Genoil attacks the sulphur gap

Apr 22 2016


Publicly traded clean technology engineering company Genoil has received a $5 bill Letter of Intent (LOI) to fund a 500,000 barrel per day de-sulphurisation and upgrading project located in the Middle East.

The LOI was awarded to Genoil in conjunction with consortium partner Beijing Petrochemical Engineering(BPEC).  The project will see the implementation of Genoil’s proprietary technology producing 500,000 barrels per day of low sulphur crude oil.

The funding, from one of the largest banks in China, will cover the project cost, and will be presented to a major Middle East player. The consortium’s goal is to develop 3.5 mill barrels per day of de-sulphurisation capacity at a total estimated cost of $35-50 bill. 

Financing will be subject to a number of conditions and approval of the contract terms by all the parties involved.

This project comes at a time where there is concern of a pending shortfall of distillate fuel compliant with the current IMO MARPOL Annex VI regional regulations, which specifies 0.1% sulphur cap, as well as a proposed global cap of 0.5%, expected to be fully in place by 2020.

Genoil is marketing the idea to the shipping industry, where its technology is able to produce low cost compliant LSFO from refinery residue without the need for blending, and to be priced much more competitively than marine gasoil (MGO).

While refineries are facing the considerable capital expenditure to produce more middle distillates, the industry has not found a cost effective way to remove sulphur from fuel oil or refinery residue. Genoil said that its technology addresses this problem and can produce LSFO at up to 75% less cost.

Commenting on the development, Bruce Abbott, Genoil president and CEO, said:
“With Genoil’s GHU technology, we can take refinery residue and turn it into LSFO meeting 2020 legislation. With financial and engineering support from around the world, we are committed to developing sustainable sources that will help solve some of the energy challenges that we face today.

“The shipping industry is experiencing increased environmental regulation, and seismic change within the fuel supply chain. Genoil’s ability to provide the industry with compliant products in time to meet 2020 regulations will go a long way to alleviating the pressure on refiners, charterers, shipowners, as well as fuel suppliers, in having access to adequate, cost effective products.”

Another project for 1 mill barrels per day unit is currently under consideration by a second national oil company. Additional funding for future projects will be considered on a project-by-project basis, Genoil said.  



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