DynaMotive Advances Development of Mobile Fuels from BioOil; Research Agreement with University of Western Ontario to Focus on Hydrogen and Synthetic Diesel Production Feasibility.

VANCOUVER, British Columbia -- DynaMotive Energy Systems Corporation (OTCBB:DYMTF), announced that it has signed an agreement to initiate research on the gasification of BioOil at the University of Western Ontario, Department of Chemical and Biochemical Engineering. The research project involves the development of a process for gasification of BioOil by catalytic steam reforming to produce syngas and/or hydrogen.

Syngas can be further converted into synthetic diesel, a renewable, greenhouse gas neutral fuel that can replace hydrocarbon diesel. With the escalating cost of fossil fuels and the dependence on crude oil as the primary source of energy for automobiles, it has become increasingly important to develop synthetic fuels.

Catalytic steam reforming of BioOil has already been demonstrated at the bench-scale. The objective of the research program will be to develop it into a practical process for BioOil gasification. The project will be directed by Professors Franco Berruti and Cedric Briens and Dr. Desmond Radlein, all of whom have many years of experience in biomass chemistry, catalysis and relevant reaction engineering. Dr Radlein also serves as a director of DynaMotive.

In May 2004, DynaMotive announced the formation of a jointly funded research and development group with Dr. Desmond Radlein of Resource Transform International (RTI). The focus of this group is to invest directly into R&D initiatives and coordinate research activities. The research at the University of Western Ontario is one such initiative and demonstrates that DynaMotive is committed to continued research programs to further its technology.

Speaking about the research initiative, Dr. Desmond Radlein said: "The success of this project would pave the way for efficient production of high quality transportation grade fuels from biomass with BioOil as the key intermediate."

The University will act as an independent contractor on this research program, which will commence in July 2005 and will last up to 18 months. Any technology developed from the program will belong to the University with DynaMotive having the option to obtain a non-exclusive license to it.

Recently, DynaMotive announced that it would ship BioOil to the FZK research institute in Freiberg Germany (see press release "DynaMotive to Ship BioOil for Development of Advanced Fuels", June 15th 2005). The research done at FZK is also working towards converting BioOil to syngas.

University of Western Ontario

The University of Western Ontario is one of Canada's premier research institutions and has been consistently ranked as one of the top universities in the country. Research is an integral part of the University's mission and external support for research projects totals nearly $190 million per year. Western is one of Canada's oldest universities and has 1,164 faculty members and almost 29,000 undergraduate and graduate students.

About DynaMotive

DynaMotive is an energy systems company focused on the development of innovative energy solutions based on its patented fast pyrolysis system. Through the application of fast pyrolysis, DynaMotive unlocks the natural energy found in the world's abundant organic resources traditionally discarded by the agricultural and forest industries. DynaMotive's technology economically converts biomass into a renewable, environmentally friendly fuel. DynaMotive has successfully demonstrated conversion of these residues into fuel known as BioOil, as well as char.

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