Green Fuels to the World DynaMotive Energy Systems November 2002 Industry Partners Resource Transforms International L 110 Baffin Place, Unit 5, Waterloo, O Canada N2V 1Z7 Tel: (519) 884 4910; FAX: (519) 884 Government Partners Agreements concluded with: IRAP CIITT TPC NRCAN / CANMET Ethanol BC BC Ministry of Industry & Employment Overview NASDAQ, OTC.BB, quoted company (symbol DYMTF) World leading developer of technology used to convert Biomass into environmentally “friendly” energy (e.g. BioOil) BioOil is greenhouse gas neutral, it does not produce sulfur oxide (SOx) emissions and produces approximately half the nitrogen oxide (NOx) of comparable fossil fuels BioOil compatible with established technologies, replaces fossil fuels in gas turbines, boilers, and burners Technology (BioThermTM) proven and demonstrated to be reliable, replicable, commercially scaleable and supported by patents Development partners in place to commercialize BioTherm – contracts in place Market Drivers Distributed Generation BioMass Waste 2 billion tons residue pa 2.4 billion BOE Deregulation Energy Security Cost of Disposal & Opportunity Cost MARKET DRIVERS Energy Cost Primary – volatility Cost of Delivery National and International Incentives Environmental Kyoto Biomass to BioOil Opportunity/Problem/Solution Biomass Advantages Globally abundant Accessible Renewable Low value resource Above ground reserves Green House Gas Neutral Biomass Disadvantages Low energy density Low energy efficiency Inefficient to store and transport Boilers/steam turbines Solution - Convert biomass to liquid BioOil Increase energy density Storable/transportable Increase energy efficiency Gas turbines/diesel engines Compatible Existing fuel infrastructure Utilization Decoupled from production BioTherm Process Competitive Advantages CO2 / GHG neutral No SOx emissions Low NOx emissions Zero waste process Competitive Advantages Accessible and abundant renewable reserves Eliminate tipping costs Local production from biomass residue/waste Reliable technology, not weather dependant Value Chain Green Energy Diesels Gas Turbines Boilers Renewable Fuels Methanol Diesel Gasoline/Ethanol Non-Depleting Biomass Waste Waste Free BioOil Production Storable Transportable Clean Fuel Green Fuel and Chemical Markets Green Chemicals Resins/Fertilizers Ammonia Oxo-alcohols Green Fuels to the World Projects Commercialization Timelines PHASES 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 Proof Of Concept (Bench) 2 TPD Prototype 10 TPD Pilot Plant 100 TPD Demonstr’n 400TPD 1st Commerc’l 1994/97 1998/00 2000/01 2002/03 2003/04 COMPLETED COMPLETED DESIGN COMPLETED PLANNING 1994/97 2000 2001 2002 2003 2004 Production Model BioOil Electricity Steam Biomass BioTherm Process Char GHG Reductions Briquettes CO2 Credits 100 TPD Project Objectives Demonstrate scaled-up BioTherm technology Demonstrate BioOil fired turbine Integrate pyrolysis / power generation Enter green power market Technical White-wood (no bark) feedstock 2.5 MW BioOil-fired turbine Simple Cycle with cogeneration Steam sold to feedstock producer Orenda GT2500 BioOil Fuelled Turbine Green Power Generation Total Hydrocarbons (Emissions vs Engine Power) Green Power Generation SO2 (Emissions vs Engine Power) Green Power Generation % Particulates vs Engine Power 100 TPD Operating Objectives First commercial scale demonstration project Output of 75,000 BOE/yr energy equivalent (~225 BOE/day) IRR 10%+ (leveraging government assistance) 400TPD Project First full-scale commercial project Output of 303,000 BOE/yr energy equivalent (~900 BOE/day) Potential to power a 20 MW combined cycle generating station 400 TPD Project Economics Capital cost less than $ 20 million IRR 15%+ (without government assistance) Variable production cost less than US$ 10 per BOE Moving Forward Level Playing Field (Policies,Taxes, Legislation) Market Validation Programs Industry Association R&D Funding “Gap” Funding Green Fuels to the World Thank You