DynaMotive to Make BioOil in Ukraine and Baltic States

Rika Ltd. has received a master license from DynaMotive Energy Systems to market its technology in Latvia and Ukraine, where Rika Ltd. has extensive operations. Rika will develop and operate two plants producing 200 tons per day of BioOil, a proprietary product, which, according to DynaMotive, “can be stored, pumped and transported like petroleum based products and can be combusted directly in boilers, gas turbines and slow and medium speed diesels for heat and power applications.”

BioOil is produced using DynaMotive’s patented pyrolysis process that converts organic residues such as forest and agricultural wastes (bark, sawdust, sugar cane bagasse) into a liquid fuel. The process, which takes less than two seconds, produces BioOil, char, and non-condensable gases, all of which offer commercial application, thereby creating zero waste. BioOil is renewable, clean burning, low in emissions and is greenhouse gas neutral. It does not produce SOx (sulfur dioxide) emissions during combustion and produces approximately half the NOx (nitrogen oxide) emissions in comparison with fossil fuels. Rika Ltd. and DynaMotive have further agreed to scope the feasibility of bioenergy crops in Ukraine, where Rika has leased 25,000 hectares of farmland. The companies are considering the allocation of 10,000 hectares for growth of biomass for BioOil production. Once in production, it is estimated that each hectare will yield up to 30 tons of dry biomass per annum. This will potentially provide for a total production capacity of 300,000 tons annually of biomass, equivalent to 800 tons per day of processing capacity. “It is a major development, both in terms of renewable energy and energy independence for the countries covered,” said Grigorijs Krupnikovs, Chairman of Rika Ltd. “We expect that these licensing arrangements will stimulate economic development and provide jobs and new kinds of income for rural areas.” “Rika has a strong presence in the Baltic and in the Ukraine,” said Andrew Kingston, DynaMotive President and CEO. “We have already identified a number of project initiatives and are confident that we will implement projects aggressively.” Rika and DynaMotive have researched the market opportunity in the territories covered under the master license agreement. The two projects identified in Latvia and the Ukraine are each expected to have an initial biomass input capacity of 200 tons per day with further capacity added at a second stage. The projects will use DynaMotive’s modular plant design, mirroring developments in Canada. Under the agreement, DynaMotive will receive a fee for the master license plus license fees for each plant developed in the territory as well as royalties from the output of those plants.

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