Bunker fuel supplier Bomin Group and clean technology engineering firm Genoil Inc have penned a memorandum of understanding (MOU) to collaborate on developing low sulphur fuel oil (LSFO) products.
The LSFO products would be in compliant with IMO’s impending global low sulphur fuel content cap of 0.5% by 2020.
The MOU sees the two companies confirm their mutual intent to provide a framework, which will aim to develop a co-operation agreement to supply the market with compliant low sulphur products, utilizing Genoil's technology, in conjunction with Bomin's global physical supply and storage infrastructure.
Genoil's proprietary technology, the Hydroconversion Upgrader (GHU), converts heavy crude oils and refinery residual products into cleaner, lower emission energy.
The GHU removes sulphur from Heavy Fuel Oil (HFO), without altering the quality, and turns it into compatible and more cost-effective 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.
Genoil's innovation improves upon the existing data-verified Fixed Bed Reactor technology, which is currently used in nearly 85% of the world's reactors. A Genoil GHU unit can be placed in locations including receiving terminals, pipelines and ports.
Bruce Abbott, President and Chief Operating Officer, Genoil Inc., said: "With the 2020 global sulphur cap now confirmed, we are delighted to explore this potential partnership with Bomin Group, and test the market opportunity for 0.5% low sulphur fuel oil."