Genoil Inc.
OTC Bulletin Board : GNOLF

Genoil Inc.

November 07, 2007 10:42 ET

Genoil Inc. and Hebei Zhongjie Petrochemical Group Company Announce Results of Heavy Oil Upgrading Test

EDMONTON, ALBERTA--(Marketwire - Nov. 7, 2007) - Genoil Inc. (TSX VENTURE:GNO) (OTCBB:GNOLF) and Hebei Zhongjie Petrochemical Group Company Ltd. ("HZ") are pleased to announce the result of the successful test run of HZ's heavy crude and residual oil blend using the patented Genoil Inc. GHU® technology.

The results of the pilot plant testing for the proposed Genoil 20,000 BPD GHU® upgrader met the goals for the upgraded synthetic crude product. Genoil is very pleased with the results as outlined below and looks forward to completion of the FEED (Front End Engineering and Design study as the next step in moving the project forward. A delegation from Genoil will be in China in December in order to present the final results and work with HZ on the planned integration of the GHU® into the existing refinery. During the pilot plant testing, Genoil processed the blended refinery residue and heavy crude through the GHU®, resulting in a decrease of the sulphur content by 91.6% (0.062% in GHU® product stream), a decrease in nitrogen content by 45.9%, and a decrease in metals content by 86.4%. Additionally, the GHU® increased the API from 12 API to 22 API before heavy bottoms removal for gasification. Genoil expects the calculated final API of the upgraded crude to be in the range of 27 to 30 once the heavy bottoms are separated and sent to gasification where the syntheses gas will be used in the new facility to produce hydrogen, power and steam.

James Runyan, Genoil's Chief Operating Officer, stated: "The blended feed was upgraded and contaminants such as sulphur and nitrogen were reduced, delivering a suitable product for the new distillation columns downstream of the GHU® upgrader and will ensure adequate vacuum gas oil (VGO) feed supply to HZ's new No. 2 Fluid Catalytic Cracking Unit (FCCU). We expect this to add 20,000 BPD of capacity and ensure feed stock for the new FCCU now under construction. We are very pleased with the test results from our laboratory and we have also sent separate samples to a laboratory in China for a second round of testing and verification of the GHU® upgrading results."

Yu Guo Chen, Vice President Hebei Zhongjie Petrochemical Group Co. Ltd., stated: "We are very excited about the results of the pilot plant testing and laboratory results. We are looking forward to completing the work now underway and towards Genoil's visit to China in December, where we anticipate finalizing the design and impact on our refinery and petrochemical factory."

About Genoil

Genoil Inc. is an international engineering technology development company based in Alberta, Canada, that develops innovative hydrocarbon, oil and water separation and marine technologies for the oil and gas and commercial marine industries.

ADVISORY: Certain information regarding the company, including management's assessment of future plans, contract values, completion 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, including 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.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Further information on potential risk factors that could affect the company's financial results can be found in the company's Reports filed with the Securities and Exchange Commission and with the Canadian Securities Administrators.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Genoil Inc.
    James Runyan
    Chief Operating Officer and Executive Vice President
    (780) 416-5590