Genoil to perform desulphurization test 'within next thirty days'

Prepares for Russia demonstration with Pemex heavy crude; gets go-ahead to relocate to Caribbean.



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Updated on 30 May 2018 08:21 GMT

Genoil Inc. - a developer of sulphur removal technology which converts heavy or sour crude oil into low sulphur fuel oil - has revealed that it is set to perform a demonstration "within the next thirty days" at its engineering headquarters in Russia to test Pemex's heavy crude oil.

The desulphurization test is to be hosted by the UFA Scientific Research Institute of Petroleum Refining and Petrochemistry, located in Bashkortostan.

A UK-based provider of classification, compliance and consultancy services to the marine and shipping industry has also expressed interest in witnessing the UFA demonstration, Genoil said.

The test is to include: preparation of the catalyst, loading procedures, catalyst activation, temperatures, pressures recommended by Genoil's new catalyst partners, feed rates, analyses and conclusions.

Testing is expected to commence within the next thirty days as Pemex has needed time to dispatch its engineers to Russia, Genoil explained.

Genoil said it believes the Pemex heavy crude oil test results will exceed the recent demonstration tests it performed with China Petroleum Engineering and Construction Company (CPECC), a division of China National Petroleum Corporation (CNPC).

Genoil noted that CPECC is "already deeply familiar" with its Genoil Hydroconversion Upgrading (GHU) process and would be capable of building a large-scale commercial Genoil GHU project in Mexico.

The proprietary GHU desulphurization process converts heavy or sour crude oil into more valuable, compliant low-sulphur oil. Genoil says its technology will enable the procedure to be carried out at a "fraction of the cost of traditional refining processes".

Chairman David Lifschultz commented that Genoil was preparing to become "an international presence in a changing oil industry as global demand rises for lower sulfur crude oil and fuels to meet more stringent environmental regulations, including International Maritime Organization 2020 specifications".

Lifschultz added: "Genoil expects its Hydroconversion Upgrader to be the leading choice of both upstream and downstream energy sectors - including the maritime industry - for compliance. With the participation and support of the leading provider of classification, who is instrumental in shaping the industry's future through the development of novel and innovative technologies, we feel this will be a successful strategy to implement Genoil's solutions to meet upcoming IMO low sulfur fuel legislation."

Move to Curacao

Genoil revealed that it has also received a letter of satisfaction from Corporations Canada approving its relocation to Curacao.

The sulphur removal specialist said the move had been "planned for some time" and that it would enable Canadian shareholders to once again trade Genoil stock.

"Curacao has a reputation as being one of the best jurisdictions and has one of the largest NY Stock Exchange energy [companies] domiciled there. The Curacao jurisdiction will help Genoil to do business throughout the world, save on taxes, and still be located in an important energy center. Curacao offers global companies protection from political risks associated from doing business in different areas of the world," Genoil observed.