DynaMotive Announces DTI Renewable Energy Grant For BioOil Consortium

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TO BUSINESS AND ENVIRONMENTAL EDITORS:

DynaMotive Announces DTI Renewable Energy Grant For BioOil Consortium

EUROPE, ENGLAND, LONDON, Apr. 2 -/E-Wire/-- DynaMotive Europe Limited, a wholly owned subsidiary of DynaMotive Technologies Corporation (OTCBB: DYMTF) and producer of clean burning BioOil fuels, today announced details of one of the UK Government's largest ever grants to support the development of energy from biomass in the UK. The pnds stlg 1.16 million/US $1.7 million grant from the Department of Trade & Industry (DTI), which was announced by the UK Energy Minister Peter Hain, will enable commercial production testing of an integrated BioOil and electricity generating plant to take place in the UK. The project is expected to cost in excess of pnds stlg 4.5 million/US $6.6 million and will be funded equally by the partners.

The DTI grant has been made to Border Biofuels and its consortium partners DynaMotive Europe Limited and Orenda Aerospace Corporation to aid in the development of an integrated feedstock preparation, BioOil production and power generation plant in the UK. Border Biofuels plans to construct a 25- tonne/day facility utilizing DynaMotive Europe's patented fast pyrolysis technology to produce BioOil under a licensing agreement. The plant is expected to have a capacity to produce 12,000 litres of BioOil a day - enough to power a sawmill.

When constructed, the plant will mark an important milestone in the development of BioOil, becoming the largest commercial production facility of its kind in the UK. Building on a successful long-term co-development program, the integrated plant will demonstrate the commercial viability of larger scale integrated BioOil and electricity production facilities using wood waste as a fuel.

Peter Hain, UK Energy Minister, said: "I attach high priority to research and development of sustainable energy sources. Biomass is a key source of renewable energy and will be very important if we are to achieve our target of securing 10% of our electricity from renewable sources by 2010. I am delighted to announce this offer of government support for this exciting and innovative research project. The government is very committed to renewables and is introducing an obligation on electricity suppliers to supply a proportion of their electricity from renewable sources. It has also proposed a capital grants programme of pnds stlg 89 million for biomass and offshore wind."

BioOil is produced using a patented fast pyrolysis technology that converts biomass into a liquid fuel. Unlike fossil fuels, BioOil is clean burning, low in emissions, greenhouse gas neutral and can be produced economically from renewable and non-depleting biomass such as timber, sawdust and sugar cane bagasse. It can be used as an alternative to fossil fuels to generate power and heat in boilers, gas turbines and diesel engines

Dr. Adrian Bowles, Director of Border Biofuels, said: "We have long-term plans for the production of BioOil as a real alternative to fossil fuels to provide electricity in the UK. This testing and demonstration of an integrated facility will allow us to refine production techniques, ensuring that BioOil can be developed on this basis."

Antony Robson, Managing Director of DynaMotive Europe, said: "We have responded proactively to the European market where regulatory requirements relating to 'green energy' combined with high fossil fuel prices and carbon taxes make DynaMotive's BioOil a very attractive alternative fuel source. This fact, coupled with DynaMotive's leadership position in pyrolysis technology, provides a compelling case for a strong build-up of the technology in the European market."

Peter Billins, Chief Executive of British BioGen, said: "We are delighted for this unequivocal statement of government support for bioenergy and our exciting new technologies. This is clear evidence that the future of sustainable energy lies in government and industry working in partnership to deliver real and practical solutions today. BioOil will not end the era of fossil fuels but it will become a significant addition to the energy mix of the future."

Commenting on the announcement Jeremy Kinsman, Canada's High Commissioner to the UK, said: "I am delighted that leading-edge Canadian technology will be part of this exciting project. Renewable energies are clearly a vital component in meeting the challenges of sustainable development. The project underlines how Canadian and UK firms are responding to this challenge, and how great the opportunities are for technology-based collaboration between us."

DynaMotive Technologies Corporation is an energy systems company that is a world leader in the development of technology to produce competitively priced BioOil liquid fuels from renewable and non-depleting biomass. As a clean fuel to replace natural gas, diesel and other fossil fuels to produce power and heat in industrial boilers, gas turbines and diesel engines, BioOil presents significant market opportunities that DynaMotive intends to exploit commercially. The Company and its partners are also engaged in research and development on a range of derivative products that, if successful, could potentially further enhance the market and value for BioOil as an alternative fuel and product source.

Forward Looking Statement Statements in this news release concerning the company's business outlook or future economic performance; anticipated profitability, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws.

Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stored in such statements. Such risks, uncertainties and factors include, but are not limited to, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.

DynaMotive Technologies Corporation

call Toll Free (in North America): 1-[REDACTED-PHONE]; Raymond

McAllister, Director, Corporate Communications, Tel: [REDACTED-PHONE], Fax:

[REDACTED-PHONE], Email: [REDACTED-EMAIL], Website: www.dynamotive.com;

For more information in Europe, contact: Antony Robson, Managing Director,

DynaMotive Europe Limited, Tel: 44-0-20-7518-9380, Fax: 44-0-20-7518-9381,

Email: [REDACTED-EMAIL]; For US enquiries, contact: James Acheson,

Chief Operating Officer, DynaMotive Corporation, Tel: [REDACTED-PHONE], Fax:

[REDACTED-PHONE], Email: [REDACTED-EMAIL];

To request a free copy of this organization''s annual report, please go to

www.newswire.ca and click on reports@cnw./

http://www.dynamotive.com

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