DynaMotive Ships BioOil to U.S. for Specialty Products

DynaMotive Energy Systems signed its first commercial supply agreement for BioOil produced from the West Lorne BioOil production facility, after test shipments of the BioOil from the plant to the customer proved successful. The BioOil will be shipped to a US-based company to be used in the development of specialty products.

Specialty applications of BioOil provide an opportunity to derive a premium from the product; the biomass refinery concept has been researched with potential for catalytic cracking and fractionation of BioOil. Specialty products include syngas, extractives, resins, humates, polymers and ethanol. A key element in the development of such market opportunities was the establishment of a secure supply chain, now being demonstrated through the implementation of commercial operations at West Lorne. The five-year contract calls for monthly deliveries of BioOil from West Lorne starting at 20 tons per month and increasing to 250 tons per month at its peak (3000 tons per annum). The total value of BioOil to be shipped during the five-year term is estimated at USD$5,300,000 and at its peak delivery would represent 15 percent of the plant’s annual production of BioOil. The first shipment is expected to be completed in November. After successfully demonstrating the use of BioOil in heat and power application at West Lorne, DynaMotive is currently validating the use of BioOil as a displacement of hydrocarbons with large industrial users in Canada. The company expects to commence shipments of BioOil to Europe and to other markets for these purposes in 2006. DynaMotive is also focused on the development of BioOil emulsions with diesel and fuel oil, the testing of BioOil in slow speed diesel generators, and production of synthetic (mobile) fuels from BioOil. Test shipments of BioOil have been completed to Germany, France and the US.

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