DynaMotive Completes BioOil Test Burn at BC Mill

Aug. 15, 2006 - DynaMotive Energy Systems Corp. (OTCBB:DYMTF) announced today the success of an industrial scale test burn of the Company's BioOil as a replacement for natural gas in the lime kiln of a pulp and paper mill. The testing was conducted in the Northern Interior of British Columbia at one of Canada's largest integrated forest products companies.

DynaMotive said the successful combustion testing is another important step toward commercializing BioOil, a renewable liquid fuel produced from biomass, as an alternative to natural gas or fuel oil in industrial settings.

During the testing, over 20 tons of BioOil were fired at a rate of approximately 2 tons per hour, utilizing existing equipment without any mechanical modifications. DynaMotive's BioOil met all of the target test parameters, as set out by the host company, including maintaining the kiln temperature and lime yield while demonstrating complete and stable combustion of the fuel.

The BioOil for the test was produced at DynaMotive's West Lorne plant in Ontario and shipped across Canada, further demonstrating the versatility of the fuel. DynaMotive conducted successful prior pilot-scale lime kiln testing of its BioOil at the University of British Columbia in March, 2004.

Andrew Kingston, DynaMotive's President and Chief Executive Officer commented: "With the commercial availability and viability of DynaMotive's technology now established and multiple projects being pursued, this latest large-scale test further validates that BioOil use can offer the pulp and paper industry a cost competitive, renewable alternative to natural gas and other fossil fuels."

In North America alone, lime kilns consume approximately 15 million GigaJoules or 2.45 million barrels of oil equivalent of fossil fuels every year.

The company is currently evaluating a number of project development opportunities for local deployment of its plant modules currently in fabrication, which have a processing capacity of 200 dry tons per day of biomass feedstock.

SOURCE: DynaMotive Energy Systems Corporation

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