Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 97

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 97
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 operating expenses and improved water sustainability
for manufacturers.

Military

The U.S. military has significant water needs to support personnel,
equipment, and operations across diverse environments, ranging from domestic bases to remote and austere locations. Water is essential
for drinking, sanitation, cooking, medical care, and equipment maintenance, with daily consumption requirements increasing in arid and
combat zones. Currently, these needs are fulfilled through a combination of local water sourcing, logistical supply chains, and advanced
water purification technologies which involve significant costs of up to $5 per liter of water.

AirJoule’s market-leading technology for harvesting water from
air, even in the arid environments, make it ideally suited to improve water security and reduce costs for the U.S. military. AirJoule
has already been demonstrated for senior military leaders through the AIR2WATER program led by the US Department of Defense Advanced Research
Projects Agency, as well as Thunderstorm 24-4, a showcase focused on innovative technology for expeditionary military operations. The
Company is evaluating potential field test deployments with various branches of the U.S. military.

7

HVAC

According to the International Energy Agency, air
conditioning currently accounts for approximately ~10% of global electricity demand, and global demand for air conditioning is expected
to triple by 2050. This growth is likely to be accompanied by an increase in global emissions from the additional power generation required,
exacerbating climate change. Integrating AirJoule into air conditioning systems can lower power consumption by up to 50% and mitigate
some of the negative impacts from the growth in demand for air conditioning.

There are various types of air conditioning 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