AirJoule Technologies Corporation

Greetings. Welcome to the Aerojoule Technologies fourth quarter and full year 2024 earnings conference call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. It is now my pleasure to turn the conference over to Tom Devine, Vice President of Investor Relations and Finance. Thank you. You may begin.

Thank you, and thanks to everyone for joining us this morning on the company's full-year 2024 earnings call. With me today are Matt Jor, Chief Executive Officer, Brian Barton, Chief Commercialization Officer, Steven Pang, Chief Financial Officer, and Pat Eilers, Executive Chairman. During this call, we'll be referring to a presentation which is available on the webcast platform and on the investor section of our website. I would like to note that many of the comments made during the prepared remarks and during the Q&A section are forward-looking statements that involve risk and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the risk factors and the forward-looking statement section of our filings with the SEC Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance, and actual results or developments may differ materially. And now, I'll turn it over to Matt Jor.

Thanks, Tom. Good afternoon, everyone, and thanks for joining us for our year-end earnings call. We're excited to be with you today to discuss all that we have accomplished last year, as well as articulate our vision for the future. At Air Jewel Technologies, we're driven by a mission that's never been more critical, deploying innovative technologies at the nexus of energy and water. It's right there in the tagline on our logo, energy and water from air. The atmosphere surrounding us is an untapped resource of pure water. It's constantly being replenished through the natural water cycle of evaporation and precipitation. We believe that the atmosphere presents a massive opportunity to provide high-quality, and contaminant-free water, alleviating problems related to water scarcity and water contamination. The challenge is that we never had the technology to economically access that water in the atmosphere until now. AirJewel enables the lowest cost separation of water from air, greatly increasing water sustainability and improving energy efficiency for air conditioning in many industrial sectors. We're able to do this by combining advanced sorbents with our proprietary thermal energy recovery system to produce low-cost pure distilled water and dehumidified air. In our last earnings call, we talked about the strong attention we've received from customers interested in AirJewel's ability to produce pure distilled water. Those customer conversations were leading us toward a near-term focus on using AirJewel as a water solution. As we thought about AirJewel as a distributed source of water for businesses and industrial activities, we look for ways to drive down the cost of water and offer a cost-competitive alternative. We've known for years that if we add a small amount of low-grade heat to our system, it can reduce the power consumption down to less than 160 watt-hours per liter. Many industrial operations that produce large amounts of waste heat also have a significant water requirement. At data centers, for example, All of the megawatts of electricity that flow into the servers is converted into heat. The servers need to be kept cool, which is done through a cooling system that rejects the heat into the atmosphere. Or consider a power plant, which burns fuel to turn water into steam to generate electricity. A massive amount of this energy, nearly 70%, is lost to waste heat. One of the reasons we originally formed our 50-50 joint venture with GE Vrnova to commercialize AirJewel is that 25% of electricity generated around the world uses GE Vernova equipment. An air jewel can make use of the waste heat from the power plant to produce water from air. Waste heat is a vastly underutilized energy resource. While there are technologies in the market that can harness very high temperature waste heat for reuse or electricity generation, they're not efficient or cost-effective to take advantage of low grade waste heat below 100 degrees C with air jewel. We're unlocking a tremendous amount of value by utilizing that low grade waste heat to improve energy efficiency and produce pure distilled water. We talked before about the huge growth in data centers to support artificial intelligence and high performance computing. The largest data centers being developed today have several hundred megawatts of power demand. Using AirJoule, we can tap into the low-grade waste heat coming out of the data center and use it to produce 100% pure distilled water from air. Not only does AirJoule act as a pre-chiller and reduce cooling costs, but the distilled water produced can then be used within the data center for evaporative cooling, which is the most cost-effective method of cooling. By integrating AirJoule into a data center cooling loop and using that low-grade waste heat, AirJewel can reduce the data center's cooling costs, improve its power and water usage effectiveness, and mitigate its significant water demands through distributed water generation. I'm incredibly excited about this opportunity, and we've been getting tremendously positive feedback from data center operators who want to deploy proof of concept units to demonstrate the effectiveness of the AirJewel technology. Distributed water generation is the other near-term priority we're very focused on. One exciting development on this front is that we have our first air jewel operating in Dubai as part of a showcase deployment to highlight the technology and operating principles. This is being done in conjunction with 10X Investments, our local Emirati-owned partner in the UAE. We shipped the unit to Dubai in February, and it's been operating near continuously since then in an outdoor garden at a UAE government research institution, generating pure distilled water and providing us with tremendous amounts of data that help us continue to optimize AirJuul's performance. During the mornings, the temperature in Dubai has been in the low to mid-70s Fahrenheit, with relative humidity ranging from 50 to 75 percent. And in the afternoons, the temperature is a few degrees warmer with low relative humidity of 25 to 40%. We're very excited to have an operational unit there that is showcasing AirJuul's capability over a broad range of climate conditions for our customers in the UAE and the broader Middle East region. As we discussed last quarter, we see these regions as huge markets for us with their strong focus on water security. We've also been engaged with the Southwest Sustainability Innovation Engine, which is a collaboration between the National Science Foundation and Arizona State University. Through this project, we've identified opportunities where AirDuel can help mitigate water scarcity in the Southwest United States. As we look toward the rest of 2025, we expect to complete the engineering and design of our pre-production units, which will be capable of producing between 1,000 and 3,000 liters of water per day. These are slated for the second half of this year. We also expect to begin proof of concept pilot deployments with up to three data center operators to further validate the feasibility of our waste heat to water from air application. We expect these engagements to lead to meaningful customer commitments. Now, let me turn it over to Brian Barton, our chief commercialization officer, who also leads our joint venture with GE Vrnova. Brian will do a deeper dive on the waste heat to water application, our customer engagements, and how we intend to achieve our 2025 milestones.