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31 March 2006 - Canadian pyrolysis specialists DynaMotive Energy Systems Corporation announced this week that it has licensed a 200 tones per day (tpd) pyrolysis plant with an option for two further plants of similar size to Rika Ltd., a company that has extensive operations in Latvia and Ukraine. DynaMotive had entered previously into a territorial license agreement with Rika.
Under the Agreement, Rika has the option to order two further plants and will be guaranteed fabrication slots in 2007 if such option is exercised within 12 months of the signature date. The Company confirmed that it has received advance deposits for the license fee at the time of release under the terms of the license agreement.
Rika and DynaMotive disclosed that the plant will be located at one of Rika's farm operations in the Ukraine, which covers 8700 hectares of land. The farm would be capable of supporting the three plants envisaged under the licensing agreement signed.
Under terms previously agreed upon, Consensus Business Group was granted the right of first refusal for financing of biomass development and infrastructure in Europe.
Fabrication of the plant licensed will take place in British Columbia,
Canada and will be managed by DynaMotive and Tecna. The Company further
disclosed that it is in advanced negotiations with Mitsubishi Canada Ltd. To enhance fabrication capabilities and its international reach.
DynaMotive confirmed that the license fee for the 200 tpd plant is based on a capacity factor and further established future royalty fees based on production and market value of output. Market value is defined as the gross revenues from commercial sales of BioOil, char or other by-products including heat or power produced at the site using the application of DynaMotive's technology. The licensing agreement further envisages technical support activities and access to plant upgrades and future products developed from BioOil during the lifetime of the project.
DynaMotive's technology was successfully demonstrated at scale with further support of Sustainable Development Technology Canada. The West Lorne Facility the first BioOil cogeneration plant to be built has provided the demonstration platform for the commercialization of the technology.
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