Genoil and OW Bunker, one of the world’s leading physical distributors and resellers for marine fuel, have signed a Memorandum of Understanding, to build an upgrader for which OW Bunker will supply the feed oil to Genoil.
As part of the agreement, Genoil will build the Hydroconversion Upgrading System (GHU), while OW Bunker has agreed to purchase one million tons a year of low sulfur IFO from Genoil at an agreed price.
The GHU unit will upgrade and desulfurize the feed Genoil’s patented process to produce a marine fuel oil IFO 380, which complies with future IMO and EU regulations in the Emission Control Areas which intend to implement a limit of 0.1% sulfur content for the marine industry.
The bunker fuel market is estimated at around five million barrels per day. The purpose of this partnership is produce inexpensive low sulfur bunker fuel for the shipping industry. Genoil & OW Bunker have already selected a site in the port of Rotterdam.
“OW Bunker is a great partner to have for this project. I am excited that this opportunity is coming together quickly and we are working on the contract now and expect it to be completed shortly.” said Bengt Koch, a former Executive Chairman of Atlantic Container Lines, and who is currently the Director of Genoil and together with Genoil’s president Bruce Abbott is leading the project.
The production of the first low sulphur fuel oil from the project is expected in three years from the date of the contract.
“As a leading global fuel distributor, we have a responsibility to our customers to look at all options and innovations for compliance beyond expensive distillates. While we are still in the early stages of this initiative, we are pleased to be partnering with Genoil,” said Steffen Kortegaard Technical Director, OW Bunker.
genoil, April 15, 2014