Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 88

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 88
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 make HVAC systems more efficient by reducing energy use and lowering costs for air conditioning
by up to 50%, depending on the environmental conditions and method of integration into the HVAC system.

There are various types of HVAC systems, but the basic mechanisms are
similar across all types. A mechanical system is used to draw in air, which is dehumidified and adjusted to the desired temperature. The
dehumidification step occurs when the temperature is lowered using refrigerants and water vapor in the air condenses into water. During
this process, condensation heat is generated. Thus, the cooling mechanism must be powerful enough so that the cooling effect exceeds the
rise in temperature resulting from condensation heat in order to lower the net temperature of the environment in which this system is
being used. Therefore, a significant amount of energy is required to offset condensation heat and lower the indoor temperature, particularly
in increasingly hot and humid environments. A recent study found that the removal of humidity in air conditioning requires more energy
than the temperature reduction itself and is responsible for more than 1% of all global greenhouse gas emissions.

When integrated with an air conditioning system, AirJoule produces
dehumidified air, lowering the overall energy requirements for the system and reduces operating expenses for customers. Additionally,
AirJoule integration into an air conditioning system is expected to reduce the need for environmentally harmful refrigerants.

Growth Strategy and Outlook

We anticipate significant growth opportunities by offering AirJoule
in global markets where demand for water, dehumidified air and cooling are highest. With our proprietary technology, we believe that we
are uniquely positioned to provide curated solutions that satisfy our customers’ needs and expectations in fast-growing and water
and energy-intensive industries, such as data centers and advanced manufacturing, along with military and HVAC applications. We estimate
the combined total addressable market to be approximately $450 billion.

In the data center arena, we aim to address escalating energy and water
efficiency challenges associated with increased computing density by using low-grade waste heat to produce pure distilled water and enabling
data center operators to reduce their cooling costs and improve water sustainability. Similarly, in advanced manufacturing environments,
where product quality and process precision hinge on consistent humidity and ultra-pure water, AirJoule can help customers with cost-effective
dehumidification. The military sector presents a distinct opportunity, as AirJoule is able to operate in a variety of climate conditions
to support troops in remote and water-scarce environments