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Genoil: Hydroconversion Upgrader Technology Could Save Shipping over $35 billion per year in Fuel Costs when Applied to Just 20% of World Fleet—Genoil commences Pemex Oil Test
Genoil: Hydroconversion Upgrader Technology Could Save Shipping over $35 billion per year in Fuel Costs when Applied to Just 20% of World Fleet—Genoil commences Pemex Oil Test.
About this update from Genoil Inc.
[{"type":"text","content":"\nNEW YORK, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Genoil Inc. (GNOLF), the publicly traded clean technology engineering company for the energy industry, announced today that it has commenced testing Pemex oil by initiating the passing through of the oil through the upgrader to convert heavy oil into light de-sulphured oil.\n Its Hydroconversion Upgrader (GHU®) could save the shipping industry billions of dollars a year in unnecessary bunker fuel costs.  Demand for low sulphur fuel will increase significantly in 2020 when the sulphur content of marine fuel is reduced from the current 3.5% to 0.5%, with shipowners and cargo owners, who pay for the majority of bunker fuel, facing a dilemma; switch to distillates or potentially costly blended marine diesel oil (MDO), pay for an onboard scrubber unit at the cost of millions of up front dollars in capital expenditure, or invest in LNG, where the global infrastructure and standards for bunkering are currently very embryonic. Genoil’s GHU® offers a fourth way – enabling the conversion of Heavy Sulphur Fuel Oil (HSFO) and crudes into more valuable low sulphur fuel that will be compliant with new International Maritime Organization (IMO) Annex VI Sulphur rules from 2020.  Leveraging on a considerably improved patented fixed bed reactor technology, the GHU can be built alongside existing refinery infrastructure in major bunkering hubs rather than incurring the costs to develop and build all new infrastructure. Measuring as little as 50m x 80m, the GHU unit costs between $30 million and $80 million to install per one million tonnes per year of capacity. Based on Genoil’s predicted crude prices, which have been reviewed by independent bodies, an initial investment of $30 million could achieve payback in less than three months with current market spreads. As global demand rises for lower sulphur HSFO to meet more stringent environmental regulations, the bunker fuel price spread is likely to increase significantly.  “Moreover, refiners have finally blinked in their investment standoff with the shipping industry, loosening the purse strings to reduce fuel oil output ahead of the IMO’s 2020 regulations, with financing finally set to flow into additions and expansions of coking, cracking and deasphalting units in parts of Europe, Asia and South ...