Canfor and DynaMotive Establish Alliance To Develop Commercial BioOil Applications for the Forest Industry

Mar 08, 2001, 00:00 ET from DynaMotive Technologies Corporation

    VANCOUVER, March 8 /PRNewswire/ - DynaMotive Technologies Corporation
 (OTCBB: DYMTF) and Canadian Forest Products Ltd. (CFP:TSE) have signed a
 Memorandum of Understanding to develop commercial applications for BioOil in
 the forest industry. The announcement was made at the official opening of
 DynaMotive's new 10 tonne per day BioOil pilot plant in Vancouver, BC, Canada.
     "This partnership is a significant milestone in our commercialization
 program," said Andrew Kingston, DynaMotive President & CEO. "Canfor is one of
 the largest and most respected forest product companies in North America and
 we are delighted to be taking this first step to formalize the relationship.
 This MOU is the culmination of many months of work between DynaMotive and
 Canfor management to understand the value proposition that our BioOil
 technology provides within the forest industry. We believe that there is the
 potential to create value for both companies."
     Canfor's President and CEO David Emerson said, "Canfor is very pleased to
 announce this alliance with DynaMotive, whose BioOil technology has the
 potential to convert our sawmill wood residue into clean burning fuel. This
 technology also has the potential to provide Canfor with positive
 environmental benefits by helping to eliminate beehive burners currently being
 used to incinerate the material. In addition, should it prove feasible to use
 BioOil to replace natural gas in our pulp mill lime kilns and sawmill lumber
 dry kilns, Canfor could increase its energy self-sufficiency and further
 reduce its greenhouse gas emissions."
     "The MOU establishes a framework for collaboration through several stages
 of development," said Jonathan Rhone, DynaMotive's Chief Operating Officer
 (Canada). "Initially, Canfor will provide prepared feedstock for the operation
 of DynaMotive's 10 tonne per day pilot plant and work with DynaMotive to
 validate BioOil fuel applications in sawmills and pulp mills. The companies
 have also established the principles for developing a 25 - 50 tonne per day
 BioOil demonstration project and for commercial BioOil projects including
 feedstock supply and fuel purchase agreements."
     Canada's forest industry produces approximately 18 million tonnes of
 sawmill residues per year, of which approximately 6 million tonnes is
 currently incinerated or landfilled at a cost to the industry. Converting
 surplus wood residue into BioOil could help the industry create value and
 provide a non-depleting, renewable source of energy for use in forest
 operations.
 
     Canfor is an integrated forest company based in Vancouver, Canada. With
 sales of over $2.2 billion in 2000, Canfor is the largest producer of softwood
 lumber and market pulp in Canada and one of the largest in North America.
 Canfor employs over 5,700 people in 13 sawmills, 2 pulp mills, one specialty
 paper mill and other operations in BC, Alberta and Washington State.
 
     DynaMotive is an energy systems company based in Vancouver, Canada. It is
 developing a proprietary "fast pyrolysis" technology that converts renewable,
 forest and agricultural wastes such as bark, sawdust and sugar cane bagasse
 into a liquid BioOil fuel. BioOil is clean burning, low in emissions and
 greenhouse gas neutral. BioOil can be used to replace natural gas, diesel and
 other fossil fuels to produce power and heat in industrial boilers, kilns, gas
 turbines and diesel engines.
 
     Forward Looking Statement
     Statements in this news release concerning the company's business outlook
 or future economic performance; anticipated profitability, revenues, expenses,
 or other financial items; and statements concerning assumptions made or
 expectations as to any future events, conditions, performance or other
 matters, are "forward-looking statements" as that term is defined under the
 Federal Securities Laws.
     Forward-looking statements are subject to risks, uncertainties and other
 factors which could cause actual results to differ materially from those
 stored in such statements. Such risks, uncertainties and factors include, but
 are not limited to, changes and delays in product development plans and
 schedules, customer acceptance of new products, changes in pricing or other
 actions by competitors, patents owned by the Company and its competitors, and
 general economic conditions, as well as other risks detailed in the Company's
 filings with the Securities and Exchange Commission.
 
