Dynamotive currently holds 3,874,139 shares representing approximately 8% ownership in ROC; the transaction would increase the Company’s holding to 21,874,139 shares which would represent approximately 30 % ownership. The shares will vest in 3 stages, 1/3 upon execution of final agreements expected to occur in Melbourne the week of 11th July 2011, 1/3 upon contracting of demonstration units (expected in 2011) and 1/3 upon contracting of commercial units in Australia expected within 2 years of execution of agreements.

Dynamotive currently holds a Board seat at ROC and will continue to work closely with ROC’s senior management.
This agreement builds on a range of activities by the parties over several years and the past twelve months in particular:

• Progress with the upgrading of Dynamotive’s pyrolysis oil to mobile fuels for a range of transport applications (Jet, Diesel, Gasoline). The upgrading process developed jointly by Dr. Desmond Radlein and Dynamotive is currently being evaluated by IFP Energies Nouvelles of France and may lead subject to satisfactory completion of agreed milestones to definitive agreements for its development and commercialization. ROC as part of the agreement would receive an undertaking from Dynamotive that it would receive on similar commercial terms as other parties, licenses for industrial bio oil upgrading units.
• Development of pyrolysis oil as a fuel for large diesel engines suitable for marine and power applications.
• Work by ROC in Australia to shortlist sites that offer stable and competitively priced supplies of wood feed for commercial plants. This includes non-binding MOUs with three separate feed supply organizations.
• ROC current work with the Future Farm Industries CRC, Australia’s leading organisation for the promotion of mallee eucalypts as a new tree crop on farms across the wheatbelt. ROC and the CRC are co-operating to develop industrial production of biofuels in Western Australia with a major farm forestry program that has the potential to provide sustainable biomass for dozens of biofuel plants.

Commenting on the agreement reached Andrew Kingston, President & CEO of Dynamotive said; We have built a strong working relationship with ROC since our initial collaboration in 2006, our increase in shareholding reflects the confidence we have in the Australian market, the valuable work carried out by ROC and its partners and the project pipeline developed. I look forward to our continued collaboration.

Colin Stucley (Managing Director of ROC) confirmed that this agreement builds on a working relationship between the companies that is already strong. “We look forward to continued development of opportunities in Australia with Dynamotive’s leading technologies and support from our local partners.”

About Dynamotive
Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA and Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals.

About Renewable Oil Corporation
ROC is a new Australian company established to develop pyrolysis projects in this region. It has an exclusive technology licensing agreement with Dynamotive Energy Systems Corporation of Canada, and works closely with Dynamotive and its partners.

ROC has been established in cooperation with Enecon Pty Ltd, an award-winning Australian engineering company that has specialised in bioenergy technologies and projects since 1998. ROC’s board includes personnel from Enecon and Dynamotive as well as experts in corporate governance and legal and financial issues. ROC is a private company funded by investors in Australia, Canada, and Europe.
www.renoil.com.au

Following agreement on heads of terms, the Companies explored the configuration of the proposed venture and development plans. The parties agreed that the development activities would reside with ROC and that Dynamotive would take further ownership in the Company (Dynamotive currently holds approximately 8% of ROC shares and has a Board Seat). ROC will hold the rights for the pyrolysis technology in Australia, Dynamotive would receive in return 50% of future licensing and royalty revenues. Further, ROC would make payments to Dynamotive on 50 % of the Australian master license as per heads of terms agreed previously. i.e. $250,000.-

ROC would also have access to bio oil upgrading process (patent pending) on commercial terms. The parties further agreed to negotiate a first license to use on the proposed integrated pilot demonstration unit. The upgrading process developed jointly by Dr. Radlein and Dynamotive is currently being evaluated by IFP Energies Nouvelles of France and may lead subject to satisfactory completion of agreed milestones to definitive agreements for its development and commercialization. (see Dynamotive disclosure of 29th March 2011).

The agreement would allow both Companies to lever the activities carried out to date in the development of pyrolysis technology and its application with more than 15 years of research, development, technology scale up and product applications as well as benefiting from the project pipeline under development in Australia. ROC first licensed Dynamotive’s pyrolysis technology in 2006.

Project opportunities:
ROC On 27 March 2011 – signed an MOU with Future Farm Industries CRC. CRC is Australia’s leading organisation for the promotion of mallee eucalypts as a new tree crop on farms across the wheatbelt ROC and CRC are co-operating to develop bio-fuels industrial production in Western Australia.

Supporting Links

Renewable Oil Corporation (ROC) Website

The Guelph pyrolysis plant was constructed using modules that minimize on-site activities and allow for rapid deployment. It comprises eight fully assembled modules and when fully operational will process 66,000 dry tons of biomass per year with an energy output equivalent to 130,000 barrels of oil.

The plant incorporated the latest technology and innovations in the field when built in 2007/8.  It remains the largest capacity plant in the sector.

In support of the restart, Dynamotive commenced a program to secure biomass for the plant in the Ontario market.

The plant operated dry biomass input capacities of 100 metric tons per day (> 75% of nominal capacity) and peak feed rates of 116.8 metric tons per day (90 % of nominal capacity) for a number of days.

Dynamotive’s West Lorne plant is capable of processing up to 130 tonnes per day of biomass and is located within a wood flooring manufacturing facility in Ontario, Canada.

BioOil® is a registered trademark of DynaMotive Energy Systems Corp.

The delegation was coordinated by Ms. Meera Bawa – Canadian Embassy Regional Office of the Trade Commissioner Service in Vancouver, BC and with Ms. Sandrine Caduc – Trade Commissioner, Innovation, Science & Technology located in Paris, France. The pyrolysis mission included representatives from IAR-Pole, COOPENERGIE® Picardie, Diester Industries, ETIA engineering, Institut Français Pétrole, French Atomic Energy Commission (CEA), and Maguin S.A.S.

The delegation was organized by Mr. Denis Trottier, Délégué Commercial/Trade Commissioner, Service Industries/Capital Projects & Natural Resources/Energy/Construction, Canadian Embassy in Paris, France. The fifteen member group included representatives from Germany’s Südzucker Group (French Subsidiary), Cristal Union, HONORE SAS, LYVEN, MAGUIN-INTERIS, SAINT LOUIS SUCRE, Soufflet Group, SYRAL, TEREOS, Union des Distilleries de la Méditerranée (UDM), and Union Nationale des Groupements de Distillateurs d’Alcool (UNGDA).

Dynamotive officials provided a PowerPoint Presentation and a tour of the facility. The Company would like to thank Mr. Trottier for coordinating the delegations visit to West Lorne.

Supporting Information:

PowerPoint Presentation