Genoil Inc. (Genoil), the publicly traded clean technology engineering company for the petroleum industry, has announced the signing of a US$50 billion Letter of Intent (LoI) to develop oilfields and construct clean technology upgraders, refineries and pipelines in Russia.
The project will incorporate Genoil's efficient clean technology hydroconversion (GHU) process, and mark the second time that Genoil will provided a complete integrated project, from the development of oilfields to the production of cleaner fuels. The scope of the project is to produce 3.5 million bpd.
Genoil's hydroconversion process improves upon the existing data verified fixed bed hydroconversion technology, which is used worldwide. Currently, 85% of all desulfurisation is taking place worldwide via hydroconversion. Genoil's investment into hydroconversion projects can significantly increase the desulfurisation, demetalisation and denitrogenisation conversion rates, and increase operating efficiencies by 75%.
In addition to the development of the oilfields and construction of the technology, the parties involved will also explore linking this new project to existing pipeline networks in the region. The finance will be provided in full from Chinese banks to the Russian companies involved.
As agreed in the LoI, Genoil will be responsible for the design and construction of six million tpy of new refinery capacity in Chechnya. To facilitate this, Genoil will organise a large consortium of Chinese engineering and services companies, with many years of operational experience, to provide all the necessary support and project guarantees. In addition to project guarantees, Genoil will arrange for a leading Chinese insurance company to insure the entire project.
The LoI has been signed by the President of the Board of Directors of Grozneft, a former official in the administrative department of the Russian Federation. The Russian Government and the Ministry of Fuel and Energy of the Russian Federation, as well as other required ministries and departments will give their full support to this project to ensure timely completion. The project will be listed in a trade agreement, pact or co-operation agreement between Russia and China.
Thomas F. Bugg, Vice President of Genoil Canada, commented, "The negotiation of this LoI marks an important milestone from Genoil, demonstrating that we can act as a service provider as well as a technology provider. Building on our previous Letter of Intent from a Chinese bank in April of this year, this latest agreement further supports our commitment to develop sustainable energy sources, helping to solve the supply challenges we face now and in the future."
As with the project in the Middle East defined in the US$5 Billion LoI signed in 7 April 2016. Genoil will be the master contractor in charge and in control of the project. Fuel produced from the projects will be exported to China through secured long term contracts of up to 30 years.
Read the article online at: https://www.hydrocarbonengineering.com/refining/10112016/genoil-signs-letter-of-intent/