BioOil Initiative for British Columbia

DynaMotive Energy Systems Corporation and Cottles Island Lumber Company have entered into a contract for the use of DynaMotive’s Fast Pyrolysis for transformation of sawmill wastes into BioOil and char.

Vancouver, British Columbia – January 29, 2004 [] “This MOU (Memorandum of Understanding) with Cottles Island Lumber marks a new developmental phase for DynaMotive,” said Andrew Kingston, President and CEO of DynaMotive. “We are now aggressively positioning ourselves as a benchmark technology across Canada, and we are also gearing up to export this development model internationally.” The project aims to transform bark and wood wastes from both current sawmilling operations and from land filled stockpiles into BioOil and char for onsite consumption as energy sources, and for local industrial users as a replacement for fuel oil. Feasibility studies are already underway. This is DynaMotive’s 4th project initiative under development in Canada. “Cottles Island Lumber Company Ltd. is the most technologically advanced sawmill in Newfoundland, and we have a record of integrating ground-breaking technology into our operations,” said Rex Philpott, President of Cottles Island Lumber Company. “In the long run, finding new ways to secure additional value from wood is critical for the prosperity of this industry.” DynaMotive Energy Systems Corporation reports that BioOil has been demonstrated to effectively replace fuel oil in industrial boilers. “We are currently evaluating numerous projects with the Canadian forest products industry,” said Dr. Luc C. Duchesne, Chief Forester for DynaMotive. “In Newfoundland, Cottles Island Lumber is a showcase operation for the potential for our technology to provide a competitive edge to the forest industry by providing means to create energy as a value-added product from forest biomass that was land filled until recently.” According to the company, although BioOil has approximately half of the heating value of light or heavy fuel oil on an equal volume basis, it has superior fuel properties to heavy fuel oil in terms of viscosity, ash, sulphur, nitrogen content, nitrous oxide (NOx) emissions and cold weather properties (pour point). It is also superior to light fuel oil with respect to sulphur oxide and nitrous oxide (SOx/NOx) emissions in gas turbines, cold weather properties (pour point) and sulphur content, the company said. “The Newfoundland and Labrador forest industry has been affected greatly by the lumber tariffs and the high Canadian dollar,” said Bill Alexander, Manager of the Newfoundland and Labrador Forest Training association with whom DynaMotive has a further MOU. “We welcome the economic opportunities to the forest industry that DynaMotive is introducing with its new technology.” Project coordination and civil works integration are to be provided by UMA engineering. The project, subject to completion of final agreements, will be formally launched in the second quarter of 2004 with project completion within 12 months of launch. “Sawmill residues have been accumulating for years in the Province to the point that they have become an environmental concern,” said Gary Forward, Development Specialist, Forest Engineering & Industry Services of the Newfoundland and Labrador Government. “DynaMotive’s technology could help resolve these environmental issues while helping make the industry more competitive.”
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