Dynamotive and Mitsubishi Corporation sign cooperation agreement
Dynamotive Energy Systems Corporation, dedicated to producing second-generation biofuels from cellulosic biomass via fast pyrolysis, and Mitsubishi Corporation, Japan's largest general trading and investment company, signed a letter of agreement whereby development and strategic opportunities for cooperation are identified and protocols are established to jointly advance them.
The comprehensive agreement between Mitsubishi’s New Energy Business Unit, Business Innovation Group, and Dynamotive lays out the framework for exploring areas of cooperation in project development, finance, technology development, product research and application, and fuel supply and trading. It also recognizes Dynamotive's market potential in the field of cellulose based biofuels providing it and its partners a unique opportunity for growth.
The companies have worked cooperatively for the past 18 months, having previously signed a Memorandum of Understanding with Mitsubishi Canada Ltd., and have identified projects and commercial opportunities that are earmarked for early development. Each opportunity described in the letter is subject to negotiation of a definitive agreement between Dynamotive and the corresponding business unit of Mitsubishi.
energy :: sustainability :: biomass :: bioenergy :: biofuels :: cellulosic :: bio-oil :: fast pyrolysis :: carbon-negative :: biochar ::
BioOil and Dynamotive's 'BioOil Plus' (more here) are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program. BioOil can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production. The product can be further refined into liquid fuels for transportation.
Mitsubishi Corporation is Japan's largest general trading & investment company (sogo shosha). Together, with its over 500 group companies, Mitsubishi employs a multinational workforce of approximately 54,000 people. Mitsubishi has long been engaged in business with customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and living essentials.
Its new Energy Business Unit, Business Innovation Group, works on the development of new energy to supplement and replace fossil fuels, such as solar batteries, fuel cells, and biomass fuels. In addition, the group finances a variety of businesses by creating a clean energy fund.
Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon and greenhouse-gas-neutral fast pyrolysis technology uses medium temperatures and oxygen-free conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals.
Earlier this year, Dynamotive announced it was going to test biochar soil sequestration, which results in carbon-negative biofuels (previous post).
The comprehensive agreement between Mitsubishi’s New Energy Business Unit, Business Innovation Group, and Dynamotive lays out the framework for exploring areas of cooperation in project development, finance, technology development, product research and application, and fuel supply and trading. It also recognizes Dynamotive's market potential in the field of cellulose based biofuels providing it and its partners a unique opportunity for growth.
The companies have worked cooperatively for the past 18 months, having previously signed a Memorandum of Understanding with Mitsubishi Canada Ltd., and have identified projects and commercial opportunities that are earmarked for early development. Each opportunity described in the letter is subject to negotiation of a definitive agreement between Dynamotive and the corresponding business unit of Mitsubishi.
- Biofuel production: included in the project opportunities are Dynamotive's current development in Argentina where it is building 6 pyrolysis plants (earlier post) and other projects in Latin America, project development in China where Dynamotive has worked in cooperation with the National Development and Reform Commission, project opportunities in the US where Dynamotive has an operating subsidiary and new project opportunities in Japan and South East Asia, among others that are introduced by Mitsubishi.
- Project finance: in addition, the agreement envisages project finance and supply of equipment by Mitsubishi in line with the previous MOU signed between Dynamotive and Mitsubishi Canada. Specifically, the Companies have agreed to initiate preliminary discussion for the refinancing of Dynamotive’s current plant and equity participation in West Lorne. This plant has an asset value of approximately U.S. $18 million, with the full output of West Lorne contractually committed (earlier post).
- Fuel supply and trading: the agreement framework establishes parameters for the possibility to supply BioOil from Evolution Biofuels (Guelph Plant, previous post) to Mitsubishi for testing and market development purposes as part of an overall expansion strategy. This plant's production capacity is rated at 50,000 tonnes annually.
- Technology licensing: Mitsubishi has requested the licensing of Dynamotive’s technology for small plant capacity (20 tonnes and under) for fabrication and marketing in Japan. Dynamotive is evaluating, as a result of this request, the opportunity to deliver a 15 tonne per day plant to Mitsubishi. Dynamotive currently has a plant of this capacity that could be refurbished for this purpose.
energy :: sustainability :: biomass :: bioenergy :: biofuels :: cellulosic :: bio-oil :: fast pyrolysis :: carbon-negative :: biochar ::
BioOil and Dynamotive's 'BioOil Plus' (more here) are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program. BioOil can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production. The product can be further refined into liquid fuels for transportation.
Mitsubishi Corporation is Japan's largest general trading & investment company (sogo shosha). Together, with its over 500 group companies, Mitsubishi employs a multinational workforce of approximately 54,000 people. Mitsubishi has long been engaged in business with customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and living essentials.
Its new Energy Business Unit, Business Innovation Group, works on the development of new energy to supplement and replace fossil fuels, such as solar batteries, fuel cells, and biomass fuels. In addition, the group finances a variety of businesses by creating a clean energy fund.
Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon and greenhouse-gas-neutral fast pyrolysis technology uses medium temperatures and oxygen-free conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals.
Earlier this year, Dynamotive announced it was going to test biochar soil sequestration, which results in carbon-negative biofuels (previous post).
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Its new Energy Business Unit, Business Innovation Group, works on the development of new energy to supplement and replace fossil fuels, such as solar batteries, fuel cells, and biomass fuels. In addition, the group finances a variety of businesses by creating a clean energy fund.
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