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Dynamotive and Marketech to Collaborate on Potential BioOil Plants in Taiwan and China
3 April 2008
Dynamotive Energy Systems Corp. has signed a cooperation agreement with Marketech International Corp. (MIC) to jointly review the commercial feasibility and, if warranted, to develop and construct the first two commercial BioOil plants in Taiwan. The companies also entered into a memorandum to explore further cooperation to develop BioOil projects in China.
Dynamotive Energy Systems Corporation provides a fast pyrolysis technology that uses medium temperatures and oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals. (Earlier post.)
BioOil and BioOil Plus are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. When combusted they produce substantially less NOx emissions than conventional oil as well as little or no SOx. BioOil can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production.
For Taiwan, the companies have agreed to work together on an exclusive basis to investigate the feasibility of jointly developing and constructing two BioOil plants initially. Financing for the plants will be provided for locally. Dynamotive as part of the development agreement may, at its option, capitalize technology license and engineering services for up to 10% of project ownership.
The first potential plant would process 100 metric dry tons per day of prepared distiller grain at a facility located in an island off the coast of Taiwan. BioOil produced will displace high cost diesel oil being imported currently by the host company. Feasibility studies for the development have been completed with favorable determination by the parties.
The second potential plant is for a key agricultural producer in the country. The plant would process 100 metric tons per day of prepared sugar cane and other residuals.
Current planning envisages that Dynamotive will deliver pyrolysis modules (to be fabricated in any of three locations: Canada, US or Argentina) and MIC as the local partner will deliver the balance of the plant, including feedstock preparation equipment, non-core equipment, construction and installation. Upon securing the projects, both parties agreed to enter into a further contract to define rights, obligations and warranties of each party for continued operations in this market.
Dynamotive and MIC also agreed to collaborate on the feasibility of developing one BioOil plant utilizing Dynamotive’s technology to convert agricultural residues into BioOil in the People’s Republic of China. The companies will work together on negotiating commercial agreements for engineering, equipment fabrication, equipment supply, and project investments. Based on the successful completion of the first project and the resulting goodwill, Dynamotive will further evaluate geographic opportunities within China to be developed jointly with MIC.
April 3, 2008 in Brief | Permalink | Comments (6) | TrackBack (0)
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Comments
BioOil is a big improvement on China's current fuel sources.
Posted by: John Taylor | Apr 3, 2008 11:53:24 AM
Way to go for China. There's huge potential in cellulosic biofuels based on fast-pyrolysis.
The Europeans are getting out of biofuels, while the Chinese are going in. I think the Euros will regret their move.
Posted by: Jonas | Apr 4, 2008 6:11:01 AM
In reality, China opens new coal burning plants every week. The soot from Chinese coal is melting northern sea ice and Canadian glaciers, and Chinese pollution is adding significantly to pollution loads in North America.
China is very big on "Potemkin Village" PR efforts. They build huge wind farms but neglect to connect them to the grid or do what it takes to make them work. This is likely more of the same.
If China does develop biomass, expect the dirtiest output and air/water/soil pollution of any biomass plant conceivable.
Posted by: Al Fin | Apr 4, 2008 10:03:53 AM
The initial action is taking place in Taiwan, with a long history of capitalism and entrepreneurship. Developing sustainable energy sources, as well as providing cleantech solutions for large, rapidly developing countries like China are everyone's responsibility. This is a positive step in the right direction.
Kent
www.ecounit.com
Posted by: Kent Ragen | Apr 4, 2008 5:14:55 PM
It sounds like they are working with companies in several countries to get an international market developed. In our global economy, it is more than a supplier/customer relationship. Many times countries want a share in the technology for future expansion.
Posted by: sjc | Apr 5, 2008 10:30:28 AM
companies who want to deal with China after fact their will pop up 20-50 different clone companies with your technology. It is almost amusing how stupid some companies just let their hard work go to nothing and hacks.
Good luck getting litigation against companies who steal your technology in China.
Posted by: JJ | Apr 26, 2008 7:25:23 PM
