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Dynamotive’s “BioOil” Could Become a Solution to Triple Digits Oil and Increasing Environmental Conc

After surging 57% in 2007 and nearing the $100 mark in the final months of 2007, crude oil prices breached the century`s peak of $100 a barrel on the NYMEX. A variety of factors, including the US crude inventory report, new troubles in oil-rich Nigeria, a further slide in the dollar and weak manufacturing data, caused the price surge. However, the main long-term driver is growing demand from emerging economies and weak supply. Experts predicted the oil would decisively vault $100 very soon.

The increasing use of oil leads to an adverse impact on the environment. Measurements from Antarctic ice cores show that just before industrial emissions started, atmospheric CO2 levels were about 280 parts per million by volume (ppm) or almost at the same level during the preceding 10,000 years. Since the beginning of the Industrial Revolution or in about 230 years, the concentrations of the greenhouse gases have increased to 380 ppm, which led to the global warming process and born serious environmental concerns.

During the second half of December 2007, the Senate passed a revised energy bill designed to cut the US dependence on imported oil by imposing the biggest increase in fuel-efficiency standards in 32 years. The Energy bill raised sixfold the amount of renewable fuels that must be used for blending of products like gasoline, to 36 billion gallons a year by 2022, which gave a strong boost to biofuel stocks. Biofuels provide many benefits including reduction of greenhouse gas emissions, greater energy security and a sustainable fuel supply for the future. More than 100 major fleets have implemented biofuel programs across the country, including Federal fleets such as the US Postal Service, the US Air Force, the US Army, Florida Power, Georgia Power, Alabama Power and others. Global production of Biofuel exceeded 48 billion liters in 2005 and is expected to grow at a CAGR of 13% by the end of the year 2010.

Currently, ethanol and biodiesel are produced in the United States using mainly vegetable oils as feedstock.    Dynamotive Energy Systems Corp. (DYMTF) is in position to change this situation. The Company develops and markets biofuel technology and products based on its patented fast pyrolysis technology. Using this advanced method, Dynamotive produces and markets carbon-neutral liquid fuels produced from biomass residues and energy crops.

The Company`s flagship product is the BioOil, an industrial fuel produced from a variety of cellulose waste material and is not dependent on food-crop production. When combusted, it produces substantially less smog-precursor nitrogen oxides (NOx) emissions than conventional oil as well as little or no sulfur oxide gases (SOx), which are a prime cause of acid rain. Milton Copulos, an energy economist and Dynamotive's Vice President, said that while the Company's fuel provides about 55% of the energy of a similar amount of conventional oil, BioOil is priced competitively with two common types of fuel oil on a per-energy unit basis. The opportunities for applications of BioOil in primary industry are kilns and boilers in pulp and paper, process heat in boilers in sawmills, metallurgy and oil and gas industries, as well as in secondary industries such as greenhouses, district heating and stationary engines. The Company already uses the fuel to generate electricity at one of its two BioOil plants in Ontario and is negotiating with other  industrial customers.

Recently, DYMTF announced that it plans to build a $24 million biofuel plant in Willow Springs, Missouri, that would convert wood scraps into fuel to operate factories and heat office buildings. This is planned to be the first commercial plant in the US to produce liquid biofuel from wood residues. The facility will be located on a site in Willow Springs, chosen for its ready access to rail transport, proximity to biomass and the potential to host up to four additional facilities. The plant will be capable of converting up to 73,000 tons of wood byproducts and other residue from nearby sawmills into 12 million gallons of BioOil per year. DYMTF expects to open the plant by mid-2009. The Company also plans to build six plants in Argentina.

About Dynamotive

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse-gas-neutral fast pyrolysis technology uses medium temperatures and oxygen-free conditions to turn dry, waste cellulosic biomass into BioOil® for power and heat generation. BioOil® can be further converted into vehicle fuels and chemicals. For further information, please visit the company's website at www.dynamotive.com.
Comments (2)
d
written by G, January 18, 2008
Dymtf never had a working plant,
maybe that is the first thing to achieve before talking about more
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written by Cliff, January 19, 2008
"Dymtf never had a working plant" ?
what about "The Company already uses the fuel to generate electricity at one of its two BioOil plants in Ontario" ?
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