Genoil has signed a $50 billion LOI that includes the production of desulfurised fuel in Russia.
Genoil Inc. (Genoil) Wednesday announced that it has signed a $50 billion Letter of Intent (LOI) for the development of oil fields with clean technology upgrades, refineries, and pipelines in Russia, which will incorporate Genoil's hydroconversion (GHU) process for desulfurisation.
The project is said to cover the production of 3.5 million barrels per day (bpd), and will see Genoil become responsible for the design and construction of a total of six million tonnes per year of new refinery capacity in Chechnya.
"The negotiation of this LOI marks an important milestone from Genoil, demonstrating that we can act as a service provider as well as a technology provider," said Thomas F. Bugg, Vice President of Genoil Canada.
"Building on our previous Letter of Intent from a Chinese bank in April of this year, this latest agreement further supports our commitment to develop sustainable energy sources, helping to solve the supply challenges we face now and in the future."
Thomas F. Bugg, Vice President, Genoil Canada
The negotiation of this LOI marks an important milestone from Genoil
Genoil says its hydroconversion process, which will be used under the agreement, provides an improvement to current data-verified Fixed Bed Hydroconversion technology.
"Genoil's investment into hydroconversion projects can significantly increase the desulfurisation, demetalisation and denitrogenisation conversion rates, and increase operating efficiencies by 75 percent," explained the company.
In order to enable the refinery expansion under the LOI, Genoil says it will organise a large consortium of Chinese engineering and services companies in order to ensure required support and project guarantees.
In April, Ship & Bunker reported that Genoil and its consortium partner Beijing Petrochemical Engineering Co Ltd (BPEC) had received a $5 billion LOI to fund a 500,000 bpd desulfurisation and upgrading project aimed at producing compliant bunkers to meet the upcoming 0.5 percent global sulfur cap.