According to the International Biochar Initiative , “ Biochar is a 2,000 year-old practice that converts agricultural waste into a soil enhancer that can hold carbon, boost food security and discourage deforestation. The carbon in biochar resists degradation and can remain viable in soils for hundreds to thousands of years. Biochar is produced through pyrolysis or gasification — processes that heat biomass in the absence (or under reduction) of air. The process creates a fine-grained, highly porous charcoal that helps soils retain nutrients and water.”

While intensive study of biochar-rich dark earths in the Amazon (terra preta) has led to a wider appreciation of biochar’s unique properties as a soil enhancer, it is intriguing to speculate whether there might be similar effects on productivity in our temperate region soils, but little testing of these materials has been done as yet.

A start to finding the answer to this question is a field plot that has been established on a farm near Shakespeare. The local farmer supplied the test field plot, biochar application support and GPS mapping; Dynamotive Energy Systems Corp. supplied CQuest ™ Biochar made from its fast pyrolysis process; and Staff from the Ontario Ministry of Agriculture, Food and Rural Affairs will be assisting in the monitoring and interpretation of the data from the plot. Large enough strips to accommodate conventional harvesting equipment have been laid out in the field, alternate strips have received CQuest biochar and the entire plot will be monitored over the next growing season to determine if there are any differences in the growth or yield of the grain corn crop that will be planted in the field.

Tom Bouchard, Chief Operating Officer from Dynamotive commented, “Many studies are underway regarding biochar efficacy as a soil enhancement, but each soil type, climate and crop variation provides a new opportunity to generate useful field data. We are pleased to be working with OMAFRA and progressive farmers in Ontario to continue adding to the body of knowledge regarding biochar.” Keith Reid, Soil Fertility Specialist from OMAFRA added, “While many questions remain about the best way to use biochar for the greatest benefit here in Ontario, the process of finding the answers has begun.”

For details, please visit the Ministry’s website Here.

Contact:
D. Keith Reid, M.Sc., CCA-Ont., Soil Fertility Specialist
Tel: 519.271.9269

Key results include increases in biomass produced with biochar amended soils versus non-treated control areas. In the case of soybean in 2008, a 20% increase in grain yield was shown and for a forage mixture in 2009 a 100% increase in fresh biomass was obtained. Other parameters showing increases with CQuest Biochar included earthworm, nematode and mycorrhizal root colonization, supporting the hypothesis that biochar may serve as a refuge for soil microbes. Surface soil water infiltration was also greater in biochar amended soil.

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: “This study makes a significant contribution to the growing body of knowledge regarding the positive impacts that biochar can have as a soil amendment. “Tom Bouchard, Chief Operating Officer, Dynamotive added, “We are pleased that Barry and the BlueLeaf team continued the study over a 2 year period. This enabled the collection of longer term data regarding how one relatively light application (at the initiation of the trials) of CQuest biochar behaves as a soil amendment under real world conditions.“

Full details of the Blue Leaf Report is available Here.

About Blue Leaf Inc.

BlueLeaf is a social purpose private corporation active in environment issues related to water and agriculture.

Contact:
Barry Husk, President
bhusk@blue-leaf.ca
www.blue-leaf.ca

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.

“In light of the recent accelerated activity in the biomass to energy market, from project proliferation to technology scale ups and consolidation throughout the supply chain, as well as recent expressions of interest by third parties in possible transactions with the company, it is now appropriate to initiate an external process to formally explore strategic alternatives,” stated Andrew Kingston.

The Company said, it does not intend to disclose developments regarding the review of strategic alternatives, other than the retention of its investment bank, Cascadia Capital, unless and until an agreement has been reached.

About Cascadia
Cascadia Capital is an independent, national investment bank located in Seattle.  Founded in 2000, Cascadia provides corporate finance and m&a services to companies in the following sectors:

Sustainable Industries, including clean technology and renewable energy,
Information Technology, including cloud storage, governance, risk and compliance and internet and new media
Middle Market, including business services, consumer products, retail, food and beverage

For more information on Cascadia, please visit www.cascadiacapital.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.

Forward Looking Information

Statements in these new releases and audios 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.

Increased sales of BioOil® during the quarter, combined with the Company’s aggressive cost cutting measures (previously disclosed) have resulted in significant reduction in losses.

