Clean technology engineering company
Genoil Inc has announced that it has signed a tripartite science, research and technical cooperation agreement with two leading Russian institutions.
Genoil is teaming up with the
UFA Scientific Research Institute of Petroleum Refining and Petrochemistry, located in Bashkortostan, Russia, and the
OJS VNIIUS Institute, based in Tatarstan, Russia to establish the new partnership.
The scope of the agreement is to research, develop and market cutting-edge technologies and patents both in the Americas and globally. The partnership will focus on the petrochemistry, petroleum refining and gas chemistry industries where, through joint cooperation the parties aim to add value to client proposals.
The agreement combines the Genoil Hydroconversion Upgrader (GHU) sulphur removal technology with one of the most advanced scientific pilot testing and R&D centres in the world, utilizing the sophisticated and cutting-edge equipment and tools of the two Russian institutes.
In particular, the group's activities will be concentrated on designing a low-cost desulphurization project to meet upcoming IMO 2020 sulphur legislation; solutions for complex oil and gas refining challenges; the upgrading of petroleum for transportation and processing, including the removal of sulphur compounds; catalytic processes of fuel production; processing of hydrogen sulfide into elemental sulphur; and the procurement, construction and start-up of projects.
Bruce Abbott, COO of Genoil, commented: "This is an exciting partnership and represents yet another significant step forward for Genoil's innovative technology. All three parties are leaders in their respective fields of engineering technology and R&D, and our combined expertise will allow us to bring to market new innovations and technologies to further transform an industry experiencing significant change."
Genoil also confirmed that the partnership has already
begun testing HSFO at UFA for a shipping client - to meet IMO 2020 sulfur regulations.
The UFA is the sole government institute specializing in refining and heavy residues processing technologies.
GHU technology
The GHU is an advanced upgrading and desulphurization technology which converts heavy or sour crude oil into low sulphur fuel oil (LSFO); it is designed to remove sulphur from heavy fuel oil (HFO) without altering the fuel quality, to produce LSFO that is compliant with new MARPOL Annex VI regulations.
The GHU unit is built to produce
one million tonnes per year of 2020-compliant LSFO. It costs between
$30 million and
$80 million to install per one million tonnes per year of capacity.
Based on Genoil's predicted crude prices, said to have been reviewed by independent bodies, an initial investment of $30 million
could achieve payback in less than three months, according to the Canada-headquartered company.
Back in May, Genoil calculated that with a spread of
$179.78 between heavy fuel oil (HFO) and distillates, 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.
Measuring around 50m x 80m, the GHU takes up significantly less space than a full refinery unit. It can be built alongside existing refinery infrastructure in major bunkering hubs - rather than incurring the costs to develop and build new infrastructure - and can be placed in different locations, including receiving terminals, pipeline facilities and ports.
Image: Genoil GHU design test plant.
