Green Fuels to the World

DynaMotive Energy Systems November 2002

Industry Partners

Resource Transforms International L 110 Baffin Place, Unit 5, Waterloo Canada N2V 1Z7 Tel: (519) 884 4910; FAX: (519)

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 MARKET DRIVERS

Cost of Disposal & Opportunity Cost Energy Cost

Primary volatility Cost of Delivery

Energy Security

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 Demonstrn

400TPD 1st Commercl

1994/97

1998/00

2000/01

2002/03
2003/04

COMPLETED

COMPLETED

COMPLETED

DESIGN PLANNING

1994/97

2000

2001

2002

2003

2004

Production Model
BioOil Electricity Steam

Biomass

BioTherm Process

Char

Briquettes

GHG Reductions

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