OW Bunker, Genoil Partner for Low Sulphur Fuel Oil

Posted by Eric Haun
Wednesday, April 09, 2014

Genoil to develop hydro cracking unit to produce ECA-compliant LSFO; OW Bunker to provide feed oil and buy one million tons of 0.1% LSFO per annum

OW Bunker, a physical distributors and resellers of marine fuels, today announced that it has signed a Memorandum of Understanding (MOU) with Genoil, the global engineering technology development company. The relationship has been established to build a facility that can produce 0.1% low sulphur fuel oil, and provide ship owners and operators with the opportunity to buy a cheaper product than distillates that still meets ECA compliance regulations.

As part of the agreement, Genoil will finance the building of a Hydroconversion Upgrading System (GHU) within Europe. The facility is primarily designed for hydro cracking and the desulphurization of fuel oils. OW Bunker will provide the initial feed oil for the GHU and, following the desulphurization process, will agree to buy one million tons of 0.1% low sulphur fuel oil at an agreed price each year. 

Steffen Kortegaard, Technical Director, OW Bunker, said, “Many ship owners and operators are concerned about the impact that ECA regulations will have on their bottom lines.  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 maximize 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.”

As part of the hydro cracking process, the feed oil product is heated up to over 320°C and pressurized to 120 bar in a hydrogen-based atmosphere and passing multiple catalysts in one or more reactors.  The hydrocarbon atoms are cracked into smaller and lighter fractions, and the sulphur atoms bind with the hydrogen to create hydrogen sulphide.  Following the cracking process, separation and distillation takes place creating Naphtha, Liquefied Petroleum Gas (LPG) and Low Sulphur Fuel Oil (LSFO).  Waste products including water and ammonia are treated and sustainably recycled.

It is anticipated that it will take a minimum of three years from commencing the building of the GHU, to the production of the first Low Sulphur Fuel Oil.

Commenting on the relationship, Bengt Koch, Director, Genoil 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.”
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

US Navy: Future USS John Finn (DDG 113) Launched

The future USS John Finn (DDG 113) was launched at the Huntington Ingalls Industries (HII) shipyard March 28.  During launch the drydock was flooded allowing the

WISTA AGM to Address Emerging Shipping Challenges

WISTA USA (Women’s International Shipping and Trading Association) is putting the final touches on a high-profile speaker line-up that will headline its upcoming

WOW at USMMA

The United States Merchant Marine Academy Hosts 7th Annual Women on the Water Conference. Last week, The United States Merchant Marine Academy (USMMA) in conjunction with the U.

Marine Power

Methanol Powered Ferry Launched in Baltic Sea

Swedish ferry operator Stena Line has announced that it has converted the Stena Germanica to run on methanol, an industry first.   The company spent $24 million on converting the ship to methanol.

MAN Demonstrates Two-Stroke Methanol Engine Concept

MAN Diesel & Turbo successfully demonstrated its ME-LGI concept engine in front of customers and partners at its Diesel Research Center in Copenhagen on March 17th, the company announced today.

Shipbuilding First: Strategic Delivers StratCat to Njord Offshore

Strategic Marine delivered a world’s first to European windfarm service sector operator, Njord Offshore.  This vessel builds on the success of the first eight

News

WOW at USMMA

The United States Merchant Marine Academy Hosts 7th Annual Women on the Water Conference. Last week, The United States Merchant Marine Academy (USMMA) in conjunction with the U.

Methanol Powered Ferry Launched in Baltic Sea

Swedish ferry operator Stena Line has announced that it has converted the Stena Germanica to run on methanol, an industry first.   The company spent $24 million on converting the ship to methanol.

U.S. Oil Train Traffic mostly from Midwest to East Coast

U.S. oil trains delivered more than 13.5 million barrels of crude oil from the Midwest to the East Coast in January, according to government data that gives a first

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1417 sec (7 req/sec)