Dynamotive Develops Biofuels in Argentina - Translated from Spanish

By Karina Grazina
Thursday 10th May 2007

Buenos Aires (Reuters) – The Canadian firm Dynamotive will invest up to $140 million in Argentina to produce a fuel created from forest and agricultural residues, said the president of the firm on Thursday who commented that Latin America will become a key producer of biofuels.

Dynamotive, the firm that develops and commercializes the technology of biofuels will construct six plants in the province of Corrientes to produce “BioOil,” a fuel that is cheaper and is less polluting than those derived from crude oil.

“The total investment would be between 120 and 140 million dollars (…) The agreement with the province of Corrientes was signed this morning,” said Andrew Kingston, President of the firm to Reuters.

“We will be able to construct up to six typical Dynamotive plants that will process 200 tonnes of biomass (forest and agricultural residues) a day and will produce the equivalent of 500 barrels of petrol per day,” he added.

The first plant will begin operations in 2008, while the total investment would mature in a maximum of four years.

“I calculate that if we do this in a progressive manner, the total investment will take between three and four years; if we do this in an accelerated method, it will take two years,” said Kingston.

Dynamotive will fund part of the total investment, and the rest will come from private capital.

However, the executive affirmed that the company is open to combine efforts with public capital.

Regional Projection

Once installed in Argentina, Dynamotive looks to expand to Chile, Uruguay, Brazil and a couple of countries in Central America.

“Latin America presents a focal point for development of the biomass market, which is very important, and we believe that in the future, will be one of the largest providers of Biofuels in the world,” said Kingston.

Founded in 1991, the firm has developed an industrial process called “Fast Pyrolysis” through which residual cellulosics from wood, wheat stalk, tree bark, among other materials are transformed into BioOil.

Dynamotive began to develop this technology 10 years ago in Canada, where the firm already has two commercial plants, one of which will begin operation next week.

According to Kingston’s explanation, BioOil can replace traditional fossil fuels.

“In principle, this (BioOil) follows the same process as that of the petroleum industry in its beginning stages. It will be used in the same manner as heavy fuels in industrial applications,” said Kingston.

Along with Canada, Dynamotive also has operations in the US, Australia, Europe, China and South Africa.

The development of biofuels is beginning in Argentina, and analysts concur that South American countries have an enormous potential for growth in this sector.

Argentina is the world’s third largest soy producer, one of the feedstock’s used in the production of biodiesel.