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Dynamotive and IFP Energies Nouvelles extend MOU for upgrading bio-oils to mobile fuels

Dynamotive Energy Systems Corporation and IFP Energies Nouvelles (IFPEN) have extended their Memorandum of Understanding to cooperate in the field of pyrolysis oil upgrading with the aim to produce second generation biofuels, announced in June 2010 (earlier post) to July 2011. The extension of the current Memorandum of Understanding allows for completion of the work program agreed to in 2010.

The work program included economic, technical and intellectual property review. In addition, the parties expressed their interest to explore longer term co-operation leading to the potential commercialization of the process.

In the period to date, the Phase 1 economic evaluation was completed with positive conclusions in regards to its competitiveness to alternative biomass to transportation fuels routes. Phase 2 related to a technical feasibility study, based on Dr. Radlein and Dynamotive preliminary results at their research facility, is currently being performed by IFPEN and scheduled to be achieved by June 2011.

Dynamotive recognizes that the development of synthetic fuels requires specific expertise which IFPEN has in this field. The existing and extended memorandum established progress milestones through 2010 and 2011. Subject to satisfactory completion of the milestones, Dynamotive and IFPEN may enter into definitive agreements thereafter.

Pyrolysis oils present several challenges to overcome as they are typically high in water, solids and acids and do not meet the specifications of fossil fuels. Dynamotive R&D developed a process to upgrade pyrolysis oil that can potentially overcome these challenges and could provide an economically viable path to upgrade bio-oils to mobile fuels. Dynamotive and IFP entered into an initial Memorandum in 2010 to explore the process potential.

The process is patent pending.

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