Losses for the Quarter ended September 30, 2009 were reduced to $1.1 million, or $0.004 per share, compared with net loss of $2.8 million or $0.01 per share in the third quarter of 2008. Dynamotive’s net loss for the nine months ended September 30, 2009 was $4.3 million, or $0.02 per share, compared with a net loss of $7.1 million, or $0.03 per share for the nine months ended September 30, 2008.

Excluding stock-based compensation, the net loss for the third quarter ended September 30, 2009 was $0.9 million, compared with a net loss of $2.4 million for the same quarter in 2008. Dynamotive’s net loss for the nine months ended September 30, 2009 was $3.5 million, compared with a net loss of $5.4 million for the same period in 2008.

Total non-cash expenses for the third quarter were $0.2 million in 2009 ($0.4 million in 2008) and for the nine months ended were $0.8 million ($1.7 million in 2008), resulting from non-cash compensation and other non-cash charges

During the 3rd Quarter, the Company continued its development activities in BioOil upgrading and advanced discussions with strategic partners in regard to joint development and marketing of its BioOil production and upgrading processes.

Independent tests continued on upgraded BioOil A and B further confirming the capacity to upgrade pyrolysis oil to synthetic hydrocarbons.

The Company continues to prioritize third party developments. Further details can be found in the Management Discussion and Analysis section of the financial statements which can be accessed through SEDAR and are also available on the Company’s website www.dynamotive.com.

The Company has funded its operations through product sales, loans by Directors and Management and equity contributions by strategic partners. The Company continues to have a working capital deficiency at quarter end which the Company is seeking to correct through asset sales and possible new equity financing in respect of which there can be no assurances given at this time. Further details can also be found in the Management’s Discussion and Analysis section of the financial statements.

At quarter end, the Company’s CFO’s contract expired. The Company’s Audit committee is working together with management in securing a replacement for Mr. Richardson. Mr. Richardson continues to act as a consultant to the Company.

The Investor Conference call is scheduled for Monday 14^th December at 10:00 AM Eastern Standard Time, following instructions: from North America – 1.800.346.7359 and from International – 1.973.528.0008 using Passcode – 621884  and via webcast at this link – http://www.visualwebcaster.com/event.asp?id=64618

Highlights during the Quarter:

• Announced in August the receipt of orders of BioOil from a US based client over a period of six months. Deliveries of BioOil have been completed to schedule and are continuing at the time of writing.

• The Company received an order extension for a further 9 shipments of BioOil from its US based client to be delivered over a period of 3 months which takes planned deliveries of BioOil from the plant to April 2010

• Filed Q2 results and the Company continued to implement its strategy to reduce costs, promote sales of product and licensing of its strategy, product R&D, asset utilization and development of strategic alliances to service market opportunities.

• CQuest Biochar test program in partnership with BlueLeaf Inc. provided a mid-season update on BlueLeaf’s commercial farming field trial utilizing Dynamotive’s CQuest Biochar begun and reported in 2008, that such findings further support the economic potential for CQuest Biochar as soil enhancer.

• Second year harvest results are expected to be available within 60 days of writing and will be published when available.

• Updated commercial targets for 2009/2010; the Company’s going forward plan builds on Dynamotive’s competitive advantage and position in the green fuels market place. Dynamotive is one of only two companies with the demonstrated capacity to build multi-hundred ton/day biomass fast pyrolysis plants and is alone in having operational commercial plants in this size range. In addition, Dynamotive has a technology that has been proven at commercial scale and it retains robust technical capabilities.

• Announced that the Company successfully applied the BioOil upgrading process to BioOils produced from a variety of feedstocks. The feedstocks from which the BioOils were produced included sugar cane bagasse, bark rich forest trimmings, softwoods and palm fronds. BioOils upgraded were of widely varying quality and in some instances had been in storage for several years. The results enhance the prospects of the BINGO process in that they demonstrate its robustness and versatility. Furthermore, they open the possibility of upgrading BioOils from a variety of biomass sources into a single uniform hydrocarbon product.

