February 27, 2007
Vancouver, BC, Canada

Dynamotive Signs Contract with Ontario Power Authority to Supply Power to the Grid from its West Lorne Biofuel Plant

Vancouver, Canada, February 27, 2007 – Dynamotive Energy Systems Corporation (OTCBB: DYMTF), a leader in biofuel technology and products based on its advanced fast pyrolysis process, announced today that it has signed a contract with the Ontario Power Authority to supply renewable power under the province’s Standard Offer Program (‘SOP’). Under the terms of the newly signed contract, Dynamotive will deliver electricity to the grid from its 2.5 MW cogeneration facility at West Lorne.

Dynamotive will sell renewable power to the grid at 11 cents per kilowatt hour, or more, for up to 20 years.  Fuel for the plant is derived from wood residues from Erie Flooring and Wood Products that are converted to BioOil through Dynamotive’s patented fast pyrolysis process. The plant is the first commercial plant of its kind in the world.

Dynamotive President and CEO, Andrew Kingston, said “This is an excellent deal for both Ontario and Dynamotive. The 11 cents a kilowatt hour rate is better than previous rates and leaves open the opportunity to earn additional premiums for peak power generation. 

"With about 20,000 megawatt hours of generating time in a year at $110 a megawatt hour, and, in addition, with our existing biofuels contracts, this is an outstanding opportunity for us to achieve a premium rate of return on our investment.

"Our turbine in West Lorne is the world’s first to operate commercially on BioOil, and we believe this program will create a lot of additional positive consideration with regard to BioOil being an excellent, renewable industrial fuel for power generation. Importantly, our fuel is produced using an environmentally sound process and does not rely on food crops or subsidies to be economically competitive for renewable power generation,” said Kingston.

BioOil produces substantially less smog-precursor NOx emissions than conventional oil as well as little or no SOx.  BioOil and Intermediate BioOil are price-competitive replacements for heating oils #2 and #6 which are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program.

About OPA Standard Offer Program

The program was initiated in 2004 and is expected to add about 1,000 MW over the next 10 years. It makes it easier for operators of small renewable energy generating facilities to participate in Ontario's electricity supply system by supplying power through their local electricity distributors and being paid a fair and stable price for the power they provide. For more information go to www.powerauthority.on.ca.

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