Genoil Inc. and OW Bunker 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.