"Grow Your Own".. DynaMotive and Intracom to Develop Fuel from Sugar Cane

VANCOUVER, Nov. 13 - DynaMotive Energy Systems Corporation (OTCBB: DYMTF - news) announced today that it has entered into a Memorandum of Understanding (MOU) with Intracom, an energy and commodity trader in Brazil. Subject to completion of a comprehensive agreement, Intracom will be established as DynaMotive's agent for the development of commercial projects in that country. DynaMotive's strategic partners in Brazil - Cosan Bom Jesus (Cosan), EcoSecurities Ltd. (EcoSecurities) and Tecna S.A. (Tecna) will work jointly with Intracom in the development of projects.

Under the terms of the MOU, the parties have agreed to enter into a comprehensive agency agreement within 90 days of signing. Intracom is envisaged to seek commercial project opportunities, seek the necessary financial resources for the development of this key market and provide DynaMotive with business support services, including but not limited to, market research, commercial and financial information relating to potential projects.

Intracom has a well-established track record and considerable experience in trading, logistics, financing and project development in Brazil, making it an ideal partner in the development of this key market. Internationally, its association with major international storage, shipping and commodity and energy trading companies puts Intracom in a unique position to develop export opportunities for BioOil produced in Brazil.

DynaMotive and Cosan - one of the largest sugar and ethanol producers in Brazil - have, over the past two years, worked jointly to validate the production of BioOil from bagasse. Bagasse - residue from sugar cane - is an ideal, abundant world-wide (some 500 million tonnes are produced annually) resource to convert to BioOil with consistent quality and yields in excess of 65% by weight.

Intracom and Cosan will be supported by DynaMotive's strategic partners, EcoSecurities and Tecna. EcoSecurities would act as environmental and financial advisor while Tecna would provide engineering services.

Rodolfo Guido, Director of International Marketing and Trading of DynaMotive said: ``DynaMotive and Cosan have worked jointly to establish the potential of sugar cane residue as the next source of oil. Converting vast reserves of bagasse into BioOil requires the convergence of various disciplines. Intracom's energy and commodity trading expertise coupled with that of EcoSecurities in environmental matters and Tecna's engineering capabilities put DynaMotive in a strong position to penetrate this key market. We look forward to working together with our partners and expect to establish our first commercial project in Latin America in 2002.''

Carlos H. Herz, Executive Director of Intracom said: ``We can see strong synergy between DynaMotive's technology and Brazil's enormous quantities of raw material, the country's priority for the search of alternative energy sources and the great political appeal of offering a product / technology with minimum environmental impacts''.

Jorge Coury Sobrinho, Executive Director of Cosan said: ``We see DynaMotive's technology to be very promising for a country like Brazil, where there is a huge availability of biomass residues. Following the steps we took on developing the alcohol program for renewable energy fuels, we want now to work with DynaMotive and the other partners developing a new market for renewable fuels from biomass. Due to the current Brazilian energy situation, we foresee a clear opportunity for power generation and we also expect to enter the transportation market by replacing diesel with BioOil in the near future. Cosan is fully committed to this project and will provide all the necessary efforts and resources to make it a real success, and we have no doubts that it will lead to other similar projects in the region very shortly thereafter''.

DynaMotive Energy Systems Corporation is an energy systems company that is a world leader in the development of technology to produce competitively priced BioOil liquid fuels from renewable and non-depleting biomass. As a clean fuel to replace natural gas, diesel and other fossil fuels to produce power and heat in industrial boilers, gas turbines and diesel engines, BioOil presents significant market opportunities that DynaMotive intends to exploit commercially. The Company and its partners are also engaged in research and development on a range of derivative products that, if successful, could potentially further enhance the market and value for BioOil as an alternative fuel and product source.