DynaMotive Announces DTI Renewable Energy Grant For BioOil Consortium

    LONDON, UK, April 2 - DynaMotive Europe Limited, a wholly
owned subsidiary of DynaMotive Technologies Corporation (OTCBB: DYMTF) and
producer of clean burning BioOil fuels, today announced details of one of the
UK Government's largest ever grants to support the development of energy from
biomass in the UK. The pnds stlg 1.16 million/US $1.7 million grant from the
Department of Trade & Industry (DTI), which was announced by the UK Energy
Minister Peter Hain, will enable commercial production testing of an
integrated BioOil and electricity generating plant to take place in the UK.
The project is expected to cost in excess of pnds stlg 4.5 million/US $6.6
million  and will be funded equally by the partners.

    The DTI grant has been made to Border Biofuels and its consortium
partners DynaMotive Europe Limited and Orenda Aerospace Corporation to aid in
the development of an integrated feedstock preparation, BioOil production and
power generation plant in the UK. Border Biofuels plans to construct a 25-
tonne/day facility utilizing DynaMotive Europe's patented fast pyrolysis
technology to produce BioOil under a licensing agreement. The plant is
expected to have a capacity to produce 12,000 litres of BioOil a day - enough
to power a sawmill.

    When constructed, the plant will mark an important milestone in the
development of BioOil, becoming the largest commercial production facility of
its kind in the UK. Building on a successful long-term co-development program,
the integrated plant will demonstrate the commercial viability of larger scale
integrated BioOil and electricity production facilities using wood waste as a
fuel.

    Peter Hain, UK Energy Minister, said: "I attach high priority to research
and development of sustainable energy sources. Biomass is a key source of
renewable energy and will be very important if we are to achieve our target of
securing 10% of our electricity from renewable sources by 2010. I am delighted
to announce this offer of government support for this exciting and innovative
research project. The government is very committed to renewables and is
introducing an obligation on electricity suppliers to supply a proportion of
their electricity from renewable sources. It has also proposed a capital
grants programme of pnds stlg 89 million for biomass and offshore wind."

    BioOil is produced using a patented fast pyrolysis technology that
converts biomass into a liquid fuel. Unlike fossil fuels, BioOil is clean
burning, low in emissions, greenhouse gas neutral and can be produced
economically from renewable and non-depleting biomass such as timber, sawdust
and sugar cane bagasse. It can be used as an alternative to fossil fuels to
generate power and heat in boilers, gas turbines and diesel engines

    Dr. Adrian Bowles, Director of Border Biofuels, said: "We have long-term
plans for the production of BioOil as a real alternative to fossil fuels to
provide electricity in the UK. This testing and demonstration of an integrated
facility will allow us to refine production techniques, ensuring that BioOil
can be developed on this basis."

    Antony Robson, Managing Director of DynaMotive Europe, said: "We have
responded proactively to the European market where regulatory requirements
relating to 'green energy' combined with high fossil fuel prices and carbon
taxes make DynaMotive's BioOil a very attractive alternative fuel source. This
fact, coupled with DynaMotive's leadership position in pyrolysis technology,
provides a compelling case for a strong build-up of the technology in the
European market."

    Peter Billins, Chief Executive of British BioGen, said: "We are delighted
for this unequivocal statement of government support for bioenergy and our
exciting new technologies. This is clear evidence that the future of
sustainable energy lies in government and industry working in partnership to
deliver real and practical solutions today. BioOil will not end the era of
fossil fuels but it will become a significant addition to the energy mix of
the future."

    Commenting on the announcement Jeremy Kinsman, Canada's High Commissioner
to the UK, said: "I am delighted that leading-edge Canadian technology will be
part of this exciting project. Renewable energies are clearly a vital
component in meeting the challenges of sustainable development. The project
underlines how Canadian and UK firms are responding to this challenge, and how
great the opportunities are for technology-based collaboration between us."