Under the agreement, Genoil will finance the construction of a Hydroconversion Upgrading System (GHU) in Europe for hydro cracking and desulphurisation of fuel oils. The feed oil for the plant will be provided by OW Bunker, who will also agree to buy up 1m tonnes of the 0.1% fuel oil annually.
"Many shipowners and operators are concerned about the impact that ECA regulations will have on their bottom lines," commented Steffen Kortegaard, technical director, OW Bunker. "As a leading global fuel distributor, we believe we have a responsibility to our customers to look at all options and innovations for compliance beyond expensive distillates to help them maximise control over their operational costs. While we are still in the early stages of this initiative, we are pleased to be partnering with Genoil, and look forward to working together to bring it to fruition."
Genoil's Bengt Koch said: "It is great to join forces with OW Bunker on this project, and we are excited that this opportunity is coming together quickly. Despite the challenges that ship owners and operators face, we have always believed that technology and innovation provides the foundation for ensuring compliance, and that it will also create a better, more profitable and more sustainable industry going forward."
The companies expect that first low sulphur fuel oil will be produced three years after building of the GHU commences, at the earliest.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
