DynaMotive Energy Systems Corporation (OTCBB: DYMTF ) announced today that it has signed its first commercial supply agreement for BioOil produced from the West Lorne BioOil production facility. The BioOil will be shipped to a U.S. based company and will be utilized for the development of specialty products.
The contract will last for 5 years and calls for monthly deliveries of BioOil from West Lorne starting at 20 tonnes per month and increasing to 250 tonnes per month at its peak (3000 tonnes per annum). The total value of BioOil to be shipped during the 5 year term is estimated at U.S. $5,300,000 and at its peak delivery would represent 15% of the plant’s annual production of BioOil.
DynaMotive is an energy systems company focused on the development of innovative energy solutions based on its patented fast pyrolysis system. DynaMotive’s technology economically converts biomass into a renewable, environmentally friendly fuel. DynaMotive has successfully
demonstrated conversion of these residues into fuel known as BioOil, as well as char.
Dynamotive has a 100 ton per day system in operation at West Lorne, Ontario, Canada using wood flooring residue as feedstock and capable of supplying 2.5 MWe to the grid. More on pyrolysis, Dynamotive and their process can be found in the earlier post About Biomass Liquefaction via Pyrolysis. Bio-oil can be produced much more economically than Fisher-Tropsch diesel, has a heating value 40% of diesel, but can be used directly in medium and slow speed diesel engines or gas turbines. Bio-oil has a number of supposed disadvantages as compared to diesel, many involving modifications to the prime mover, but all things considered it is usually competitive to diesel. Its use in gas turbines is more straight forward than in diesel engines and thus turbines are likely to be the first adapters of the fuel. Although almost an unknown type of biofuel, Bio-oil represents an important alternative fuel source as our supplies of petroleum oil depletes. According to Dynamotive there is a potential to produce 1,700 million bbl/yr of bio-oil from forest products waste, bagassse and other agricultural wastes.
Resource: Dynamotive press release, November 21, 2005