The Companies agreed to co-operate in the development of the process pioneered by Dr. Desmond Radlein and Dynamotive. Under the terms of the agreement IFPEN would continue the development of the process at its facilities in France. Axens would contribute to the final stages of the process development and would commercialize the process once it reaches commercial stages.

Process Highlights:

• The bio-oil is deoxygenated to a sufficient degree to render it miscible with typical refinery feeds, minimizing investments and operating costs.
• Its oxygen content is substantially reduced so that any further hydrogen requirements related to post-treatment in a refinery are strongly decreased to a level suitable with conventional petroleum product upgrading processes.
• The product is essentially water free as the residual water forms a separate phase.
• The corrosiveness of the product is strongly decreased since most of the organic acids remain in the water phase.

About IFP Energies nouvelles

IFP Energies nouvelles (IFPEN) is a public-sector research, industrial innovation and training center active in the fields of energy, transport and the environment. Its mission is to provide public players and industry with efficient, economical, clean and sustainable technologies to take up the challenges facing society in terms of climate change, energy diversification and water resource management. It boasts world-class expertise.

For details, please visit its website at http://www.ifpenergiesnouvelles.com

About Axens

Axens, www.axens.net, is an international provider of advanced technologies, catalysts, adsorbent and services, with a global reputation for basic engineering design excellence. The main scope of Axens’ business is focused on the conversion of oil, coal, natural gas and biomass to clean fuels as well as production and purification of major petrochemical intermediates. Axens’ global offer is based on: highly trained human resources, modern production facilities and extensive commercial feedback from plants using our processes and catalysts all around the world.

About Dynamotive Energy Systems Corporation

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil and Bio Char. Dynamotive developed an upgrading process to produce transport fuels from pyrolysis oils in collaboration with Pyrolysis expert Dr. Desmond Radlein. The process was developed at Dynamotive’s research facility in Waterloo, Ontario.

Dynamotive has received support from Industry Canada through the Technology Partnerships Canada program. The company has also been supported by Sustainable Development Technology Canada, an arm’s-length not-for-profit organization established by the Government of Canada in 2001.

www.dynamotive.com

Forward Looking Information

Statements in this news release concerning the company’s business outlook or future economic performance; including the anticipation of future plant start-ups, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, 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”. Forward-looking statements are by their nature 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, changes in energy prices, availability of capital, and the company’s ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans and schedules, customer and partner acceptance of new projects, changes in input pricing, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the company’s 20F and other disclosure filings with the Securities and Exchange Commission.

GE joins consortium to develop Australian aviation biofuel

Sydney, Australia – 1 September, 2011 – GE (NYSE:GE) today announced that it has joined Virgin Australia and a consortium of other partners to research and develop commercial biofuel for the aviation industry. The consortium will focus on pyrolytic conversion of biomass from mallee eucalypt trees and intend to have a pilot biofuel production unit operating in Australia by 2012.

The agreement comes as the aviation industry puts added focus on carbon emissions as it becomes covered by emissions trading schemes around the world. As part of GE’s ecomagination initiative, the company is already leading the way in the development of fuel efficient jet engines within its sustainable transport portfolio; the development of biofuels is a natural extension of this.

Ben Waters, Director of ecomagination, GE Australia and New Zealand said: “Innovation and creativity will play enormous roles as part of the transition to a low carbon future. We already invest a huge amount in the development of more efficient and alternative energy sources in the aviation industry and beyond, and we hope to bring a huge amount of knowledge to this partnership.”

A recent CSIRO report estimated that the aviation industry could cut greenhouse gas emissions by 17%, generate more than 12,000 jobs and reduce Australia’s reliance on aviation fuel imports by $2 billion per annum over the next 20 years through the adoption of biofuels. [CSIRO]

The consortium includes Renewable Oil Corporation, the Future Farm Industries CRC, and Canadian biofuels company Dynamotive Energy Systems Corporation alongside Virgin Australia and now GE.

