Dynamotive secures feedstock supply for planned bio-oil plant

By Lisa Gibson
Web news posted April 29, 2009, at 1:51 p.m. CDT

Dynamotive USA Inc. secured a supply of 220,000 tons per year of sawdust from Southeast timber producer Springhill Land and Timber for a proposed bio-oil plant in southern Arkansas. That's more than enough to operate the facility, according to Delphin Thebaud, a Dynamotive representative, as it will require 200 tons per day, operating about 330 days per year.

The contract secures the feedstock supply for an initial term of 10 years with pricing linked to energy prices in the region, according to Dynamotive USA, a subsidiary of Dynamotive Energy Systems Corp. The company is working with El Dorado Chamber of Commerce on development of the plant, it said. Dynamotive Energy uses fast pyrolysis technology to convert waste celllulosic biomass into bio-oil for power and heat generation. Bio-oil can be further converted into liquid transportation fuels and chemicals.

No specific site has been named for the $40 million plant, but the state of Arkansas was chosen because of its strong alternative energy policies, according to the company. A final selection should be made by the end of the year and construction should begin in 2010. The plant will incorporate Dynamotive's new technology on upgrading of bio-oil from lignocellulosic biomass pyrolysis, scheduled to be deployed in 2011, according to Dynamotive. The cost of the upgrade module is $7million, included in the $40 million figure.