9.26.23-Sustainability-DMAT

PAOLO SABATINI: Good morning, everybody. It's a pleasure of being here. And in the next five minutes, I will explain you how at DMAT we are changing the concrete ecosystem. My name is Paolo Sabatini. I founded DMAT with an MIT professor. Actually, with the idea of changing, advancing the most man-made use material in the world.

Why we define concrete as an ecosystem? It's because we all know the material. It's made of cement, sand, rocks, water, and different mixture. It's a very cheap material. It's simple, so everybody can use it. You build the biggest infrastructure, single family homes, small walls. Is made of ingredients that are already distributed in the world. So you can do it everywhere they are available.

And it sits in every corner of the compressive strength and the cost, always the most cost efficient. So these enabling factors actually translate in a huge global demand, 33 billion tons per year of production. So you take an elephant in weight, you have 5 billion of those elephants, that's how much concrete is poured every year.

So this, of course, comes with biggest challenges. 8% of global CO2 emissions directly related to concrete. An estimated cost of durability due to corrosion of $100 billion per year. A producer every 20 miles, $1 less the game of the industry. How do we change it?

We started from far. So we-- my co-founder conducted a research that was published on Science beginning of the year, where we unlocked the secret of ancient construction. So why, whenever you go to Rome, you see building standing for over 2,000 years instead of modern infrastructure lasting less? We understood the chemistry behind it. And we start playing with it.

So we did the full technological qualification in parallel of a research process. We understand the complexity of the market. We went into a lab where we build a functioning zone of these abandoned available mineral ingredient that we patent passing all the gates. So it's a world similar to pharma, lots of rules. If you want to change it, you need to fit in the existing one.

And we successfully did it. So our technology is a mixture, a material that you add in the concrete that gives a lot of performance. First, there's $100 billion of degradation cost per year mainly due to corrosion. So concrete is built and used to protect the Rebar. So you get to have like a lot of strength built high and last longer.

But whenever like a crack is formed naturally or induced, that leads actually to corrosion internally in the concrete. Corrosion, if you don't take care of the cracks, if you don't seal it with epoxy, then you can have structural damage. So on the top, you see what happened on a regular concrete. On the bottom, you see what happened to our concrete. Water infiltration instead of creating damages protect restore the concrete that, in the Roman case, lasted for 2,000 years.

First problem solved. Second problem, CO2 emission. Concrete is a material that is sold by performance. Engineering as a number PSI megapascals of compressive strength. And there are like producers that actually source cement and mix or water actually to achieve a specific performance.

We were able to get the same performance, so technically exactly same type of concrete. And we save 20% of CO2 emission. Second problem.

Now, how do you change an industry that is $1 less gain so everybody wants margin? We believe not with a premium green product. Our technology can combine 20% less CO2 emission, extended durability, and we have lower cost of production than concrete.

Simply, why? We remove a lot of cement. We added a mixer. We don't lose performance. When you remove cement, you save CO2 and money.

So whenever I speak with gentlemen in the industry, 9 out of 10 are looking for margin. While we empower this producer to make a better concrete that lasts longer and is cheaper and a result is more sustainable. Together with me, Admir Masic is going to speak this afternoon, one of the advisor. We are a team of three executive team backed by global venture. Happy, super happy to have MIT part of our shareholder.

And we are in a mission to change. There is a little bit of an issue here, but basically, we are working on new construction use cases. We have obtained the certification in Europe. Will be in the market in the states next year. We have 100 active interaction with clients in 10 countries.

What we are looking today is a validating the value of the market. So the technology is there. Getting clients to pay for it, and then scale on a belief that this technology is very simple. It's based on widely available ingredients. And is actually help us in making concrete sustainability accessible to everybody.

If you want to join us in the journey, I'll be on the back, super happy to talk to you. And again, thanks to the team of MIT. Fantastic event. You have a good day.

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