Dynamotive Energy Systems (OTCBB: DYMTF) of Vancouver, BC has commissioned its new flagship BioOil plant just west of Toronto to turn waste wood into industrial heating oils.

The plant, is designed to process 200 tonnes per day of cellulosic biomass (recycled wood) and 37,000 gallons of biofuel per day with the equivalent energy content of 550 barrels of conventional oil, for a total of 12.2 million gallons a year.

Total development costs for the plant have been estimated at $16.5 million USD. Full operations are scheduled for the second quarter.

“The hot commissioning went well and results point to an initialization of actual production of biofuel later this month. Clearly, it is a step-by-step process as we are dealing with a variety of systems that need to be brought up to optimum operational capacity over a certain, specified period of time,” said Dynamotive President and CEO Andrew Kingston.

“The construction itself has shown that the modular design has worked well from the point of view of it being potentially feasible to transport an entire plant to almost anywhere in the world by road.”

The Guelph plant will be operated by Evolution Biofuels. Dynamotive has retained a minority ownership position in Evolution Biofuels and will lease the plant to the majority owner.

The company claims its BioOil produces substantially less smog-precursor nitrogen oxides ‘NOx’ emissions than conventional oil as well as little or no sulfur oxide gases ‘SOx,’ a cause of acid rain. The company's BioOil and Intermediate BioOil products are apparently price-competitive replacements for heating oils #2 and #6 which are widely used in industrial boilers and furnaces. They have been EcoLogo certified, according to Dynamotive, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program.

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina.

It uses a carbon/greenhouse gas neutral fast pyrolysis technique using medium temperatures and oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation.