DynaMotive Energy Systems

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Green Fuels to the World
DynaMotive Energy Systems November 2002
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Industry Partners

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Government Partners

• Agreements concluded with
• IRAP
• CIITT
• TPC
• NRCAN / CANMET
• Ethanol BC
• BC Ministry of Industry Employment

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Overview

• NASDAQ, OTC.BB, quoted company (symbol DYMTF)
• World leading developer of technology used to
  convert Biomass into environmentally friendly
  energy (e.g. BioOil)
• BioOil is greenhouse gas neutral, it does not
  produce sulfur oxide (SOx) emissions and produces
  approximately half the nitrogen oxide (NOx) of
  comparable fossil fuels
• BioOil compatible with established technologies,
  replaces fossil fuels in gas turbines, boilers,
  and burners
• Technology (BioThermTM) proven and demonstrated
  to be reliable, replicable, commercially
  scaleable and supported by patents
• Development partners in place to commercialize
  BioTherm contracts in place

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Market Drivers
BioMass Waste 2 billion tons residue pa 2.4
billion BOE
Distributed Generation
Cost of Disposal Opportunity Cost
Deregulation
MARKET DRIVERS
Energy Security
Energy Cost Primary volatility Cost of Delivery
National and International Incentives
Environmental Kyoto
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Biomass to BioOil Opportunity/Problem/Solution

• Biomass Advantages
• Globally abundant Low value resource
• Accessible Above ground reserves
• Renewable Green House Gas Neutral
• Biomass Disadvantages
• Low energy density Inefficient to store and
  transport
• Low energy efficiency Boilers/steam turbines
• Solution - Convert biomass to liquid BioOil
• Increase energy density Storable/transportable
• Increase energy efficiency Gas turbines/diesel
  engines
• Compatible Existing fuel infrastructure
• Utilization Decoupled from production

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BioTherm Process
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Competitive Advantages

• CO2 / GHG neutral
• No SOx emissions
• Low NOx emissions
• Zero waste process

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Competitive Advantages

• Accessible and abundant renewable reserves
• Eliminate tipping costs
• Local production from biomass residue/waste
• Reliable technology, not weather dependant

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Value Chain
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Green Fuels to the World
Projects
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Commercialization Timelines
PHASE 4 100 TPD Demonstrn 2002/03
DESIGN
PHASE 5 400TPD 1st Commercl
2003/04 PLANNING
1994/97
2000
2003
2004
2001
2002
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Production Model
Electricity
BioOil
Steam
BioTherm Process
Biomass
Char
Briquettes
GHG Reductions
CO2 Credits
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100 TPD Project Objectives

• Demonstrate scaled-up BioTherm technology
• Demonstrate BioOil fired turbine
• Integrate pyrolysis / power generation
• Enter green power market

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Technical

• White-wood (no bark) feedstock
• 2.5 MW BioOil-fired turbine
• Simple Cycle with cogeneration
• Steam sold to feedstock producer

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Orenda GT2500 BioOil Fuelled Turbine
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Green Power Generation
Total Hydrocarbons(Emissions vs Engine Power)
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Green Power Generation
SO2 (Emissions vs Engine Power)
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Green Power Generation
Particulates vs Engine Power
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100 TPD Operating Objectives

• First commercial scale demonstration project
• Output of 75,000 BOE/yr energy equivalent (225
  BOE/day)
• IRR 10 (leveraging government assistance)

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400TPD Project

• First full-scale commercial project
• Output of 303,000 BOE/yr energy equivalent (900
  BOE/day)
• Potential to power a 20 MW combined cycle
  generating station

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400 TPD Project Economics

• Capital cost less than 20 million
• IRR 15 (without government assistance)
• Variable production cost less than US 10 per BOE

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Moving Forward

• Level Playing Field (Policies,Taxes,
  Legislation)
• Market Validation Programs
• Industry Association
• RD Funding
• Gap Funding

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Green Fuels to the World
Thank You