The companies, OW Bunker and Genoil Inc., have signed a Memorandum of Understanding (MoU) to build and supply a Hydro-conversion Upgrading System (GHU) for bunker fuel in the Port of Rotterdam.
Canada-based engineering company Genoil will head up the design of the upgrader at the port, whilst Danish fuel suppliers OW Bunker will supply the feed oil.
In regards to the agreement, OW Bunker has pledged to purchase at least one million tonnes of the low sulphur IFO from Genoil at a fixed price per annum.
The GHU unit is designed to upgrade and remove all traces of sulphur from the supplied feed.
The result is an inexpensive bunker fuel with 0.1 percent sulphur content – perfectly within the regulations set within Emission Control Areas outlined by the International Maritime Organisation (IMO) and EU.
Speaking to Market Watch, Bengt Koch, Genoil director said “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.”
OW Technical Director, Steffen Kortegaard showed the same sentiment saying “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.”
The first batch of low sulphur oil is expected to be produced in three years time.