FOR: GENOIL INC.
OTCQB SYMBOL: GNOLF
Date issue: May 16, 2017
Time in: 8:00 AM e
GHU Receiving Significant Interest from the Shipping Industry as a Viable and Cost Effective Solution to Meet 2020 0.5% Global Sulphur Cap With ROI in Three Months
CALGARY, ALBERTA--(Marketwired - May 16, 2017) - Genoil Inc., (OTCQB:GNOLF), the publicly traded clean technology engineering company for the petroleum industries, today announced compelling economics for the Genoil Hydroconversion Upgrader (GHU),for installations where there is existing infrastructure. As well as being more affordable for the shipping industry, the unit, which can produce one million tonnes per year of 2020 compliant low sulphur fuel oil, can also provide a return-on-investment in as little as three months with current market spreads.
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. The GHU unit costs between $30 million and $80 million to install per one million tons 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. Indeed at current levels, based on a spread between HFO and distillates of $179.78, 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. The shipping industry currently consumes over 320 million tonnes of bunker fuel per annum.
The GHU would also take up significantly less space than full refinery unit, measuring as little as 50m x 80m. The low cost and small footprint mean the GHU can easily be installed wherever adequate existing infrastructure exists, such as in major bunkering hubs worldwide.
Genoil's GHU is the most conservative compliance solution, because it uses a considerably improved patented fixed bed reactor technology. Critically, the GHU removes sulphur from Heavy Fuel Oil (HFO) at an extremely low cost, without altering the fuel quality, to produce low sulphur fuel oil, compliant with new MARPOL Annex VI regulations, which mandates the use of fuel with a sulphur content of less than 0.5% globally from 2020. The Genoil GHU unit can be placed in many different locations including receiving terminals, pipelines and ports.
"The GHU is the low cost breakthrough that the industry needs today. Shipping continues to face significant financial and liquidity challenges, which is why Genoil is offering its low cost GHU solution for the industry, one that provides almost immediate payback," said Bruce Abbott, President & COO, Genoil Inc. "We have received a high level of interest throughout the industry from many large players who realise that the 2020 deadline is looming, and that they need to develop a cost effective strategy. The GHU is not only the lowest cost solution available, but is also a proven process that provides compliant bunker fuel without having to alter or retrofit existing vessels, and provides a faster payback."
Through its partner, Beijing Petrochemical Engineering Company (BPEC), Genoil has access to the finance and engineering capabilities necessary to fund and build the GHU.
About Genoil Inc.:
Genoil is a publicly traded Canadian clean technology engineering company for the petroleum industries. Genoil is headquartered in Edmonton Alberta, with offices in Calgary, Sherwood Park, New York City, Constanta Romania, and Dubai & Abu Dhabi. Genoil has developed its proprietary technology, the Hydroconversion Upgrader (GHU), which converts heavy crude oils and refinery bottoms into clean burning fuels for transportation industries including shipping. The GHU can be placed in remote locations, including receiving terminals, pipelines and ports. The company operates one of the largest and most advanced pilot & design test facilities in the world, from its 147-acre site in Alberta, Canada.
- END RELEASE - 16/05/2017
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FOR: GENOIL INC.
OTCQB SYMBOL: GNOLF
INDUSTRY: Energy and Utilities - Oil and Gas
RELEASE ID: 20170516CC0034
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