Summary financial results are presented as follows:

Unaudited Consolidated Statements Of Loss and Comprehensive Loss

(expressed in U.S. dollars)

As previously advised, the Company will continue to timely reporting quarterly results and material events as they arise. Following up on the last shareholder/investor conference call in September 2009, the Company will hold it’s next conference call via audio webcast on Monday, December 14, 2009, at 10:00 AM Eastern; following instructions: from North America – 1.800.346.7359 and from International – 1.973.528.0008 using Passcode – 621884  and via webcast at this link – http://www.visualwebcaster.com/event.asp?id=64618. In addition, the Company will provide project and other updates on the Company’s website.

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

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 products from Stage 1 of the BINGO upgrading process (UBA) were similar in density, oxygen content, TAN (total acid number), molecular weight distribution, among other physico-chemical properties, to those produced from hardwoods.

Analysis of second stage upgraded BioOil samples (UBB) from hardwoods have been previously provided to 3 independent refiners in Europe and in the Far East established the potential for development of synthetic hydrocarbon fuels showing gasoline, jet, gasoil and vacuum gasoil fractions.

The results enhance the prospects of the BINGO process in that they demonstrate its robustness and versatility. Furthermore, they open the possibility of upgrading BioOils from a variety of biomass sources into a single uniform hydrocarbon product.

The upgrading process addresses several critical issues in the development of sustainable fuels from biomass.

Food vs. Fuel: The Company converts residual biomass from agricultural and forestry and/or dedicated non-food crops through a thermochemical process into BioOil and Biochar. BioOil and Biochar plants can coexist with existing forestry and agricultural facilities, providing an additional benefit to operations.

Yield: Dynamotive’s pyrolysis process converts roughly 85% of the total biomass feed into useful solid (char) and liquid (BioOil) fuels. The balance is utilized to provide energy to the process.

Yields of Diesel/Gasoline from BioOil through the Stage 2 upgrading process of 37% have been achieved at bench-scale. The net overall yield from whole biomass to diesel/gasoline is approximately 25%, which to the Company’s knowledge is the highest ever reported.

Update on Upgraded Bio Oil Analysis
Dynamotive Energy Systems Corporation announced that analysis completed independently by two refiners have corroborated initial results published earlier. The distillation of the samples provided showed presence of gasoline, jet, gasoil and vacuum gasoil fractions.

SIMDIST (simulated distillation) Approximate fractions.
Gasoline (15C – 145C) 20 %wt
Jet (145C – 230C) 31 %wt
Gasoil (230C – 375C) 31 %wt
Vacuum Gasoil (375C – 560C) 18 %wt

Demonstrating a significant upgrading of the crude BioOil to the UBB, Analysis further confirmed that the most highly refined oil, UBB, has oxygen content of less than 0.1% and it reached a level of conventional oil products. Elemental analysis (CHONS) of Upgraded BioOil B (UBB) Carbon 87.7 Hydrogen 12.2 Oxygen 0.01 Nitrogen <0.01 Sulfur 0.0001

Dynamotive is continuing its research and development efforts in BioOil upgrading and has completed basic design on the development of a second pilot plant to further advance the process.

Cautionary Notes:
Although Dynamotive believes the yield and technical data described herein are reasonable estimates based on its current knowledge, it cautions that these results were achieved at bench-scale levels only. While Dynamotive believes the process can be scaled-up using conventionally available upgrading equipment, until such upgrades are in place on a large scale and have operated for a longer term, these estimates may be subject to material adverse changes.
® BioOil is a registered trademark of DynaMotive Energy Systems Corp.

Forward Looking Information

Statements in these new releases and audios 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.

The going-forward plan builds on Dynamotive’s competitive advantage and position in the green fuels market place. Dynamotive is one of only two companies with the demonstrated capacity to build multi-hundred ton/day biomass fast pyrolysis plants and is alone in having operational commercial plants in this size range; it has technology that has been proven at commercial scale and it retains robust technical capabilities.

Dynamotive has developed a product mix that provides multiple outlets for its plant outputs and a leading edge R&D program that has clear path to show the technology is mobile fuel chemical extraction capable.

In the mobile biofuel sector, Dynamotive has developed a proprietary research path as described above and is well positioned to service other processes. Dynamotive’s products can also be an input to emerging gasification and syngas technologies for the production of mobile fuels as has been proven in gasification tests on BioOil Plus™ conducted in Germany.

Further, Dynamotive believes its plants can be commercially viable at significant lower throughputs than competing technologies and provide flexibility in configuration, being able to produce BioOil® and ship product for further processing in other locations.

