March 1, 2011
BY Erin Krueger
British Columbia-based Dynamotive Energy Systems Corp. recently announced it has agreed to non-binding heads of terms with Australia-based Renewable Oil Corp. to establish each entity’s directions for a joint approach to develop a biofuels business in Australia. According to information released by Dynamotive, the companies have agreed to negotiate exclusively with each other on final terms for the joint approach. ROC, through one of its directors, has made a monetary advance to secure an exclusivity period for negotiations and the extension of its current license in Australia. The exclusivity period currently expires March 31. The two companies will now work to finalize the details of the joint venture and a business plan for the development of both demonstration-scale and commercial-scale plants in Australia.
Under the terms of the agreement, a joint venture would be established by the two companies. Dynamotive would contribute its expertise and 50 percent of the license for development and construction of pyrolysis units. The company would also provide the joint venture with access to its facilities and partnerships. In turn, ROC would agree to acquire the balance of the license from Dynamotive, for which it would make payments over an undisclosed period of time. According to Dynamotive, the joint venture would also benefit from a license to build and operate a pilot pyrolysis and upgrading unit. License terms have yet to be established. However, Dynamotive notes it would include a license fee and royalties per plant.
While Biorefining Magazine was unable to reach a representative at Dynamotive for further comment, information released by the company states that the agreement will build on a range of activities the two companies have collaborated on over the past several years. This includes progress made regarding the upgrade of pyrolysis oil into transportation fuels and the investigation of pyrolysis oil as a fuel for use in large diesel engines, marine and power applications. According to Dynamotive, ROC has also done work to shortlist potential sites in Australia that offer stable and competitively priced woody biomass feedstock. This includes working with a national research organization to develop a farm forestry program that could potentially provide biomass for several commercial facilities.
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Information posted to Dynamotive’s website explains the company has developed two technologies: ‘fast pyrolysis’ and ‘biomass into gasoil’ (BINGO). The fast pyrolysis process converts cellulosic biomass into bio-oil and biochar, while BINGO refines the bio-oil into mobile fuel quality oil. According to Dynamotive, it has developed three fast pyrolysis facilities to date; a 15 ton-per-day pilot plant, a 130 ton-per-day facility in West Lorne, Ontario and a 200 ton-per-day plant in Guelph, Ontario.
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