Bioenergy

Dynamotive Acquires BioOil Turbine for $3.25M

Dynamotive Energy Systems Corporation has agreed to the financial terms on the last of its equipment obligations in connection with the biomass-fueled power generation turbine acquired from Magellan Aerospace, which is currently in use at Dynamotive’s West Lorne BioOil facility.

The turbine, which was manufactured by Magellan Aerospace Limited (MAL), can produce 2.5 megawatts (MW) of Dynamotive BioOil-fueled electric power using the flooring company’s wood and wood chip residues. Purchase price for the turbine was US$ 3.25 million (C$3.6 million), including approximately $900,000 (C$1 million) in restricted Dynamotive common stock at a 10% discount. Dynamotive said the transaction removes all debt from the West Lorne cogeneration plant. Warranty and servicing agreements included in the contract will provide support for the operation of the plant’s turbine for the next seven years. “We believe Magellan’s cooperative participation with us on this first successful commercial BioOil plant reflects their appreciation of the opportunity this technology represents for power co-generation,” said Andrew Kingston, president and chief executive officer of Dynamotive. “We are now enhancing the plant’s operation, as well as applying the expertise developed there as we expand the marketing and deployment of our pyrolysis technology,” he added.