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09/11/03 DJIA 9420.46 -86.74 NASDAQ 1823.81 -49.62 S&P 500 1010.92 -12.25
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September 11, 2003 08:31
Design and Economic Evaluation for BioOil System Completed; Conversion Cost Predicted at Under 60% of Natural Gas Average Price for the Past Twelve Months
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 11, 2003--DynaMotive Energy Systems Corporation (OTCBB YMTF), Bruks Klockner and UMA Engineering announced today that a preliminary evaluation of a waste-to-energy system capable of converting wood residue into BioOil has been completed.
The evaluation, carried out for one of British Columbia's existing forest operations, estimates the cost of conversion to be less than CDN$ 4.00 per gigajoule of energy, well below the current and historical prices of natural gas.
Natural gas prices have escalated over the past two years with peak well head prices exceeding CDN$10 per gigajoule. Price escalation and volatility is a significant concern within the sector. DynaMotive's system, currently under development, processes residue produced by wood sector operations, potentially providing a secure supply of energy at a reduced cost, increase natural resource utilization and favorably impact the environment. BioOil, by virtue of being derived from bio-mass, is considered to be a green house gas neutral fuel, has no sulfur and low nitrogen oxide emissions.
BioOil can be used directly at the point of production without requirement for refining. Direct BioOil use has been demonstrated in boilers (lumber kilns, lime kilns) and in Magellan Aerospace Corp., Orenda Industrial power generation turbines.
Based on current evaluation, the opportunity for shipment of BioOil at competitive prices also arises. Cost of transportation is a significant factor in delivering energy commodities. BioOil has approximately seven times the energy density of dry forest and sawmill residue, giving BioOil a significant logistical and transportation cost advantage over solid bio-mass.
DynaMotive intends to deliver the first system to Erie Flooring and Wood Products. The fuel would be utilized to drive an Orenda power generation system capable of generating 2.5 megawatts of electricity and 12,000 lbs/hr pounds of steam for Erie Flooring's operations. A second system will be constructed for applications within the forest industry. Ramsay Machine Works has been selected as the plant fabricators for the two plants.
Commenting on the development Andrew Kingston, President & CEO of DynaMotive said, "Our objective of being able to compete favorably with fossil fuels on level terms in industrial applications is quickly becoming a reality. Being able to do so emphatically at a base level opens multiple opportunities for DynaMotive. The development of this system has been made possible through the support of our partners."
"The installed system has an estimated cost of CDN$ 7,300,000, capable of processing 200 tonnes per day (wet) bio- mass and provide sufficient BioOil to displace 400,000 gigajoules of natural gas per annum. Operational costs and royalties on energy production for such a plant were estimated at CDN$900,000 per annum, with finance costs and capital amortization estimated at CDN$ 700,000 per annum. The evaluation considers zero transfer cost for wood residue."
Bruks-Klockner is a world leading company for wood processing equipment, with a focus on waste wood and bark preparation for energy plants including chippers, shredders, hammer mills and a newly-patented environmentally friendly low temperature dryer. With more than 100 years as a machine and plant supplier, Bruks-Klockner Wood Technology sets the standard for the wood industry worldwide. Landmark technological developments, as exemplified by the drum chipper, have become staples in all areas of wood processing.
UMA provides consulting, engineering, construction and management services to the community infrastructure, earth and water, transportation, and industrial market sectors. It is an employee-owned company with offices throughout Canada and in the United States and Mexico and has been in business for more than 90 years.
DynaMotive develops innovative energy solutions through the application of its patented fast pyrolysis technology, a process that converts bio-mass residue into efficient fuel types (BioOil and char). By increasing the energy density and handling characteristics, DynaMotive's fuels are able to compete favorably with hydrocarbon fuels. Development partners include Bruks Klockner, UMA Engineering, Tecna SA, Ontario Power Generation, Magellan Aerospace division-Orenda Industrial, Cosan Bon Jesus and Rotch Group.
Forward Looking Statement
Statements in this news release concerning the company's business outlook or future economic performance; anticipated profitability, 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" as that term is defined under the Federal Securities Laws. Forward-looking statements are 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, future capital needs, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission
Bengt Nilsson, 678-994-0024
Peter Smith, 604-438-5311
Corporate Communications, 604-267-6000
Toll Free (in North America): 1-877-863-2268
Antony Robson, (44) 0207 550 3872
Fax: (44) 0207 409 2304
DynaMotive Corporation US enquiries
James Acheson, 323-460-4900
DYNAMOTIVE ENERGY SYS CRP - DYMTF
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09/11/03 09:07 AM EDT
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