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

West Lorne Plant

Shipped 22 tonnes of BioOil to the U.S. and 50 cubic meters of char to a soy bean farm in Ontario, Canada, to be used as soil enhancer, as well as a number of sample shipments to potential customers. The shipments mark the restart of commercial operations since the completion of the plant upgrade to a 130 tonnes-per-day facility in late February. The Company further reported that it is planning deliveries of fuel and char in April as customers confirm orders under existing contracts.

The Company informed that its on-site 2.5 megawatt electric cogeneration package, developed by Magellan Aerospace, is expected to commence operations in April. Dynamotive has an existing power purchase agreement with the Ontario Power Authority for the generation output.

The plant’s first shipments followed testing of fuel at Dynamotive’s and the client’s facilities, and acceptance by the Company’s client. The shipment marks commencement of revenue deriving from operations at the plant.

During the month of March, the Company operated the plant completing progressively longer production runs. The first two operational runs occurred on the 29th of February – four 5 hour runs at 20 tonnes per day average feed rate and 2 hours feeding at an average capacity of 25 tonnes per day. Further production runs were conducted with continuous feeding runs on March 9th through the 11th and the 15th through the 17th, and March 20th at similar average capacity rates. Peak capacity feed was verified by Tecna engineers at 83.3 kgs per minute of sawdust representing 119.9 tonnes per day feed rate or 92.2% of revised nominal plant capacity. After each run fuel quality was measured and adjustments on plant equipment were conducted where needed.

In April, the Company plans to run the plant at higher feed rate capacities with shorter intervals between runs as the commissioning adjustments are completed. The limitation in increased rate capacity in March was due to reduced feedstock availability at the plant. Feedstock availability is increasing at site and the Company has secured alternative sources to ensure a higher rate of plant utilization.

Operations at the plant were conducted by Dynamotive operators and engineers with the support of Tecna and Tepsi staff. Dynamotive engineers and staff included three operators from West Lorne, four engineers from the Vancouver office, four from the Waterloo Research Laboratory and one engineer from the U.S. operations.

Guelph Plant

Shipped 22 tonnes of fuel to Illinois, USA, where Dynamotive will burn BioOil Plus and BioOil at Eclipse’s combustion facility on the 2nd, 3rd and 4th of April with potential clients present, and the following week with independent testing agencies. A number of tests will be made to compare the combustion profile of BioOil Plus and BioOil against #2 and #6 fuel and mixing/combining with #6 at the burner tip. The performance data will be further used for Dynamotive’s product application and customer development.

The plant had previously undergone testing and inspection processes by regulatory and technical authorities in readiness for continuous operation in late 2007. The tests conducted demonstrated the capacity of the plant to operate at its nominal design capacity of 200 tonnes per day biomass input.

Dynamotive and Evolution Biofuels produced, during the months of January and February, sufficient fuel to meet the testing requirements from potential customers. The plant is in standby mode with biomass available for the production of biofuel. Production at the plant will commence upon completion of fuel testing programs by clients, and orders being confirmed for the fuel produced.

The Guelph plant, with a capacity to convert 200 tonnes of biomass into BioOil per day, was developed in partnership with MegaCity Recycling Inc. and operates under the name Evolution Biofuels Inc. When fully operational, the plant will process 66,000 dry tons of biomass per year with an energy output equivalent to 130,000 barrels of oil.

The plant had undergone an upgrade process to increase its nominal capacity to 130 tonnes of biomass input per day, a 30 % increase in capacity, and to incorporate technological advances that were developed and implemented in Dynamotive’s 200 tonne per day capacity plant located in Guelph, Ontario. The plant incorporates a 2.5 megawatt electric cogeneration package developed by Magellan Aerospace.

The renewable biofuel produced at the plant, known as BioOil, is made from waste wood and formulated for non-transportation industrial applications. Fuel exports, as well as power generation, from the plant are expected to start in March. Output of the plant is contracted to power generation and specialty applications with some production being reserved by Dynamotive for market development purposes.

The plant was operational and for the first time the full cycle of production from wood chips to BioOil was demonstrated publicly.  The plant had previously undergone testing and inspection processes by regulatory and technical authorities in readiness for continuous operation. Previous tests conducted demonstrated the capacity of the plant to operate at its nominal design capacity of 200 tonnes per day biomass input.

Dynamotive and Evolution Biofuels (Dynamotive’s partner in the venture) based on the successful start up will now proceed with the final commissioning and synchronization of all systems task that is expected to be completed within two weeks.  The plant will be then operated by Dynamotive’s and Tecna’s staff for 60 days before handing over the plant operations to Evolution Biofuels.

