Dynamotive (OTCBB: DYMTF), disclosed that China's National Development and Reform Commission (‘NDRC’) recommended, after a year long review, the promotion of Dynamotive’s fast pyrolysis BioOil technology as a means to increasing energy security and independence.
The report concluded that: “There is strong potential for using (Dynamotive’s) BioOil to substitute (for) fuel oil. Analysis shows that if one-third of China’s agricultural and forestry waste could be used to produce BioOil, 15 million tons of fuel oil could be substituted, and half of imported fuel oil by China could be theoretically displaced.”
The report was based on extensive consideration of Dynamotive’s fast pyrolysis technology which turns commonly available agricultural and forest residues into an industrial fuel (BioOil) and is a pivotal part of Dynamotive’s entry strategy into this market.
NDRC’s Energy Research Institute (‘ERI’) Deputy Director, Professor Dai Yan De, said “NDRC does not usually contact enterprises directly. However, with regards to the development of new energy in the post petroleum era, apart from hydroelectric and wind power, biomass is one of the major alternative resources. In spite of keen competition worldwide, Dynamotive is the only one that has achieved commercial scale in the pyrolysis industry and prompted this unusual step to be taken.”
Dynamotive further disclosed that it is now part of a consortium that includes Mitsubishi Canada Ltd., Mitsubishi Corporation China Commerce Co., JNE Consulting and Hangzhou Steam Turbine Co. Ltd. The consortium is currently negotiating a teaming agreement. The consortium will enable a faster rollout of our BioOil technology into China. This year Mitsubishi and Dynamotive have spent significant time and resources to establish potential fabrication partnerships in Japan for BioOil technology and in China for steam generation compatible equipment.
In their earlier third quarter report, for the period ending September 30, 2006, Dynamotive announced it reached an agreement with Erie Flooring and Wood Products (EF) for a $4.5 million expansion of its BioOil production at the West Lorne facility to 130 tonnes of biomass input per day, a 30% expansion.
The added production capacity will allow the Company to maximize electricity generation at site and maximize revenue generation through the new green energy pricing structure proposed in the Ontario Standard Offer (a 50% increase on current electricity prices) while continuing to support and expand its favourable BioOil sales contracts and market development activities.
Further, through the implementation of technological advances developed as a result of two years of operation at the plant, the company expects to achieve a 35% reduction in operating costs. The investment in the expansion has a projected payback of three years.