Dynamotive Headed for China, Expands West Lorne Facility

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.

Comments

[amazingdrx]

These waste products need to be returned to the soil, not burned. The only economical,eco-friendly source for bio-oil is algae grown in solar collectors.

Agricultural and forestry waste is better left in the soil or digested to make biogas and organic fertilizer. Then the organic fertilizer increases plant growth and cO2 sequestration.

Only a small portion of that organic waste ought to go to biogas digestion though, only enough to balance the carbon/nitrogen ratio in the digestors that will recycle manure, garbage, and human waste into clean energy, clean water, and organic fertilizer.

With the huge added benefit of keeping nitrogen rich runnoff out of wetlands, lakes, rivers, and oceans, where they facilitate the release of huge quantities of methane, a 20 times worse GHG than cO2.

[Anthony]

Lets face it, Dynamotive is the real deal and it's poised to become a leader in institutionalizing BioOil as a common commoditiy world-wide. Dynamotive's BioOil is the most practical green fuel around...