NEW YORK, NEW YORK–(Marketwired – April 8, 2014) – Genoil Inc. (OTCBB:GNOLF) and OW Bunker, one of the world’s leading physical distributors and resellers for marine fuel, announced today that they 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.
“OW Bunker is a great partner to have for this project. I am excited that this opportunity is coming together quickly and we are working on the contract now and expect it to be completed shortly.” says Bengt Koch, a former Executive Chairman of Atlantic Container Lines, and who is currently the Director of Genoil and together with Genoil’s president Bruce Abbott is leading the project.
The production of the first low sulphur fuel oil from the project is expected in three years from the date of the contract.
“As a leading global fuel distributor, we have a responsibility to our customers to look at all options and innovations for compliance beyond expensive distillates. While we are still in the early stages of this initiative, we are pleased to be partnering with Genoil,” Says Steffen Kortegaard Technical Director, OW Bunker.
Genoil Inc. is an international engineering technology development company based in Alberta, Canada with offices in the USA, UK, Sweden, Bosnia, UAE, Saudi Arabia that has pioneered an efficient oil desulfurization upgrading technology, oil and water separation and technologies, for the oil and gas and marine industries. Genoil has land holdings in Two Hills Canada with mineral rights and a large design test facility. Genoil has a partnership in the United Arab Emirates with the first born son of Khalifa bin Zayed Al Nahyan, who is the ruler there. The company is called Genoil Emirates. Genoil also has a relationship with a large EPC contractor.
OW Bunker is a leading global independent marine fuel (bunker) company founded in Denmark in 1980 with operations in 29 countries, including the world’s busiest and most important ports. OW Bunker acts as a physical distributor as well as reseller of marine fuel, and operates a global fleet of around 30 bunker vessels. OW Bunker also provides advanced risk management solutions aimed at controlling costs, minimizing risk and protecting against market fluctuations. Read more on www.owbunker.com
ADVISORY: Certain information regarding the company, including management’s assessment of future plans, contact values, completions dates, operations, profitability and the uses of the company’s technology, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas technologies, production, refining, marketing and transportation such as loss of market, volatility of prices, environmental risks, competition from other technologies, the effectiveness of the company’s technologies and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.