The combination of 12 years’ experience in process, technology and product development, coupled with plant operating experience and project development provide an advantage that the Company will capitalize on.

Dynamotive has substantially completed its capital investment program – more than $100 million in development, its development of 4 plants through 5 generations of technology, and has a product and project pipeline that meets market needs and an asset base that it can leverage to ensure financial viability. The Company is now positioned to increase revenue generation and be on its way to commercial viability in the near term.

The Company aims to achieve commercial viability by increasing product sales and technical services, licensing of plants which combined with continued cost cutting and restructuring of operations makes this goal achievable in the foreseeable future.

The cornerstone of Dynamotive’s commercial strategy is to focus its resources on core activities while levering strategic relationships to continue to develop its technology and product portfolio while maintaining and increasing its presence in the market place through development partnerships.

Based on the commercial plan, corporate operations will be focused on a) commercial activities: development of strategic alliances, marketing, licensing of technology, project and technical support and administration and compliance b) research and development based in Waterloo, Ontario and c) plant operation and demonstrations of the technology at West Lorne, Ontario.

Strategic Alliances

The Company is in discussions with potential partners in the energy sector; having completed its foundation work on technology and products, the Company offers today 12 years of development in process, technology, products and applications including a path to the production of mobile fuels from pyrolysis oil.

The Company has the assets, the know-how and a product mix that positions it uniquely in the bio-energy space; its plants provide flexibility in configuration and product mix as well as commercial viability at scales that are far smaller than other 2nd generation biofuel alternatives.

The Company has received co-operation of leading players in the energy sector both conventional and alternative for the analytical phase of its upgrading process as well as its product development and technology path.

It is a stated objective of management to continue in this path and to seek strategic alliances to accelerate development and market penetration.

Marketing / Licensing

Management’s focus is that of supporting development efforts by the Company’s partners, having established a project pipeline and knowledge base, the Company will prioritize third party developments.

The Company has agreements in place with Renewable Oil Corporation (ROC) in Australia and with Prius Developments SA in Switzerland. Under the marketing agreements in place and being negotiated, ROC will take the responsibility for development in Australia, New Zealand and Asean Countries.

ROC is currently developing projects in Australia and is supporting third party projects in Indonesia and Malaysia amongst others.

Prius Developments SA currently represents Dynamotive in France, Italy, Switzerland, Austria and Denmark.

Prius Developments SA is developing projects in Switzerland with a first project currently at the financing stage and is supporting project inquiries by third parties in the energy and biomass sector in its territories.

Based on the same principle of development, Dynamotive is in negotiations with parties for developments in US (Arkansas next lead project), Latin America (Argentina which currently is at financing stage) and China with the objective to have third party development structures in place in 2010 in these markets.

Management expects to complete the licensing of two new plants within 12 months; additional projects have reached financing stages in 3 different jurisdictions, and the Company is further supporting development efforts by its agents and joint venture parties in other regions. The Company has seen increased interest in its technology in the past 6 months which can be attributed to increase in oil prices and implementation of mandates in the use of renewable fuels and the Company’s success in product development as well as in increased sales.

Project Development and Technical Support

Dynamotive renewed its strategic alliance with Tecna SA. Through this agreement, the Company provides engineering and technical support to its marketing partners and licensors providing clients access to world class engineering capabilities. Tecna will act as Owner Engineer and technical advisor. This agreement allows Dynamotive to concentrate its resources on Technology and Product R&D while ensuring full technical support for its operations worldwide.

Technology

Dynamotive’s West Lorne Plant is operating consistently and at progressively higher output levels, operating consistently at 70% to 90% capacity. The product output is of consistent quality too. Shipments are being made regularly to clients. Sales are expected to progressively increase as the market and clients get further acquainted with the products.

The plant engineering is sound and is replicable. Multiple plant demonstrations have been made to energy, engineering and biomass firms in support of marketing efforts. This trend is continuing to grow with further diligence visits planned through year end.

Product

Dynamotive has developed multiple product lines, BioOil, BioOil Plus, BioOil Fuel Oil Blends and Upgraded BioOil A and B as well as Char. Each product meets specific requirements.

BioOil: Heat and Power application, Chemical base.

BioOil Plus: Gasification – Syngas.

BioOil Fuel Oil Blend: 5% and 10% blend – displacement of Fuel Oil / Bunker in existing installations.