As well as the development of the fuels, GE will assist with the certification process. Before being approved for commercial use, new fuels undergo rigorous tests in laboratories, on engine test rigs and then in carefully monitored non-commercial flights.

About GE
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company’s web site at www.ge.com/au.

About Virgin Australia
Virgin Australia group of airlines (ASX: VBA), formerly the Virgin Blue group of airlines, was launched in 2000 as the first sustainable low-fare airline in Australian skies. Today the group employs over 7,000 people and includes multi-award winning domestic airline Virgin Australia (formerly Virgin Blue); international long-haul airline V Australia; international subsidiary airline Pacific Blue; and Polynesian Blue, a joint venture airline with the Government of Samoa. Virgin Australia is currently in the process of re-launching its domestic and short-haul international product, and both V Australia and Pacific Blue airlines will operate as Virgin Australia by the end of 2011.

Virgin Australia operates a fleet of 89 modern Boeing 737, 777 and Embraer E-Jet aircraft flying to 32 Australian and 16 international destinations including the USA, UAE, New Zealand, Indonesia, Thailand, Papua New Guinea, Fiji, Samoa, Tonga, Vanuatu and the Cook Islands.

About Dynamotive Energy Systems Corporation
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. Dynamotive has currently a co-operation agreement with IFP Energies Nouvelles on upgrading and the parties are in exclusive negotiations for the commercial development of this process.
www.dynamotive.com

About Renewable Oil Corporation
Renewable Oil Corporation Pty Ltd (ROC ) is an Australian company established to develop pyrolysis projects in this region. It has an exclusive technology licensing agreement with Dynamotive and works closely with Dynamotive and its partners. ROC’s board includes award-winning Australian engineering personnel as well as the CEO of Dynamotive and Australian experts in corporate governance and legal and financial issues. ROC is a private company funded by Australian and overseas investors.
www.renoil.com.au

About Future Farm Industries Co-operative Research Centre
Future Farm Industries is an incorporated, national joint venture of southern Australia’s leading agricultural R&D organisations which is working on a range of profitable and sustainable farming systems and technologies to assist livestock and crop producers adapt to climate change. Under its ‘energy tree cropping’ initiative, it draws on the resources and expertise of the WA Departments of Environment and Conservation, and Agriculture and Food, and CSIRO to undertake the necessary R&D for on-farm mallee production. Toowoomba-based Biosystems Engineering is FFI CRC’s partner developing the mallee harvester and biomass supply chain technologies.
www.futurefarmonline.com.au

Media contacts:

Joanne Woo
Corporate Communications Director
GE
(02) 9324 7467

Attachments

Announcement on GE Website
Original Consortium Announcement – July 6, 2011
Further Publications on Australian Projects

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.

About Genting Bio Oil
GBO is an indirect subsidiary of Genting Berhad (www.genting.com). GBO supports the development and production of bio-oil from empty fruit bunches, a waste material of the palm oil industry using pyrolysis technology.

About Dynamotive
Dynamotive Energy Systems Corporation (www.dynamotive.com) is an energy solutions provider headquartered in Vancouver, Canada. 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.

Attachments

Dynamotive / Genting Bio-Oil Presentation

The Companies had entered into a Memorandum of Understanding in January of 2010 (extended in March 2011)  to evaluate the process at technical, economic and intellectual property level and subject to reaching satisfactory results negotiate definitive agreements for its commercial development.

The process is Patent Pending.

About IFP Energies nouvelles

IFP Energies nouvelles (IFPEN) is a public-sector research, industrial innovation and training center active in the fields of energy, transport and the environment. Its mission is to provide public players and industry with efficient, economical, clean and sustainable technologies to take up the challenges facing society in terms of climate change, energy diversification and water resource management. It boasts world-class expertise.

For details, please visit its website at http://www.ifpenergiesnouvelles.com

About Dynamotive Energy Systems Corporation and Propietary Pyrolysis Oil Upgrading Process

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.

