DynaMotive Energy Systems Corporation (OTCBB:DYMTF) has signed its first third party commercial plant license agreement.
The agreement, with Megacity Recycling, Inc., provides for a 200 tpd plant to be located in Ontario, Canada. This license follows the completion of feasibility studies and the memorandum of understanding between the Companies executed and announced in March of this year. The location for the licensed plant will be announced after completion of the final evaluation of two potential sites in Ontario by the parties in the near future.
The licensing of the first commercial plant by DynaMotive is another key milestone in the Company’s path to market; it was reached after more than two years of development efforts and cooperation with Megacity Recycling. During the development stage, Megacity and DynaMotive reached an in-depth understanding of the large market potential that could be realized through the development of industrial fuels from biomass.
DynaMotive confirmed that the license fee for the 200 tpd plant is based on a capacity factor and further established future royalty fees based on production and market value of output. Market value is defined as the gross revenues from commercial sales of BioOil, char or other by-products including heat or power produced at the site using the application of DynaMotive’s technology. The licensing agreement further envisages technical support activities and access to plant upgrades and future products developed from BioOil during the lifetime of the project.
DynaMotive and Megacity also confirmed that they are working on the development of future biomass power and BioOil production projects and that Megacity has acquired an option for a further 200 tonnes per day plant to be developed in 2006. The intent of the parties is to conduct a series of project studies that will:
– develop a portfolio of green energy projects;
– evaluate opportunities for implementing fast pyrolysis BioOil plants;
– investigate the potential for fast pyrolysis to provide green power generation and investment opportunities
DynaMotive’s technology has the support of Technology Partnership Canada, a key instrument of Canada’s Innovation Strategy. TPC makes strategic, conditionally repayable investments in great Canadian ideas, which are the currency for success in the 21st century. TPC’s critical and timely investments in research and development promote innovation, commercialization, sustainable development and increased private sector investment.
DynaMotive is an energy systems company focused on the development of innovative energy solutions based on its patented fast pyrolysis system. Through the application of fast pyrolysis, DynaMotive unlocks the natural energy found in the world’s abundant organic resources traditionally discarded by the agricultural and forest industries. DynaMotive’s technology economically converts biomass into a renewable, environmentally friendly fuel. DynaMotive has successfully demonstrated conversion of these residues into fuel known as BioOil, as well as char.
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