Upgraded BioOil A and B: Mobile Fuel Applications.

Char: Briquetting, Pellets, Agricultural Application.

Dynamotive is today selling BioOil and Char in the market place; the Company sees a growing trend in demand for its base products (BioOil and Char) and has started marketing BioOil Fuel Oil blends.

Sales targets from its West Lorne plant are $ 1.5 million for the next 12 months. This is based on current contracts being extended and new contracts for bio fuel blends, and char being completed.

Research & Development

Research and development differentiates Dynamotive, our research and technical teams are experienced and are comprised of experts in the field. Our product research team has been pivotal in developing a BioOil that is stable and that can be stored and transported with confidence. Dynamotive BioOil has been stored for periods exceeding two years and successfully combusted. The capacity to store and transport BioOil is key in our commercial strategy, as it allows for flexible configuration of plants and the opportunity to ship product worldwide. Dynamotive has shipped BioOil from Canada to Europe, Asia, Australia, the US and Latin America.

Our team has further developed BioOil Plus as a means of increasing energy density and has this fuel used in thermal applications as well as an input to gasification processes. Dynamotive BioOil Plus was successfully tested for the production of syngas. This product provides the following advantage over direct gasification of biomass, higher energy density 14/1 vs. raw biomass and ease of use at the gasification line. Further, being a stable product it can be produced at remote locations, shipped and stored prior to use.

BioOil Fuel Oil Blends: Dynamotive’s research team has demonstrated 5 and 10% blends of BioOil and Fuel Oil. This product is intended to be utilized in stationary applications and rail and maritime uses. The Company aims to position the product as a blending agent undercutting palm oil, biodiesel and ethanol in this market. This product allows for partial displacement of hydrocarbon fuels without the need for dedicated combustion systems.

Mobile Fuels: Dynamotive’s research team has developed a two stage process to upgrade BioOil to mobile fuels. The process developed by Dr. Radlein is unique and has been replicated and been steadily improved over the past year. The process is described on our website under the BINGO heading. The process has significant advantages over other upgrading processes having higher end product yields from biomass than competing processes and is projected to be financially viable at significantly lower throughputs than competing technologies. Dynamotive continues its development program and has received support from leading energy firms in the analytical aspect of this product.

Char: Dynamotive has pioneered work on the development of agricultural applications for BioChar, Dynamotive’s CQuest™ BioChar is currently being used on a number of locations in the US and in Canada. Very positive results have been achieved to date with Blue Leaf Inc. (reports are available on our website) on the first year and second year crops. Further, the Company has supported and continues to support the US Department of Agriculture BioChar program, results of which are expected for first year crops at the end of 2009.

Financial / Compliance / Communications

Although the Company’s financial position in part due to the economic downturn been adversely affected, the Company has been able to continue operations through loans by Directors and Management and equity contributions by strategic partners.

The Company has taken aggressive steps to reduce non essential activities and costs, as a result of this, cost of operations have been reduced by approximately 50% on a year-to-year basis. Total cost of operations for Q4 2009 through Q3 2010 is expected to be $ 4.5 million +/- 10% including West Lorne plant operations. In the same period, the Company projects sales for West Lorne – product and technical demonstrations should reach $ 1.5 million, being a net contributor to offset Corporate expenses. Dynamotive projects that it can complete two licenses in the period further narrowing the need for outside financing. The Company today has a working capital deficit that it aims to cover through longer term loans by management and additional equity raises.

Debt management: The Company has $ 36 million in the carrying value of assets and total debt of $ 11.5 million (including provisions, contingent liabilities and loans by Directors and Management ) the Company also presented a plan for the re-allocation of assets including the potential sale of one of its plants. Through the potential sale of Guelph currently under negotiation, the Company believes it should be able to meet its creditor obligations.

Compliance / Communications

The Company is currently listed in the Nasdaq Bulletin Board and is reporting in British Columbia, the Company is up to date on all its filings and will continue its reporting duties as required by US SEC (foreign issuer) and BC SEC. The Company’s charter (available on our website) describes the duties and disclosure requirements by insiders and officers of the Company. Insider share trading reports can be accessed through SEDI: www.sedi.ca.