Dynamotive developed an upgrading process to produce transport fuels from pyrolysis oils in collaboration with Pyrolysis expert Dr. Desmond Radlein.  The process was developed at Dynamotive’s research facility in Waterloo, Ontario.  Dynamotive recently entered into an agreement with Virgin Australia, Renewable Oil Corporation and the CRC in Australia to develop sustainable aviation biofuels.

Dynamotive has received support from Industry Canada through the Technology Partnerships Canada program.  The company has also been supported by Sustainable Development Technology Canada, an arm’s-length not-for-profit organization established by the Government of Canada in 2001.

www.dynamotive.com
Tel. +1 (800) 852-0938

Attachments

BioOil Upgrading Report
Dynamotive Upgrading Presentation
Dynamotive & IFP BioOil Upgrading Press Release – 29/03/2011
Dynamotive & IFP BioOil Upgrading Press Release – 30/06/2010

VIRGIN AUSTRALIA PARTNERS TO DEVELOP UNIQUE AUSTRALIAN BIO-FUEL

About Dynamotive Energy Systems Corporation

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.

Dynamotive has also developed an upgrading process to produce transport fuels from pyrolysis oils in collaboration with Pyrolysis Expert Dr. Desmond Radlein.   Dynamotive has subsequently entered into an agreement with IFP Energies nouvelles to explore the potential and development of the upgrading process. Dynamotive has received support from Industry Canada through the Technology Partnerships Canada program.  The company has also been supported by Sustainable Development Technology Canada, an arm’s-length not-for-profit organization established by the Government of Canada in 2001.

www.dynamotive.com

About Renewable Oil Corporation

Renewable Oil Corporation Pty Ltd (ROC ) is an Australian company established to develop pyrolysis projects in this region.  It has an exclusive technology licensing agreement with Dynamotive and works closely with Dynamotive and its partners.  ROC’s board includes award-winning Australian engineering personnel as well as the CEO of Dynamotive and Australian 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

About Future Farm Industries Co-operative Research Centre

Future Farm Industries is an incorporated, national joint venture of southern Australia’s leading agricultural R&D organisations which is working on a range of profitable and sustainable farming systems and technologies to assist livestock and crop producers adapt to climate change. Under its ‘energy tree cropping’ initiative, it draws on the resources and expertise of the WA Departments of Environment and Conservation, and Agriculture and Food, and CSIRO to undertake the necessary R&D for on-farm mallee production. Toowoomba-based Biosystems Engineering is FFI CRC’s partner developing the mallee harvester and biomass supply chain technologies.

www.futurefarmonline.com.au

Media Enquiries:

Emma Copeman, Manager Corporate Communications – Virgin Australia – 0421 702 193

Colin Stucley, CEO – Renewable Oil Corporation – 0411 461 472

Kevin Goss, CEO – FFI CRC – 0418 274 361

Dynamotive Energy Systems Corporation: + 1 800 852 0938

Attachments

Announcement on Virgin Australia Website
Announcement on GE joining Consortium on GE Website
Further Publications on Australian Projects

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

Pyrolysis oils present several challenges to overcome as they are typically high in water, solids and acids and do not meet the specifications of fossil fuels. Dynamotive R&D venture with Dr. Radlein developed a unique process that was demonstrated at the Company’s research laboratory to upgrade pyrolysis oil. The process can potentially overcome these challenges and could provide an economically viable path to upgrade BioOils to mobile fuels. Dynamotive and IFP entered into an initial Memorandum in 2010 to explore the process potential.

Extension of MOU:

March 29th 2011. Dynamotive Energy Systems Corporation announced that the Company and IFP Energies Nouvelles (IFPEN) extended the Memorandum of Understanding to cooperate in the field of pyrolysis oil upgrading with the aim to produce second Generation Biofuels announced in June 2010 to July 2011. The extension of the current Memorandum of Understanding allows for completion of the work program agreed to in 2010. The work program included economic, technical and intellectual property review. In addition, the parties expressed their interest to explore longer term co-operation leading to the potential commercialization of the process.

