Vancouver, BC, Sept. 12--DynaMotive Energy Systems Corp., Bruks Klockner and UMA Engineering announced today that a preliminary evaluation of a waste-to-energy system capable of converting wood residue into BioOil has been completed.
The evaluation, carried out for one of British Columbia's existing forest operations, estimates the cost of conversion to be less than CDN$4.00 per gigajoule of energy, well below the current and historical prices of natural gas.
Natural gas prices have escalated over the past two years with peak well head prices exceeding CDN$10 per gigajoule. Price escalation and volatility is a significant concern within the sector.
DynaMotive's system, currently under development, processes residue produced by wood sector operations, potentially providing a secure supply of energy at a reduced cost, increase natural resource utilization and favorably impact the environment. BioOil, by virtue of being derived from bio-mass, is considered to be a green house gas neutral fuel, has no sulfur and low nitrogen oxide emissions.
BioOil can be used directly at the point of production without requirement for refining. Direct BioOil use has been demonstrated in boilers (lumber kilns, lime kilns) and in Magellan Aerospace Corp., and Orenda Industrial power generation turbines.
Based on current evaluation, the opportunity for shipment of BioOil at competitive prices also arises. Cost of transportation is a significant factor in delivering energy commodities. BioOil has approximately seven times the energy density of dry forest and sawmill residue, giving BioOil a significant logistical and transportation cost advantage over solid bio-mass.
DynaMotive intends to deliver the first system to Erie Flooring and Wood Products. The fuel would be utilized to drive an Orenda power generation system capable of generating 2.5 megawatts of electricity and 12,000 lbs/hr pounds of steam for Erie Flooring's operations. A second system will be constructed for applications within the forest industry. Ramsay Machine Works has been selected as the plant fabricators for the two plants.
Commenting on the development, Andrew Kingston, President & CEO of DynaMotive said, "Our objective of being able to compete favorably with fossil fuels on level terms in industrial applications is quickly becoming a reality. Being able to do so emphatically at a base level opens multiple opportunities for DynaMotive. The development of this system has been made possible through the support of our partners.
"The installed system has an estimated cost of CDN$7,300,000, capable of processing 200 tonnes per day (wet) bio-mass and provide sufficient BioOil to displace 400,000 gigajoules of natural gas per annum. Operational costs and royalties on energy production for such a plant were estimated at CDN$900,000 per annum, with finance costs and capital amortization estimated at CDN$700,000 per annum. The evaluation considers zero transfer cost for wood residue."