 

SOURCE DynaMotive Technologies Corporation
    VANCOUVER, March 8 /PRNewswire/ - DynaMotive Technologies Corporation
 (OTCBB: DYMTF) and Canadian Forest Products Ltd. (CFP:TSE) have signed a
 Memorandum of Understanding to develop commercial applications for BioOil in
 the forest industry. The announcement was made at the official opening of
 DynaMotive's new 10 tonne per day BioOil pilot plant in Vancouver, BC, Canada.
     "This partnership is a significant milestone in our commercialization
 program," said Andrew Kingston, DynaMotive President & CEO. "Canfor is one of
 the largest and most respected forest product companies in North America and
 we are delighted to be taking this first step to formalize the relationship.
 This MOU is the culmination of many months of work between DynaMotive and
 Canfor management to understand the value proposition that our BioOil
 technology provides within the forest industry. We believe that there is the
 potential to create value for both companies."
     Canfor's President and CEO David Emerson said, "Canfor is very pleased to
 announce this alliance with DynaMotive, whose BioOil technology has the
 potential to convert our sawmill wood residue into clean burning fuel. This
 technology also has the potential to provide Canfor with positive
 environmental benefits by helping to eliminate beehive burners currently being
 used to incinerate the material. In addition, should it prove feasible to use
 BioOil to replace natural gas in our pulp mill lime kilns and sawmill lumber
 dry kilns, Canfor could increase its energy self-sufficiency and further
 reduce its greenhouse gas emissions."
     "The MOU establishes a framework for collaboration through several stages
 of development," said Jonathan Rhone, DynaMotive's Chief Operating Officer
 (Canada). "Initially, Canfor will provide prepared feedstock for the operation
 of DynaMotive's 10 tonne per day pilot plant and work with DynaMotive to
 validate BioOil fuel applications in sawmills and pulp mills. The companies
 have also established the principles for developing a 25 - 50 tonne per day
 BioOil demonstration project and for commercial BioOil projects including
 feedstock supply and fuel purchase agreements."
     Canada's forest industry produces approximately 18 million tonnes of
 sawmill residues per year, of which approximately 6 million tonnes is
 currently incinerated or landfilled at a cost to the industry. Converting
 surplus wood residue into BioOil could help the industry create value and
 provide a non-depleting, renewable source of energy for use in forest
 operations.
 
     Canfor is an integrated forest company based in Vancouver, Canada. With
 sales of over $2.2 billion in 2000, Canfor is the largest producer of softwood
 lumber and market pulp in Canada and one of the largest in North America.
 Canfor employs over 5,700 people in 13 sawmills, 2 pulp mills, one specialty
 paper mill and other operations in BC, Alberta and Washington State.
 
     DynaMotive is an energy systems company based in Vancouver, Canada. It is
 developing a proprietary "fast pyrolysis" technology that converts renewable,
 forest and agricultural wastes such as bark, sawdust and sugar cane bagasse
 into a liquid BioOil fuel. BioOil is clean burning, low in emissions and
 greenhouse gas neutral. BioOil can be used to replace natural gas, diesel and
 other fossil fuels to produce power and heat in industrial boilers, kilns, gas
 turbines and diesel engines.
 
     Forward Looking Statement
     Statements in this news release concerning the company's business outlook
 or future economic performance; anticipated profitability, revenues, expenses,
 or other financial items; and statements concerning assumptions made or
 expectations as to any future events, conditions, performance or other
 matters, are "forward-looking statements" as that term is defined under the
 Federal Securities Laws.
     Forward-looking statements are subject to risks, uncertainties and other
 factors which could cause actual results to differ materially from those
 stored in such statements. Such risks, uncertainties and factors include, but
 are not limited to, changes and delays in product development plans and
 schedules, customer acceptance of new products, changes in pricing or other
 actions by competitors, patents owned by the Company and its competitors, and
 general economic conditions, as well as other risks detailed in the Company's
 filings with the Securities and Exchange Commission.
 
 SOURCE DynaMotive Technologies Corporation