In the period to date; the phase 1 economic evaluation was completed with positive conclusions in regards to its competitiveness to alternative biomass to transportation fuels routes.

Phase 2 related to a technical feasibility study, based on Dr. Radlein and Dynamotive preliminary results at their research facility, is currently performed by IFPEN and scheduled to be achieved by June 2011.

Dynamotive recognizes that the development of synthetic fuels requires specific expertise which IFPEN has in this field. The existing and extended memorandum established progress milestones through 2010 and 2011. Subject to satisfactory completion of the milestones, Dynamotive and IFPEN may enter into definitive agreements thereafter.

The process is Patent Pending.

About IFP Energies Nouvelles

IFP Energies nouvelles (IFPEN) is a public-sector research, industrial innovation and training center active in the fields of energy, transport and the environment. Its mission is to provide public players and industry with efficient, economical, clean and sustainable technologies to take up the challenges facing society in terms of climate change, energy diversification and water resource management. It boasts world-class expertise.
For details, please visit its website at http://www.ifpen.fr

Attachments

BioOil Upgrading Report
Dynamotive Upgrading Presentation

• Continued greater biomass growth for the third consecutive year in biochar-amended soils;
• Nutritional quality of plants grown in biochar-amended soil is verified by near infrared spectroscopy for the first time;
• Plant nutrient uptake efficiency and plant nutritional quality is greater in plants grown in biochar-amended soil;
• This greater plant nutritional value leads to greater milk production from these forage plants;
• In addition to the greater nutritional value of plants grown in biochar-amended soil as well as greater milk production, environmental advantages are anticipated through reduced leaching and reduced greenhouse gas emissions;
• These results were achieved with a relatively low biochar application rate (3.9 t/ha), in a northerly climate (N45˚), on normal agricultural soils.

The results of these trials reinforce other research pointing to potentially important advantages for the use of biochar as an agricultural soil amendment, both for economic and environmental reasons.

Barry Husk, President, Blue Leaf Inc. commented: “These results are very promising for the use of biochar in forage crops for dairy production. Based on these results, it is anticipated that, under similar conditions, dairy farm producers could expect both increased biomass growth, as well as greater milk production, from the use of biochar as a soil amendment. These new preliminary findings point to the possibility of substantial economic advantages for the agricultural use of biochar, in dairy farming in particular. In addition, due to the higher plant nutrient uptake, it is further anticipated that the use of biochar as a soil amendment will contribute to attenuating certain environmental problems related to the inefficient use of agricultural nutrients.”

Key Terms:

• A JV would be established whereby Dynamotive would contribute 50% of the license for Australia and its know how on development and construction of pyrolysis units as well as access to its facilities and partnerships.
• ROC would acquire from Dynamotive the balance of the Master License (50%) and make payments to Dynamotive over an agreed period of time.
• The Master license is valued at $ 500,000.-
• The JV would also benefit from a license to build and operate a pilot pyrolysis & upgrading unit – license terms to be agreed. To include license fee and royalties per plant.

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.
• Investigation 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.  ROC is also working with a national research organisation to develop a program aimed at final commercialisation of a major farm forestry program that has the potential to provide sustainable biomass for dozens of biofuel plants.

Dynamotive and ROC will now work on finalising details of the joint venture and the business plan for process demonstrations and commercial plants in Australia.

About Dynamotive
Dynamotive Energy Systems Corporation is an energy solutions provider based in Canada.  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 transport fuels and chemicals.

About ROC
Renewable Oil Corporation Pty Ltd is a privately owned Australian company that specialises in the development of bioenergy projects using a variety of sustainable biomass feeds.  ROC is evaluating pyrolysis projects at several locations in Australia and has a number of MOUs for feed supply either in place or under negotiation.