Dynamotive Energy Systems Corporation (OTCBB:DYMTF), which
develops and markets biomass-based biofuel technology and products
derived from its proprietary fast pyrolysis process, announced today
that it has started the commissioning of its biofuel plant in Guelph,
Ontario, Canada, a process that is on target 11 months after start of
fabrication.
The joint ventured Guelph plant, is designed to process 200 tonnes
per day of cellulosic biomass (recycled wood) and produce 175 tonnes
(37,000 gallons) of biofuel per day (12.2 million gallons a year) with
the equivalent energy content of 550 barrels of conventional oil.
Total development costs for the plant are currently estimated at US$
16.5 million. Full operations are scheduled for the second quarter.
The Guelph plant commissioning announcement was made
simultaneously in Brussels, in connection with the World Biofuels
Markets, Congress and Exhibition, and in Las Vegas, in connection with
PowerGen Renewable Energy & Fuels Conference.
Unlike ethanol and biodiesel, the biofuels produced by Dynamotive
will be aimed at the industrial fuels market. This market accounts for
approximately 25% of hydrocarbon usage and is a major contributor to
greenhouse gas emissions.
"The Guelph plant will help draw international attention to
renewable BioOil and Intermediate BioOil as being viable and highly
economical replacements, on a potentially enormous scale, for
mainstream industrial fuels whether in the US, China, Europe or the
smallest nations which have little or no fossil fuel but abundant
cellulosic biomass residues which are the raw materials from which our
fuels are made," said Andrew Kingston, President and CEO of
Dynamotive.
"Biodiesel and ethanol target mobile fuels. Dynamotive's fuels
target, initially, the industrial market which is largely untapped. We
believe we have a great competitive edge in this market as well as
being able to target ethanol and syn-diesel production through further
processing of our fuel."
"We believe that our BioOil and Intermediate BioOils can be shown
to be cost competitive with hydrocarbon-based industrial fuels.
"The attractive economics of BioOil partly derive from the
simplicity of the process, heat transformation of biomass into a
liquid and char and the fact that residual cellulosic biomass can be
processed at smaller, distributed plants that are significantly less
costly to build and operate than other biofuel production facilities
that require large scale operations to be economical," said Kingston.
"A main contributor to the cost competitiveness is the fact that
Dynamotive's fuel is produced from residual or waste biomass and not
from agricultural products that otherwise have food value."
The company has tested over 120 types of biomass to date. This
provides it with great flexibility in tackling the growing sustainable
fuels market, even providing opportunity to process residues from
biodiesel and ethanol production processes.
Dynamotive has developed and tested BioOil and Intermediate BioOil
in a number of industrial applications with major companies and has
shown equivalent performance to natural gas, heating oil and diesel
with same heat input (equivalent thermal input). Further, BioOil,
Intermediate BioOil and char produced at Dynamotive's West Lorne plant
have received Environment Canada's EcoLogo Certification through the
Environmental Choice Program. Information on tests and the EcoLogo
program are available at the Company's website www.dynamotive.com.
Kingston added that at a second stage of development Dynamotive
will aim to further process BioOil and Intermediate BioOil into
synthetic diesel and ethanol and, in doing so, further expand the
market appeal for its technology and fuels.
"Production of syngas from BioOil and Intermediate BioOil is a
preliminary step towards the development of mobile fuels and has been
successfully demonstrated by the company."
Dynamotive has developed the technology and fuels over the past 10
years and demonstrated scaleability through six increasingly larger
plants. It has invested over US$ 50 million to reach this stage.
Today, the Company has developed two commercial plants in Ontario,
Canada, Guelph and West Lorne, and is planning further production
facilities for Australia, China, Europe, South America and the United
States in addition to further plant modules of 200 tonnes per day
capacity at the Guelph site.
Guelph's output biofuel - Intermediate BioOil - will be suitable
for most of the industrial uses now addressed by petroleum-based #2 or
#6 heating oil, such as industrial power, heating, paper manufacturing
and aluminum smelting.
The company said it also expects to restart production near the
end of the second quarter, of its West Lorne, Ontario plant that is
currently being upgraded (after two years of operating as a commercial
demonstration plant) to 130 tonnes per day of biomass processing
capacity. The plant will produce Light BioOil and Char. The output of
the plant will be mainly for electricity generation and for specialty
products as BioOil has a number of high value components that can be
extracted.
"Our Intermediate-Grade BioOil is an excellent substitute for
fossil fuels, especially for use in industrial boilers, kilns,
smelters and other applications. BioOil pumps well, ignites and burns
readily when atomized, and it can be used by industrial customers with
little adjustments necessary to combustion equipment."
"According to the Energy Information Administration, a statistical
agency of the United States Department of Energy, nearly 25% (24.35%)
of all U.S. petroleum consumption is used by industrial boilers and
similar equipment.
"Focusing on that huge market makes BioOil the natural, renewable
choice for industry," Kingston continued, "and, we believe, it will
become a necessary supplemental biofuel to complement ethanol and
biodiesel - fuels which are more focused on transportation usage."
Kingston will discuss the markets, technology and implications of
Intermediate BioOil in more detail on Friday, March 9th, when he
speaks at the World Biofuels Markets Congress in Brussels.
About Dynamotive
Dynamotive Energy Systems Corporation is an energy solutions
provider headquartered in Vancouver, Canada, with offices in the USA,
UK and Argentina. Its carbon/greenhouse-gas-neutral fast-pyrolysis
technology uses medium temperatures and oxygen-less conditions to turn
dry waste biomass and energy crops into BioOil for power and heat
generation. BioOil can be further converted into vehicle fuels and
chemicals. For further information, please visit Dynamotive's website:
www.dynamotive.com.
www.dynamotive.com
Forward Looking Statement
Statements in this news release concerning the company's business
outlook or future economic performance; including the anticipation of
future plant start-ups, partnerships, consortiums, teaming agreements,
government assistance, other anticipated cash receipts, revenues,
expenses, or other financial items; and statements concerning
assumptions made or expectations as to any future events, conditions,
performance or other matters, are "forward-looking statements."
Forward-looking statements are by their nature subject to risks,
uncertainties and other factors which could cause actual results to
differ materially from those stored in such statements. Such risks,
uncertainties and factors include, but are not limited to, changes in
energy prices, availability of capital, and the Company's ability to
access capital on acceptable terms or any terms at all, changes and
delays in project development plans and schedules, customer and
partner acceptance of new projects, changes in input pricing,
competing alternative energy technologies, government policies and
general economic conditions. These risks are generally outlined in the
Company's disclosure filings with the Securities and Exchange
Commission.
