VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 21, 2007--A project in Australia to turn Darwin's green waste into biofuel for electricity generation at a mine using Dynamotive Energy Systems Corporation (OTCBB:DYMTF) fast pyrolysis technology, has taken a step forward with the approval of the project by the city council.

The environmentally-friendly plant would be the first of its kind in Australia and will be owned and operated by Renewable OilCorporation ('ROC'), which is the master licensee and is based in Melbourne.

It would convert green waste into greenhouse gas/carbon neutral BioOil fuel, which combusts with far less NOx and virtually no SOx in comparison to conventional fossil fuel. It would be built at the Council's Shoal Bay Waste Facility in Darwin. Excess green electricity generated in parallel with the pyrolysis plant would be fed into the Darwin grid.

Two Magellan 4 MW biofuel fired steam injected gas turbine power plants from Orenda Aerospace Corporation are proposed for remote power generation using the BioOil. These are the same as the OGT2500 Magellan gas turbine used in Dynamotive's West Lorne, Ontario, electricity generating plant, but with the extra power created from steam injection. This remote plant will be purpose-built and operated by ROC.

Dynamotive President and CEO, Andrew Kingston, said "This is very welcome news as Darwin will serve as a model for many cities throughout the world to develop recycling projects for green waste. Avoiding the disposal of large amounts of green waste will be very attractive to many cities as it will eliminate the creation of methane, a far more potentially harmful greenhouse gas. Our BioOil will also replace diesel fuel which would otherwise have been used to produce the electricity."

Mr. Kingston said he understood there would likely be additional planning and approval steps, but with such a strong endorsement from the city council, he said he was optimistic the project would progress satisfactorily through them also. "The Council already has a strong focus on waste reduction and recycling at its Shoal Bay site," he said.

In a company news release referring to ROC on October 3, 2006, he had said the first Australian BioOil production facility would be built in 2007 and become operational in 2008. "It appears we are still on target for this to happen."

Renewable Oil Corporation CEO, Colin Stucley, said Darwin was an ideal place to build the plant. "Darwin has a combination of things, such as the strong environmental policy here to enhance the environment and benefit the community. That makes our job easier. Darwin already has a well run green waste collection scheme. There are mining companies in remote parts of the Territory that already use diesel generators for electricity. Our dedicated remote power plant using BioOil will give them a competitive alternative with major environmental benefits."

About Dynamotive

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry waste biomass and energy crops into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals. Construction progress at the new Guelph plant may be seen by viewing photographs regularly posted on the company's website at www.dynamotive.com.

About Renewable Oil Corporation

ROC is an Australian company established to develop pyrolysis projects in this region. It has an exclusive technology licensing agreement with Dynamotive Energy Systems Corporation of Canada, and works closely with Dynamotive and its partners. ROC has been established in cooperation with Enecon Pty Ltd, an award-winning Australian engineering company that has specialised in bioenergy technologies and projects since 1998. ROC's board includes personnel from Enecon and Dynamotive as well as experts in corporate governance and legal and financial issues. ROC is a private company funded by investors in Australia, Canada, and Europe. www.renoil.com.au.

Forward Looking Statement

Statements in this news release concerning the company's business outlook or future economic performance; including the anticipation of future plant start-ups, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, 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". Forward-looking statements are by their nature 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 in energy prices, availability of capital, and the Company's ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans and schedules, customer and partner acceptance of new projects, changes in input pricing, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the Company's disclosure filings with the Securities and Exchange Commission.

Copyright Business Wire 2007

Dynamotive Energy Systems Corporation

Dynamotive Energy Systems Corporation

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