Genoil Sees "Significant Interest" in Its 0.50% Sulfur Bunker Producing Hydroconversion Unit

Genoil says its GHU can be built alongside existing refinery infrastructure in major bunkering hubs. Image: Genoil

Calgary-based Genoil Inc. (Genoil) today said it is receiving "significant interest" from the shipping industry in its Genoil Hydroconversion Upgrader (GHU), which for existing bunkering installations is showing "compelling economics" as a solution for producing low sulfur fuels to meet the upcoming 0.50 percent global sulfur cap in 2020.

"As well as being more affordable for the shipping industry, the unit, which can produce one million tonnes per year of 2020 compliant low sulfur fuel oil, can also provide a return-on-investment in as little as three months with current market spreads," explained Genoil.

The company says its GHU, which costs between $30 million and $80 million to install per one million tonnes per year of capacity, can be built alongside existing refinery infrastructure in major bunkering hubs, enabling operators to avoid the costs associated with developing new infrastructure.

"Indeed at current levels, based on a spread between HFO and distillates of $179.78, and inclusive of Genoil's process fee, margins per metric tonne (MT) would be $123.78, equating to monthly profits of $11,701,789 based on a production capability of 94,537 MT per month," explained Genoil, noting that the shipping industry currently consumes more than 320 million tonnes of bunker fuel per year.

Genoil says its partner, Beijing Petrochemical Engineering Company (BPEC), provides the company with access to the finance and engineering capabilities necessary to fund and build the GHU.

"The GHU is the low cost breakthrough that the industry needs today. Shipping continues to face significant financial and liquidity challenges, which is why Genoil has developed a lower cost GHU solution for the industry, one that provides almost immediate payback," said Bruce Abbott, President & COO, Genoil.

"We have received a high level of interest throughout the industry from many large players who realise that the 2020 deadline is looming, and that they need to develop a cost effective strategy. The GHU is not only the lowest cost solution available, but is also a proven process that provides compliant bunker fuel without having to alter or retrofit existing vessels, and provides a faster payback."

In February, Ship & Bunker reported that Genoil had signed a memorandum of understanding (MoU) with the Bomin Group (Bomin) for the development of low sulfur fuel products in preparation for the implementation of the 0.50 percent global sulfur cap on marine fuel in 2020.