DynaMotive Announces Fast Track Strategy for Design and Construction

DynaMotive Announces Fast Track Strategy for Design and Construction of BioOil Energy Systems

    Flagship Commercial Scale Demonstration Project Launched

    VANCOUVER, July 18 - DynaMotive Energy Systems Corporation
(OTCBB: DYMTF) and its alliance partner Tecna SA jointly announced today that
they are fast tracking the design and construction of pyrolysis (BioOil)
plants.  The Company's objective is to develop a modular design that will
allow for a "building block approach" to expanding plant capacity. Plant
modules will be fabricated in shops and shipped to locations for final
assembly.  Plant construction is being considered for Canada, the U.S. and UK.

    DynaMotive also announced that it has formally launched the design of a
100 tonne per day (tpd) pyrolysis plant that will be the core of an integrated
biomass-to-energy system. The plant capacity represents a 400% increase in
capacity from its original plan. The 100 tpd plant is projected to produce
enough fuel to continuously fire a 2.5 Mwe turbine and be capable of providing
electricity to a small town (2,000 households).

    DynaMotive expects to demonstrate the commercial feasibility of its
BioOil fueled system in cooperation with Orenda Turbines, part of Magellan
Aerospace of Canada, and Border Biofuels Ltd. of the UK (BBL). The flagship
project is expected to generate 2.5 Mwe and be the first BioOil power
generation plant of its kind. DynaMotive is currently evaluating sites for the
commercial scale energy system.

    Through the increased capacity of the proposed plant and given the design
and construction approach taken, DynaMotive expects to substantially
accelerate market deployment of its technology, demonstrate the commercial
viability of its energy systems in 2002 and be in a position to service
multiple contract requirements by the first quarter of 2003, well ahead of its
original schedule.

    DynaMotive intends to replicate BioOil fueled systems in the UK where the
company has contracts to provide 69 Mwe with guaranteed power purchase
agreements under the UK government's Non Fossil Fuel Obligation. The Company
is evaluating power projects in remote-from-grid locations and in island and
other economies heavily reliant on fossil fuel imports, where it expects its
energy systems to be competitive against conventional power generation.
Additionally, DynaMotive is targeting such industries as forest, pulp and
paper and furniture manufacturing where the combination of residue disposal
costs and energy requirements are expected to make the company's systems
competitive.

    "This is a watershed development for DynaMotive", said President & CEO,
Andrew Kingston. "These developments mark a substantial advancement of our
commercial strategy that can be translated into significant financial,
strategic and commercial benefits. We have strived over the past two years to
be first to market with our technology. The launching of this project is the
culmination of our efforts. Energy is a growing concern world-wide and
therefore commercially validating BioOil as an alternative fuel for small
power generation should provide the company with a solid platform from which
to grow."

    Ricardo Altube, President & CEO and Jorge Kawaguchi, Director of Tecna SA
added: "We strongly support the conclusion reached by DynaMotive. We have
jointly conducted sustained runs on the company's 10 tpd plant and concluded
that the process is reliable and scalable. We consider that the technology is
now ready to be scaled up. We have worked closely with Warren Johnson and Jan
Barynin of DynaMotive and have consulted with Dr. Desmond Radlein of Resource
Transforms International on these steps. We believe this is a natural
progression and we look forward to completing the design work with DynaMotive
and commencing construction soon thereafter."