DynaMotive Technologies Corp. announces new technology to combat global climate change.

GENEVA, Switzerland--(BUSINESS WIRE)--July 19, 1996--DynaMotive Technologies Corp. (NASDAQ:DYMTF) Friday announced one of several biomass-based solutions to aid in tackling the environmental issues being addressed by the United Nations Climate Change Convention, held in Geneva this week.

The two-week-long conference examined critical issues that affect industry and our environment, including global warming, ozone destruction and acid rain. The objective is to reduce air pollutants aggressively without incurring enormous capital outlays and severely impacting economies.

DynaMotive's anti-pollution program calls in part for the infusion of clean-burning additives to energy generation facilities which burn fossil fuels. Using what it calls its Biomass Refinery, the company produces two proprietary fuel additives, BioLime and Noxolene, which are derived from organic waste such as municipal solid waste, sewage sludge, or straw.

The patented technology utilized in producing the fuel additives is known as Biotherm. This process involves flash pyrolysis to produce Bio-Oil, an organic liquid feedstock that is also a clean-burning fuel.

Delegates from the Climate Change Convention's approximately 150 signatory nations have appealed to the established and emerging industrial powers to reduce greenhouse-gas emissions. These gases, particularly carbon dioxide (CO2), are released when fossil fuels, such as coal and oil, are burned.

Greenhouse gases have been blamed for potentially disastrous global warming and for associated effects such as disease, food shortages, severe weather, and increases in heat-related deaths.

The United Nations 1992 Earth Summit in Rio de Janeiro committed the world's major industrial powers to halting the increase in greenhouse-gas emissions, including CO2 and methane. That meeting called for a rollback to 1990 emission levels by the year 2000.

Global industry, however, has not progressed toward this goal. The World Energy Council (WEC) in London recently released information suggesting that between 1990 and 1995, world CO2 emissions increased by as much as 12 percent. The WEC has called for immediate action to counter this increase.

Reinhold Roth, president and chief executive officer of DynaMotive Technologies Corp., indicated that the company has been working on the Biomass Refinery for some time, saying: "Our overall aim is to give the world a way to reduce its fossil-fuel consumption, without curtailing world energy output and crippling the global economy.

"By adopting the advanced technology of the Biomass Refinery, the world can continue to burn fossil fuels in the intermediate term -- with the difference that fossil fuels can now burn nearly as cleanly as natural gas."

When reacted with simple materials such as lime, water and ammonia, Roth explained, Bio-Oil creates fuel additives with a unique ability to reduce all the most important greenhouse gases at once. "This is a technology that can buy the world some badly needed time," he said.

Currently, Roth said, burning one ton of coal typically produces 80 pounds of sulfur dioxide. However, DynaMotive's patented fuel additive BioLime cuts this to less than 8 pounds, a reduction of more than 90 percent. BioLime also cuts emissions of nitrogen oxides (NOx) by up to 53 percent.

Noxolene, another biomass-derived fuel additive, boosts nitrogen-oxide destruction up to 80 percent. "These figures have been verified by independent tests at Pennsylvania State University and at other major combustion research centers. Tests are ongoing," Roth said.

The biggest contributor to global warming, Roth noted, is CO2. "Typically, one ton of coal produces two tons of carbon dioxide when burned," he said. "Substituting DynaMotive biomass-derived products for 10 percent of the coal reduces CO2 emissions by 400 pounds per ton of coal. This is by itself enough to roll back world CO2 emissions to near-1990 levels without closing a single coal-fired facility," Roth said.

Roth explained that any CO2 emitted by biomass derivatives, including BioLime and Noxolene, is not considered as contributing to global warning. This is because the biomass returns to the air only the CO2 that it extracted when it formed. Roth also noted that burning waste organic matter harnesses the methane that would otherwise have escaped into the air as greenhouse gas.

All biomass emits methane and CO2 when it decays. The Biomass Refinery harnesses this natural process, burning the methane to generate energy while displacing fossil-fuel CO2. In addition, the Biomass Refinery avoids the air emissions created by waste incineration, and reduces both the cost and the undesirable environmental effects of landfilling.

"The Biomass Refinery is a revolutionary process that adds value to waste while holistically cleansing the environment, protecting the ozone layer, and controlling global warming," Roth said. "All this is done not by eliminating fossil fuels, but by using them more cleanly and effectively." As an added bonus, Roth said, active carbon -- the byproduct of the Biotherm process -- also benefits the environment by serving as a filtration agent.

Roth explained that Biomass Refinery products can replace fossil fuels in applications such as coal-fired electric generating stations, waste incinerators, and diesel engines. "Bio-Oil is already well advanced as an alternative fuel for diesel engines," Roth said. He added that DynaMotive is rapidly scaling up its Biomass Refinery, and in 1997 will establish major new installations in Sweden, Denmark and the United Kingdom.

DynaMotive is an advanced technology firm that helps solve environmental problems while improving industrial efficiency. In addition to the Biomass Refinery, other core technologies have been commercialized, including motion-control systems for automotive assembly and other systems that clean iron, steel and other metals to near-surgical levels without the use of acid.

DynaMotive is based in Vancouver, Canada, with U.S. offices in Waltham, Mass. A European office will shortly be opened in London. The company lists on NASDAQ, the North American Securities Dealers' Automated Quotation system, under the symbol DYMTF. DynaMotive also expects to be the first company listed on EASDAQ, the new automated European stock exchange, as soon as registration formalities have been completed.

The company's e-mail address is [e-mail] and Internet home page is http://www.dynamotive.com/dmcc/.

CONTACT: DynaMotive Technologies Corp., Vancouver

Bayne Boyes, 604/222-5590

or

Coffin-KCSA, Los Angeles

Steven Johnson, 818/789-0100