News | May 25, 2007

Dynamotive Announces BioOil Production At Guelph Plant

Ncouver, BC - Dynamotive Energy Systems Corporation announced it completed the initial production run of BioOil in its new generation plant in Guelph, Ontario, Canada. Intermediate grade BioOil, which has higher calorific value than regular BioOil, was produced. The run is the first of a number of test runs planned that are designed to take the plant to full production in accordance with the commissioning plan underway.

Approximately 40 cubic meters of wood were processed. The first run was at the equivalent daily rate of 50 tonnes of feedstock processed and the second at a rate of 100 tonnes. Dynamotive and Tecna's engineers are currently reviewing operational data and testing is being conducted on the fuel produced. Data will be posted on Dynamotive's website www.dynamotive.com as it becomes available.

Dynamotive plans to market this renewable fuel with the name 'BioOil Plus' as a green and cost competitive alternative to heating oil, fuel oil, natural gas and propane in industry. Industrial fuels represent approximately 20% of hydrocarbon use worldwide.

Further, Dynamotive demonstrated in earlier tests that BioOil Plus can be used as an input to Biomass to Liquid Processes (BTL) as a cost effective means of delivering biomass energy to these plants and in doing so break down cost and logistic barriers to the production of mobile fuels from biomass. Specification on BioOil Plus and industrial application information for the fuel are available at the company's website.

"Cellulose-based fuels present the next frontier in sustainability and Dynamotive's pioneering position in advanced generation biofuels is further enhanced through the achievement of this new milestone. Dynamotive believes that BioOil presents a third alternative liquid fuel to coexist with ethanol and biodiesel," said Dynamotive's President and CEO Andrew Kingston. "By being able to exploit any cellulose raw materials, e.g. forest industry residues, bark, biomass from fields I believe we can become a great contributor to the energy mix and accelerate the adoption of cellulose based fuels."

Recently, at a renewable energy conference in Buenos Aires, Argentina, Kingston announced that the company reached an agreement in principle with the Provincial Government of Corrientes, in northeast Argentina, for Dynamotive, its affiliate, local and international partners to develop, subject to financing and other conditions, six similar plants in that country at a total estimated cost of US $120M.

Dynamotive has its other plant in West Lorne, Ontario, located midway between Toronto and Detroit, Michigan now undergoing an upgrading of its systems; information on this plant operations and the status of the current upgrade can also be followed in the company's website.

About BioOil
BioOil is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog-precursor nitrogen oxides (‘NOx') emissions than conventional oil as well as little or no sulfur oxide gases (‘SOx'), which are a prime cause of acid rain. BioOil and BioOil Plus are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada's Environmental Choice Program. BioOil can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production.

SOURCE: Dynamotive Energy Systems Corporation

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