Companies cooperate to upgrade pyrolysis oil

July 5, 2010, Vancouver – Dynamotive and IFP, a France-based research and training
centre, have signed a memorandum of understanding to cooperate in the field of
pyrolysis oil upgrading with the aim of producing second-generation biofuels.

Pyrolysis
oils present several challenges to overcome as they are typically high in
water, solids, and acids, and do not meet the specifications of fossil fuels.
Dynamotive’s research and development venture with Dr. Desmond Radlein started
the development of a process to upgrade pyrolysis oil that was demonstrated at
its research laboratory. The process potentially could overcome these
challenges and could provide an economically viable process to upgrade
pyrolysis oil to synthetic hydrocarbons. Dynamotive recognizes that the
development of synthetic fuels requires specific expertise, which IFP has in
this field.

The
memorandum establishes progress milestones through 2010. Subject to
satisfactory completion of the milestones, the two companies may enter into
definitive agreements.