Communications: The Company will continue to timely reporting quarterly results and material events as they arise and proposes to have investor conference calls each quarter.  On Monday, September 21, 2009, the Company will hold its first shareholder/investor conference call at 11:00 AM Eastern; following dial-in instructions: from North America – 1.877.440.5804 and from International – 1.719.325.4765 using Passcode – 3546411. In addition, the Company will provide project and other updates on the Company’s website.

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. Photographs of the Guelph and West Lorne plants may be seen on the company’s website.

About BioOil® Biofuel

BioOil® is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog-precursor nitrogen oxides (‘NOx’) emissions than conventional oil as well as little or no sulfur oxide gases (‘SOx’), which are a prime cause of acid rain. BioOil® and BioOil Plus™ are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. BioOil® can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production.

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.

Dynamotive is currently producing CQuest Biochar at its plant in West Lorne and is distributing it to users in bulk and in drums for soil application. The Company has plans for development of a plant in the US where it has secured long term biomass supply contracts.

BlueLeaf Inc. 2009 Mid-Season Update

The purpose of this trial is to compare results for biochar treated soil versus non-treated, as well as to develop and experiment with methods of working with biochar, in a commercial farming operation. In this trial over 85 different parameters, for soil and plants, are verified on a monthly basis. A mid-season report advised on certain key parameters for the season to date, primarily as they relate to biomass. A complete report covering all parameters and statistics will be issued at the end of the 2009 growing season.

Dynamotive CQuest Biochar was applied to the trial plot at the beginning of the growing season in 2008. A relatively low application rate of 3,500 lbs/acre (3,924 kgs/hectare) was used. No additional biochar has been applied since then. All test parameters are measured in both the biochar test plot and an adjacent untreated control plot. In 2008 the crop grown was soya. In order to respect regular crop rotations used on this farm, a forage crop was planted for the 2009 season. This forage crop is a mixture of four plant species – oat, timothy, ryegrass and clover.

Significant Biomass Increase Noted
Two methods for verifying biomass were used, prior to harvesting the first forage cut:

32-row, 1 oat plant per row, diagonal pattern, random, complete plant biomass sampling;
Multiple 1 square meter, above-ground, all species, complete plant biomass sampling.
Total results of the 32-row complete oat plant harvest, for two sampling dates, indicate a total overall increase in biomass of 16% for the biochar plot versus the control. This increase for the biochar plot is broken down by plant component as follows:

Roots: +50%
Stems and leaves: +8%
Flowers: +17%
Total: +16%
Photos comparing the plants harvested for the first biomass trial for each of the biochar and control plots can be viewed at the bottom of this page.

The one square meter, above-ground, all species, complete biomass harvest trial supported these results, showing similarly higher biomass yields for the biochar plot.

Plant Germination
A mid-season verification of oat plant germination on multiple test sites for both the biochar and control plots indicate that the biochar trial plot had a significantly higher plant germination rates than the control.

Soil Foodweb Analysis – Root Mychorrizal Colonization
Mid-season results for root mycorrhizal colonization show the biochar plants as having higher colonization rates than the control.

Soil Total Phosphorus
Mid-season results show total soil phosphorus increasing month-to-month in the biochar plot, while decreasing month-to-month in the control plot.

Biochar Initiatives in the US

Biochar initiatives are gaining ground in the market with increased interest in its application. In the US, Dynamotive has provided CQuest Biochar to agricultural users, nurseries and greenhouses. Programs include USDA sponsored initiatives.

The USDA Agricultural Research Service is part of the research effort to determine the long-term costs, benefits and potential of biochar. ARS has substantial existing expertise in biochar research including a multi-location team that is conducting a coordinated series of chemical and physical analyses, studies, and field trials.

Dynamotive fully endorses the statement by US Secretary of Agriculture Tom Vilsack who in his address at the 2009 North American BioChar Conference stated: “Biochar has the potential to create opportunities for the agriculture and forestry sectors to mitigate the effects of a changing climate while creating jobs in rural communities and offering new income sources to landowners.”

“Landowners may eventually use biochar as a soil amendment to improve agricultural production and enhance carbon storage, with income potential from sale of carbon offsets. In states like Colorado where forests have been ravaged by bark beetles, dead timber might be used as a feedstock for biochar. The creation of new markets for forest products like biochar and bioenergy could significantly bolster sustainable forest management, forest restoration and rural jobs”.