Publicly traded clean technology engineering company, Genoil says its newly developed Hydroconversion Upgrader (GHU), can convert heavy or sour crude oil into much more valuable, 0.50% compliant low sulphur oil, at a fraction of the cost of traditional refining processes.
Genoil says: “It is ideally suited for the maritime market, and enables ship owners and fuel payers to capitalise on the price spread between high and low sulphur fuels, as well as ensure compliance.”
Genoil has also developed a mini-GHU, which can be built alongside existing refinery infrastructure in major bunkering hubs rather than incurring the costs to develop and build all new infrastructure. The GHU unit costs between $60 million and $80 million to install per one million tons per year of capacity. At current levels, based on a spread between HFO and distillates of $179.78, and inclusive of Genoil’s process fee, margins per tonne would be $123.78, equating to monthly profits of $11,701,789 based on a production capability of 94,537 tonnes per month.
The company says the GHU enables production of compliant fuel at a much lower cost than oil refiners, as well as alleviating the industry pressure on the industry’s distillate supply challenges. Genoil says it has signed a series of strategic partnerships with scientific, engineering, refining and financial organisations to fully exploit the potential of the GHU technology worldwide.
Genoil says its GHU technology provides ship owners and fuel payers with a viable solution to secure compliant fuel with the same characteristics and compatibility with engines as existing HFO.