Vancouver, B.C.-based DynaMotive Energy Systems Corp. continues to move forward with its business plan. The company announced that it has licensed a large pyrolysis plant to Rika Ltd., a Latvian holding company with operations in the Ukraine. There is also an option for two additional plants of similar size.
According to DynaMotive, the “plant will be located at one of Rika’s farm operations in the Ukraine which covers 8,700 hectares of land. The farm would be capable of supporting the three plants envisaged under the licensing agreement signed.” In other words, biomass from the farm would be feedstock for DynaMotive’s BioOil process.
Interestingly, DynaMotive acknowledged that support 10 years ago from Technology Partnerships Canada (TPC), a controversial granting body tagged as a Liberal “fund for friends,” provided the early financial support that helped make such an agreement with Rika possible. TPC, in the process of being wound down, is being reincarnated as the Transformative Technologies Program — unless, of course, the new Conservative government cans it. DynaMotive also got funding support from Sustainable Development Technology Canada, a far more effective funding body.
DynaMotive had two other announcements of interest this past week: one detailing its financial performance in the first quarter — less than $1 million for a company with a market capitalization of $178 million (Yikes!); and the other an announcement that the company will establish a U.S. head office in Washington, D.C. this spring as part of aggressive efforts to push U.S. sales.
It should also be pointed out that the company has tested its BioOil product with aluminum giant Alcoa as a possible replacement for heating oil. Alcoa continues to evaluate.
I have to say I like this company on the surface, but with the market cap it has there are a lot of retail investors out there destined to lose some serious money when this over-the-counter stock fall back to reality. Think about it, DynaMotive’s market cap is about $45 million higher than Carmanah Technologies, a profitable company in the red-hot solar market that has 10-times the revenues.