Canada’s Dynamotive Energy Invests in Six Biofuel Plants in Argentina

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Researched by Industrial Info Resources (Sugar Land, Texas). On May 8, 2007 at the First Biofuel Congress of the Americas held in the Argentinean capital of Buenos Aires, the Canadian company Dynamotive Energy Systems Corporation (OTC BB:DYMTF ), its subsidiary Dynamotive Latinoamericana SA and the engineering and construction firm TECNA signed an agreement with the Provincial Government of Corrientes in Argentina to develop six biofuel plants in that province.

Dynamotive’s carbon gas neutral fast technology turns dry waste biomass and energy crops into BioOil, a product patented in 1991 by the Canadian company. Argentina possesses important forest resources and through the use of this proven method of turning agricultural and forest residues into power and renewable industrial fuel, companies can expect to receive considerable environmental and economic benefits.

The Canadian company is to build the plants in the Corrientes Province which will cost up to $17 million each. The total investment of approximately $120 million will be provided by private investors. According to Andrew Kingston, Dynamotive President and CEO, the final cost of using BioOil is 20% cheaper than the rest of the existing fuels in the market. Moreover, the cost of production of one million BTU of BioOil is $6 while if natural gas is used the cost is no less than $8.50.

Even though the signed agreement is subject to further negotiation, once ready, the construction of these Biofuel plants in Argentina will help the country tackle environmental issues arising from vast decomposing wood waste, increase electricity generating capacity and reduce dependency on fossil fuel imports.

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