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Dynamotive: Adapting to a changing market
Another promising bio-oil producer is Vancouver’s Dynamotive Energy. Its inventive approach was recognized this summer when it received the 2009 Intergovernmental Renewable Energy Organization Innovation Award. Using leftover wood like construction waste, Dynamotive has been turning wood to bio-oil for years at its 130 tonnes per day West Lorne plant, fueling a 2.5 MW turbine to make power for the Ontario grid, and selling the oil to a U.S. customer for the heat market.
The economic downturn sparked a fresh approach from management. Instead of playing project developer, Dynamotive too, is seeking solid partners. In a conference call discussing the company’s fourth quarter results for 2009, CEO Andrew Kingston said the market is taking a “significant departure,” now large energy and oil companies want to develop projects themselves, “so it’s a question of a decision of whether the technology meets their requirements, rather than us having to raise the capital and put the project together.”
Dynamotive has a number of potential plants and deals ready, in China, Argentina, Australia and Europe. In 2010 it is concentrating on those that are at the financing stage and it’s focusing on third party licensing, said Kingston.
Like Ensyn, Dynamotive’s big goal is to perfect a process to upgrade its heavy bio-oil into a middle distillate that can be inserted into existing oil refineries to produce renewable transportation fuel, and like Ensyn, it’s racing to be the first.
Want to know how to court a corporate giant? Do your due diligence and make sure your technology is flawless. “Do what you do really well, understand what it is you do, and then connect with other parties in value chain that will get you to the market,” says Goodfellow.
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