Dynamotive Energy Systems Corporation (“Dynamotive”) announced it entered into a non-binding Memorandum of Understanding (“MOU”) with Genting Bio-Oil Sdn Bhd (“GBO”) of Malaysia to explore cooperation for the development of pyrolysis oil market in the South East Asia Region.
Both companies have extensive experience in bio oil and in pyrolysis technology and by pooling the know-how acquired the companies aim to consolidate their leadership position in the sector.
The MOU is valid for an initial period of 6 months ending on January 31st 2012. The period can be extended by mutual agreement. The parties further agreed to work jointly with Dynamotive’s technical partners in pursuit of the MOU objectives.
In the initial phase of the cooperation, the parties aim to:
- Obtain knowledge of pyrolysis oil production market and its development potential in South East Asia.
- Ascertain the performance and commercial viability of Dynamotive Pyrolysis Technology, with respect to empty fruit bunch (EFB) a residue from palm oil production process as feedstock.
- Evaluate the possible business opportunities for the construction of a commercial biofuel plant, including biomass quantification, characterization and evaluation for use in pyrolysis process, biofuel production, supply chain and plant location.
- Evaluation of the collaborative business model between the parties.
Subject to successfully meeting the established objectives, the parties would enter into definitive commercial agreement.