Americas News
Genoil Upbeat on High-to-low Sulfur Fuel Conversion Technology
Canadian oil technologist Genoil is upbeat over prospects for its hydroconversion technology which extracts low sulfur fuel oil from high sulfur material and bypasses the need for full-blown refinery processing.
A standalone Genoil processing unit can be attached to an already existing refininery located in a port where there is a ready point to supply for ships about to make the global switch from high to low sulfur bunker fuel.
Given the significance of the International Maritime Organisation's (IMO) 0.5% global sulfur cap for shipping and refining, the market is not short of technological solutions to the high/low sulfur conundrum. But, according to Genoil president and chief executive David Lifschultz, the numbers are compelling for his company's proposition.
That bunker prices will move on the change is beyond argument. In an interview with Ship and Bunker, Lifschultz said that as much as $80 could be shaved off the cost of a metric tonne (mt) of high sulfur fuel oil.
For ships opting to stay with high sulfur fuel oil through the use of a scrubber (emission abatement technology), the cost of operating a scrubber is around $45 a tonne. Lifschultz said that Genoil's IM2020-compliant fuel comes in at under that number.
Genoil director Bengt Koch made the point that shipping companies are unlikely to adopt a single solution for their entire fleet when working out their IMO2020-compliant fuel needs. Therefore, Genoil's offer could play a viable role in any shipping company's bunker fuel strategy.
To cover capital and operational costs, the company would want a client to commit to buying a proportion of its bunkers from Genoil.
Is the company close to agreeing such a deal?
Classification society Lloyds Register (LR) has verified the Genoil process and end product. LR provided the test sample and was present at the demonstration although, as per standard commercial practice, aspects of the process were not visible.
According to Lifschultz, the LR move has heightened interest in what the company is doing.
Lifschultz said he would expect Genoil to be in a position announce a major supply deal with a shipping client in six to 12 months' time.