The tour was part of a two-day conference in Toronto sponsored by the IEA (International Energy Association) Bioenergy Task 40-Biotrade, Bioenergy Focus Ontario and the Canadian Bioenergy Association, a national non-profit organization whose mission is to promote utilization of sustainable biomass for the production of biofuels, heat and power.

The Guelph plant, with a capacity to convert 200 tonnes of biomass into BioOil per day, was developed in partnership with MegaCity Recycling Inc. and operates under the name Evolution Biofuels Inc. This Dynamotive flagship 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.

Prior to the tour, Dynamotive’s Vice President Anton Kuipers presented the company’s strategic initiatives to conference attendees on Wednesday, September 12.

Mr. Kuipers commented during the presentation, “With two BioOil plants completed in Canada and plans underway for additional plants in Latin America and in the United States, Dynamotive is moving ahead in its global initiative to increase production of fuels from biomass.”

“During the second quarter and since it ended June 30th, the Company continued to make significant progress as we ready our new modular 200 tonne-per-day Guelph, Ontario, BioOil® biofuel plant for full operation,” commented Andrew Kingston, Dynamotive’s president and chief executive officer. “Recent business developments which will help pave the way for the company’s future growth include reaching a letter of agreement with Mitsubishi Corporation and deepening our relationship with the Consensus Business Group through the merger of a jointly held affiliate into Dynamotive.”

“Initial revenue from the Guelph plant and the expanded West Lorne operation will commence in the near future, and our business development position will improve significantly as we enter operating status,” Mr. Kingston noted. “As we approach operating status at these two plants, international interest is growing, with advanced development activities in Europe and South America, and accelerating project development activity occurring in the United States.”

Concluding his remarks, Mr. Kingston said: “With the continued volatility and insecurity of world energy markets and ever greater attention being paid to environmental issues, Dynamotive is also well positioned to be a leader in the Biomass to BioOil sector of the alternative energy market.”

Recent Dynamotive Highlights:

• Signed a detailed Letter of Agreement with Mitsubishi Corporation to explore expanded relationships
• Consensus Business Group converted their biomass JV interest into Dynamotive equity and appointed a director to Dynamotive’s Board
• Development of up to six plants in Corrientes, Argentina continues
• Commissioning and permitting of first 200 tonne-per-day (TPD) plant at Guelph, Ontario nears completion
• West Lorne expansion nearing mechanical completion, commissioning to begin late next month
• Initiated tests in Iowa to use Dynamotive’s biochar for soil enrichment and crop productivity enhancement

Approximately 40 cubic meters of wood were processed. The first run was at the equivalent daily rate of 50 tonnes of feedstock processed and the second at a rate of 100 tonnes. Dynamotive and Tecna’s engineers are currently reviewing operational data and testing is being conducted on the fuel produced.

Dynamotive plans to market this renewable fuel with the name ‘BioOil Plus’ as a green and cost competitive alternative to heating oil, fuel oil, natural gas and propane in industry. Industrial fuels represent approximately 20% of hydrocarbon use worldwide.

Further, Dynamotive demonstrated in earlier tests that BioOil Plus can be used as an input to Biomass to Liquid Processes (BTL) as a cost effective means of delivering biomass energy to these plants and in doing so break down cost and logistic barriers to the production of mobile fuels from biomass. Specification on BioOil Plus and industrial application information for the fuel are available at the company’s website.

“Cellulose-based fuels present the next frontier in sustainability and Dynamotive’s pioneering position in advanced generation biofuels is further enhanced through the achievement of this new milestone. Dynamotive believes that BioOil presents a third alternative liquid fuel to coexist with ethanol and biodiesel,” said Dynamotive’s President and CEO Andrew Kingston. “By being able to exploit any cellulose raw materials, e.g. forest industry residues, bark, biomass from fields I believe we can become a great contributor to the energy mix and accelerate the adoption of cellulose based fuels.”

Recently, at a renewable energy conference in Buenos Aires, Argentina, Kingston announced that the company reached an agreement in principle with the Provincial Government of Corrientes, in northeast Argentina, for Dynamotive, its affiliate, local and international partners to develop, subject to financing and other conditions, six similar plants in that country at a total estimated cost of US $120 million.

Dynamotive has its other plant in West Lorne, Ontario, located midway between Toronto and Detroit, Michigan now undergoing an upgrading of its systems.