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DynaMotive Announces Second Phase Program with Orenda Aerospace

13 September 2000

DynaMotive Technologies Announces Second Phase Program with Orenda Aerospace to Develop A Commercial Gas Turbine Package to Operate on DynaMotive's BioOil Fuel

    VANCOUVER, Sept. 12 /PRNewswire/ - DynaMotive Technologies Corporation
(OTCBB: DYMTF) today announced that Orenda Aerospace, a division of Magellan
Aerospace Corporation , has initiated a second phase program to
develop a commercial gas turbine package to operate on DynaMotive's BioOil
fuel following a successful first round of fuel tests earlier this year. The
program involves completion of turbine modifications required for Orenda's 2.5
MW (megawatt) GT2500 gas turbine to run on BioOil, coupled with a full scale
engine testing program in Canada and Europe to validate long-term commercial
operation of BioOil fueled gas turbines.
    "In our testing program earlier this year, DynaMotive's BioOil proved to
be the first pyrolysis oil capable of being used as a commercial fuel in our
gas turbines for power generation purposes," said Orenda Turbines General
Manger Frank Button. "The tests demonstrated that BioOil can both effectively
power a gas turbine engine and simultaneously reduce emissions compared to
traditional fossil fuels.
    "Based on the results of these initial tests we have now started our
development program to produce the technology to run our turbines successfully
on this fuel," Button said. "DynaMotive's current plant and their scale-up
plans have given us the confidence that they can supply fuel in the required
quantities. The engine modifications required are currently in progress and we
are in a position to consider a commercial installation."
    Commenting on Orenda's development program and full scale BioOil testing,
DynaMotive President & CEO Andrew Kingston said, "This is a significant
validation of the commercial use of DynaMotive's BioOil as a low emission,
alternative fuel for use in gas turbines for power generation. Construction of
our 10 tonne per day (tpd) BioOil demonstration plant is on track and we will
then be able to supply much larger quantities of BioOil for this program.
    "A packaged BioOil fueled gas turbine system will have strong commercial
and environmental appeal for power developers and electric utilities looking
for 'green power' options," said Kingston. "By integrating our BioOil
technology with Orenda's gas turbine engines, we will be able to convert low
value forest and agricultural waste into a storable, transportable, clean fuel
to generate electricity at higher efficiencies than traditional biomass power
generating systems. We are currently evaluating various commercial scenarios
for the integrated package which involve stacking multiple turbines in
combined cycle mode to produce 15 - 20 MW of electricity."
    DynaMotive and Orenda Aerospace signed a Cooperation Agreement in October
1999 to test DynaMotive's BioOil as a clean fuel to generate "green power" in
their gas turbines. Orenda is the first company in the world to successfully
demonstrate the feasibility of a turbine power generation system for industry
that is capable of operating entirely on liquid BioOil, a renewable fuel
produced from forest and agricultural waste. Once the test program is
completed, Orenda and DynaMotive plan to market BioOil-fuelled, "green power"
packages to the worldwide power generation market.
    Orenda's first round of BioOil tests were conducted at gas turbine
manufacturer SPE Mashproekt's facilities in the Ukraine. The combustion tests
validated fuel performance characteristics of DynaMotive's BioOil. The fuel
exhibited good combustion qualities and a very favourable emissions profile
including greatly reduced NOx and no SOx emissions.