Dynamotive Starts Commissioning Intermediate BioOil Plant in Guelph, Ontario, Aiming at 'Untapped' Industrial Fuels Market



    BRUSSELS, BELGIUM & LAS VEGAS, March 6 /CNW/ - Dynamotive Energy Systems
Corporation (OTCBB:DYMTF), which develops and markets biomass-based biofuel
technology and products derived from its proprietary fast pyrolysis process,
announced today that it has started the commissioning of its biofuel plant in
Guelph, Ontario, Canada, a process that is on target 11 months after start of
fabrication.

    The joint ventured Guelph plant, is designed to process 200 tonnes per
day of cellulosic biomass (recycled wood) and produce 175 tonnes (37,000
gallons) of biofuel per day (12.2 million gallons a year) with the equivalent
energy content of 550 barrels of conventional oil. Total development costs for
the plant are currently estimated at US$ 16.5 million. Full operations are
scheduled for the second quarter.

    The Guelph plant commissioning announcement was made simultaneously in
Brussels, in connection with the World Biofuels Markets, Congress and
Exhibition, and in Las Vegas, in connection with PowerGen Renewable Energy &
Fuels Conference.

    Unlike ethanol and biodiesel, the biofuels produced by Dynamotive will be
aimed at the industrial fuels market. This market accounts for approximately
25% of hydrocarbon usage and is a major contributor to greenhouse gas
emissions.

    "The Guelph plant will help draw international attention to renewable
BioOil and Intermediate BioOil as being viable and highly economical
replacements, on a potentially enormous scale, for mainstream industrial fuels
whether in the US, China, Europe or the smallest nations which have little or
no fossil fuel but abundant cellulosic biomass residues which are the raw
materials from which our fuels are made," said Andrew Kingston, President and
CEO of Dynamotive.

    "Biodiesel and ethanol target mobile fuels. Dynamotive's fuels target,
initially, the industrial market which is largely untapped. We believe we have
a great competitive edge in this market as well as being able to target
ethanol and syn-diesel production through further processing of our fuel."

    "We believe that our BioOil and Intermediate BioOils can be shown to be
cost competitive with hydrocarbon-based industrial fuels.

    "The attractive economics of BioOil partly derive from the simplicity of
the process, heat transformation of biomass into a liquid and char and the
fact that residual cellulosic biomass can be processed at smaller, distributed
plants that are significantly less costly to build and operate than other
biofuel production facilities that require large scale operations to be
economical," said Kingston.

    "A main contributor to the cost competitiveness is the fact that
Dynamotive's fuel is produced from residual or waste biomass and not from
agricultural products that otherwise have food value."

    The company has tested over 120 types of biomass to date. This provides
it with great flexibility in tackling the growing sustainable fuels market,
even providing opportunity to process residues from biodiesel and ethanol
production processes.

    Dynamotive has developed and tested BioOil and Intermediate BioOil in a
number of industrial applications with major companies and has shown
equivalent performance to natural gas, heating oil and diesel with same heat
input (equivalent thermal input). Further, BioOil, Intermediate BioOil and
char produced at Dynamotive's West Lorne plant have received Environment
Canada's EcoLogo Certification through the Environmental Choice Program.
Information on tests and the EcoLogo program are available at the Company's
website www.dynamotive.com.

    Kingston added that at a second stage of development Dynamotive will aim
to further process BioOil and Intermediate BioOil into synthetic diesel and
ethanol and, in doing so, further expand the market appeal for its technology
and fuels.

    "Production of syngas from BioOil and Intermediate BioOil is a
preliminary step towards the development of mobile fuels and has been
successfully demonstrated by the company."

    Dynamotive has developed the technology and fuels over the past 10 years
and demonstrated scaleability through six increasingly larger plants. It has
invested over US$ 50 million to reach this stage. Today, the Company has
developed two commercial plants in Ontario, Canada, Guelph and West Lorne, and
is planning further production facilities for Australia, China, Europe, South
America and the United States in addition to further plant modules of 200
tonnes per day capacity at the Guelph site.

    Guelph's output biofuel - Intermediate BioOil - will be suitable for most
of the industrial uses now addressed by petroleum-based #2 or #6 heating oil,
such as industrial power, heating, paper manufacturing and aluminum smelting.

    The company said it also expects to restart production near the end of
the second quarter, of its West Lorne, Ontario plant that is currently being
upgraded (after two years of operating as a commercial demonstration plant) to
130 tonnes per day of biomass processing capacity. The plant will produce
Light BioOil and Char. The output of the plant will be mainly for electricity
generation and for specialty products as BioOil has a number of high value
components that can be extracted.

    "Our Intermediate-Grade BioOil is an excellent substitute for fossil
fuels, especially for use in industrial boilers, kilns, smelters and other
applications. BioOil pumps well, ignites and burns readily when atomized, and
it can be used by industrial customers with little adjustments necessary to
combustion equipment."

    "According to the Energy Information Administration, a statistical agency
of the United States Department of Energy, nearly 25% (24.35%) of all U.S.
petroleum consumption is used by industrial boilers and similar equipment.

    "Focusing on that huge market makes BioOil the natural, renewable choice
for industry," Kingston continued, "and, we believe, it will become a
necessary supplemental biofuel to complement ethanol and biodiesel - fuels
which are more focused on transportation usage."

    Kingston will discuss the markets, technology and implications of
Intermediate BioOil in more detail on Friday, March 9th, when he speaks at the
World Biofuels Markets Congress in Brussels.

    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-less conditions to turn dry waste biomass and energy
crops into BioOil for power and heat generation. BioOil can be further
converted into vehicle fuels and chemicals. For further information, please
visit Dynamotive's website: www.dynamotive.com.

    www.dynamotive.com

    Forward Looking Statement

    Statements in this news release concerning the company's business outlook
or future economic performance; including the anticipation of future plant
start-ups, partnerships, consortiums, teaming agreements, government
assistance, other anticipated cash receipts, revenues, expenses, or other
financial items; and statements concerning assumptions made or expectations as
to any future events, conditions, performance or other matters, are
"forward-looking statements." Forward-looking statements are by their nature
subject to risks, uncertainties and other factors which could cause actual
results to differ materially from those stored in such statements. Such risks,
uncertainties and factors include, but are not limited to, changes in energy
prices, availability of capital, and the Company's ability to access capital
on acceptable terms or any terms at all, changes and delays in project
development plans and schedules, customer and partner acceptance of new
projects, changes in input pricing, competing alternative energy technologies,
government policies and general economic conditions. These risks are generally
outlined in the Company's disclosure filings with the Securities and Exchange
Commission.




For further information:

For further information: Dynamotive Energy Systems Corporation Nigel
Horsley, 604-267-6028 Executive Director, Communications and Investor
Relations or Nathan Neumer, 604-267-6042 Director, Communications or
Switchboard: 604-267-6000 Toll Free (North America): 877-863-2268 Fax:
604-267-6005 Email: info@dynamotive.com Website: www.dynamotive.com

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DYNAMOTIVE ENERGY SYSTEMS CORPORATION

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