Canada DynaMotive Energy Systems Corporation, Magellan Aerospace division-Orenda Industrial (Orenda) and Erie Flooring and Wood Products intend to develop a 2.5 MW electric combined heat and power project in West Lorne, Ontario, Canada.Vancouver, British Columbia – June 5, 2003 [SolarAccess.com] The integrated plant is to utilize wood residue from Erie Flooring’s operations and will be comprised of wood conditioning equipment, pyrolysis plant and power island. Pyrolysis and generation equipment are to be provided by DynaMotive and Orenda respectively. Erie Flooring is to provide wood residue for the project and will receive electricity and process heat for its operations. The project is expected to export green power to Ontario’s grid system. “We are proud to be developing our first integrated bio fuel power facility in Ontario, Canada,” said Frank Button, Vice President and General Manager of Orenda Turbines. “We strongly believe in the strength of DynaMotive’s technology and the market opportunity that an integrated bio fuel energy system affords both companies. Our generation technology is robust and has been successfully adapted to handle BioOil as a fuel source. We have conducted exhaustive tests and are confident that the demonstration will be successful.” DynaMotive and Orenda will seek EcoLogo certification for the project. Project coordination, civil works integration and grid connections are to be provided by UMA engineering. DynaMotive and its development partners are in advanced stage negotiations with finance and government institutions and other potential participants in the project. The project, subject to completion of agreements, is expected to be formally launched within this quarter and be completed within 12 months of launch date. “Having evaluated various alternatives for value added utilization of our residue, we have selected DynaMotive and Orenda’s approach as we believe that through the application of their combined technologies we will be able to achieve improved economic returns while further enhancing our environmental performance,” said Alan Vandenbrink, General Manager of Erie Flooring and Wood Products. DynaMotive recently announced a tender for the fabrication of a first modular pyrolysis plant in British Columbia, Canada capable of processing 100 tons per day of dry biomass (200 tons per day wet) with an option for two further plants. The Company is evaluating further projects in British Columbia and in the United States of America. Modular design and fabrication techniques allow for parallel fabrication of pyrolysis systems of various processing capabilities. This latest project will utilize the same pyrolysis platform as the ones slated for British Columbia and the US. Modules are expected in the 100 and 200 tons per day range initially.