March 5, 2007

Dynamotive to provide renewable power under Ontario's Standard Offer Program

Dynamotive Energy Systems, in Vancouver, has signed a contract with the Ontario Power Authority (OPA) to supply renewable power under the province's Standard Offer Program (SOP). Under the terms of the contract, Dynamotive will deliver electricity to the grid from its 2.5-megawatt (MW) cogeneration facility at West Lorne, Ontario, selling renewable power to the grid at 11 cents per kilowatt hour (kWh) or more for up to 20 years.

Fuel for the plant is derived from wood residues from Erie Flooring and Wood Products. These residues are converted to BioOil using Dynamotive's patented fast pyrolysis process. The plant is the first commercial facility of its kind in the world.

"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 Dynamotive president and CEO Andrew Kingston.

BioOil produces lower levels of smog-precursor NOX emissions than conventional oil as well as little or no SOX. BioOil and Intermediate BioOil are price-competitive replacements for #2 and #6 heating oils widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met the stringent environmental criteria for industrial fuels set by Environment Canada's Environmental Choice program.

More information is available on Dynamotive's Web site, www.dynamotive.com.

The OPA's Standard Offer Program, launched in 2004, and is expected to add about 1,000 MW over the next ten years. It enables operators of small renewable energy generating facilities to supply power to the Ontario grid through their local electricity distributors and to be paid a fair and stable price for the power they provide.

More information is available on the OPA Web site, www.powerauthority.on.ca.

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