Dynamotive Energy Systems Corporation announced today that China’s National Development and Reform Commission (NDRC) has come out in favor of the introduction of Dynamotive’s BioOil technology to reduce the nation’s growing oil imports. Current levels of oil import represent over 40% of the country's annual total crude oil consumption. To put that in perspective in 2004 China's oil consumption reached 47.8 million tons, and continues to increase.

The NDRC, a management agency under the State Council which studies and formulates policies for economic and social development, recommended the use of Dynamotive’s BioOil technology as a means to increasing energy security and independence, following a year long review. 

NDRC’s Energy Research Institute Deputy Director, Professor Dai Yan De, said; “NDRC does not usually contact enterprises directly. However, with regards to the development of new energy in the post petroleum era, apart from hydroelectric and wind power, biomass is one of the major alternative resources. In spite of keen competition worldwide, Dynamotive is the only one that has achieved commercial scale in the pyrolysis industry and prompted this unusual step to be taken.”

The study was carried out by ERI and included a visit to Dynamotive’s plant in West Lorne and headquarters earlier in the year. ERI and Dynamotive co-operated in the study, Dynamotive contributing partially through allocation of internal resources and partial costs related to the review (approximately $100,000).

The report was based on extensive consideration of Dynamotive’s fast pyrolysis technology which turns commonly available agricultural and forest residues into an industrial fuel (BioOil) and is a pivotal part of Dynamotive’s entry strategy into this market.

Dynamotive further disclosed that it is now part of a consortium that includes Mitsubishi Canada Ltd., Mitsubishi Corporation China Commerce Co., JNE Consulting and Hangzhou Steam Turbine Co. Ltd. The consortium is currently negotiating a teaming agreement. The consortium will enable a faster rollout of our BioOil technology into China. This year Mitsubishi and Dynamotive have spent significant time and resources to establish potential fabrication partnerships in Japan for BioOil technology and in China for steam generation compatible equipment.

The report concluded that: “There is strong potential for using (Dynamotive’s) BioOil to substitute fuel oil. Analysis shows that if one-third of China’s agricultural and forestry waste could be used to produce BioOil, 15 million tons of fuel oil could be substituted, and half of imported fuel oil by China could be theoretically displaced.”