for the establishment of multiple regional clean hydrogen hubs. This trend underscores the growing importance of hydrogen as a key element in the global transition to cleaner energy sources.

The challenges inherent in decarbonizing heavy machinery and industrial operations are substantial, particularly regarding the energy density of alternatives to diesel. Hydrogen stands out due to its higher gravimetric density compared to traditional fuels, making it an attractive and practical option for larger vehicles that operate under strict weight and volume requirements.

The Rationale Behind the Deal

The investment in DeCarice was motivated by its groundbreaking technology, which addresses significant gaps in the electrification of heavy-duty vehicles and industrial applications. As the heavy industry scrambles to meet net-zero emissions targets, solutions that effectively decouple performance from fossil fuel use are imperative. DeCarice's hydrogen injection system presents a robust alternative, enabling existing diesel infrastructures to reduce emissions without compromising performance or functionality.

Furthermore, the growing urgency around decarbonization, coupled with heavy investments in hydrogen technology in Australia and overseas, provides a timely opportunity for DeCarice to scale its operations and contribute to environmental sustainability while tapping into a rapidly expanding market.

Information About the Investor

Investible’s Climate Tech Fund is committed to backing innovations that address climate change challenges. The Fund has a proven track record of supporting technologies that align with sustainable development goals. By leading DeCarice's pre-seed funding round, Investible aims to accelerate the company's growth and deployment phases, establishing a partnership that leverages both financial support and industry expertise.

The team at Investible is comprised of experts from various fields, ensuring strategic guidance and insight to help navigate the complexities of scaling clean technology enterprises. Their involvement is aimed at ensuring DeCarice not only develops its technology further but also successfully brings it to market.

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Assessing the investment in DeCarice, there are several compelling factors that suggest this could be an excellent opportunity. The pressing need for decarbonization in heavy-duty industries, alongside the technological advancements made by DeCarice, positions the company favorably in a growing marketplace. As traditional diesel assets face increasing risks of becoming stranded, the shift towards alternative fuels, especially hydrogen, becomes critical.

The competitive edge that DeCarice holds—being able to significantly reduce emissions while maintaining diesel performance—addresses a critical need in the market. This unique proposition can drive adoption among industrial clients seeking to meet regulatory requirements while minimizing operational disruptions.

Moreover, the strategic investments in hydrogen infrastructure within Australia and the international demand for green hydrogen are prime indicators that DeCarice is entering a favorable environment. Collaborations with major engine manufacturers and industrial operators enhance the company's visibility and potential market share.

Overall, the combination of strong technology, growing market demand, and strategic investment signifies that the investment in DeCarice is not just timely but may yield substantial returns in the rapidly evolving landscape of sustainable fuels.

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