Dynamotive Energy Systems Corporation (OTCBB: DYMTF), a leader in biomass-to-biofuel technology, today reported its second quarter 2008 results.

For the three months ended June 30, 2008, the Company reported a net loss of $2.9 million or $0.01 per share, compared with a net loss of $3.5 million or $0.02 a share for the same period a year earlier. When stock-based compensation is excluded, Dynamotive’s Q2 2008 net loss was $2.3 million, compared with $2.8 million during 2007. (All figures are in US dollars.)

The lower loss for the quarter is due mainly to lower business development, research and development expense and an overall reduction in general and administrative expenses, partially offset by increased activity levels in the Company’s US and Argentine offices.

During the quarter, Dynamotive continued commissioning of a modular 200-tonnes-per-day intermediate grade BioOil® plant in Guelph Ontario and repaired fire damage at the upgraded 130 tpd plant in West Lorne, Ontario.

President and CEO, Andrew Kingston, said: “During the second quarter of 2008 and since quarter end, Dynamotive has completed the repair and start-up of the West Lorne plant and has made related modifications in Guelph.  Although the four month delay due to these events occasioned by the thermal incident, has slowed our project development activity, the Company is receiving renewed expressions of interest from these prospects and has an attractive pipeline of advanced opportunities.  Sales of BioOil and char to existing customers and prospects for additional product contracts in the next few months are promising.  We look forward to increased sales activity through the remainder of this year and to making advances in the US, South American and other project developments.”
Quarter Highlights

• Completed repair work and re-commissioning at West Lorne along with implementation of preventative measures at Guelph.
• Initial post-repair production from the upgraded West Lorne plant in July 2008, with $100,000 of invoiced sales of product and services since re-start-up.
• Completed additional contracts in US and Argentina to advance project developments.
• Completed additional third party tests on BioOil, BioOil Plus and BioChar.
• Advanced research and development work on a two stage process for the upgrading of BioOil, which the Company believes can be a cost effective path to using BioOil in the production of mobile fuels in conventional refineries.
• The Company is currently working with its investment bankers and has agreed terms in principle for convertible debt financing.  Subject to final agreements and market conditions, funding is targeted for September.

Q2 2008 Report

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