Genoil Inc.

Genoil Inc.

February 02, 2015 06:00 ET

Genoil Inc. and Hebei Zhongjie Petrochemical Sign a New 700 Million Dollar Contract for the Operation and Construction of a Heavy Oil Refinery Utilizing the GHU Technology

NEW YORK, NEW YORK--(Marketwired - Feb. 2, 2015) - Genoil (OTCBB:GNOLF) is pleased to announce it has signed a more comprehensive joint venture contract with Hebei Zhongjie Petrochemical Group Co. Ltd. ("HYT") for the establishment of a limited liability company, including a Genoil technology license agreement and trademark licenses. This contract establishes the structure of the new joint venture corporation which will be located in the Zhongie Industrial Park in the Hebei Province of the People's Republic of China.

The composition of the new company will be in accordance with the ratio of their respective equity interest - 70% for Genoil and 30% with HYT. Genoil has negotiated with HYT an increase in profit percentage from 50% announced on October 28th, 2014 to 60% currently. Genoil has already approached lending sources for the new refinery and is in discussions with interested parties.

The commercialization of Genoil's GHU within a large scale refinery represents a key stage in the Genoil GHU Development. A move into ownership is a major step forward for Genoil as until now the company has been principally a research & development firm. The new 1 million tons per year GHU based refinery will process heavy oil, low-grade atmospheric and vacuum-distillation bottoms and convert them into higher value, lighter distillates and finished transportation fuels [c5, c6, naphtha, light diesel fuel, heavy diesel fuel, vacuum gas oil, sulphur, and ammonia] for the Chinese and international markets. The new refinery will have pipeline access to the closest port.

Genoil owns and operates one of the largest and most advanced pilot & design test facilities in the world. Pilot design test and feasibility study were extensively conducted for this project by China Petroleum Engineering Co, Ltd - a division of China National Petroleum Corporation (CNPC), who just unseated ExxonMobil Corporation (XOM) as the third largest oil company in the world. This previous engineering work showed an internal rate of return on investment of over 55%.

"China is a dynamically growing market and is expanding its refinery networks. Their year over year oil import growth is 500,000 barrel per day. The recent Brent and WTI oil price plunge has not affected Genoil because our process is very profitable at current price levels. We can also take advantage of very favorable low steel prices. Genoil is in pole position in the fastest growing energy market in the world – a market that is heavily dependent on heavier feedstock. On my recent trip to China I was extremely impressed by HYT's capable and qualified management and their intense interest in this project. We are destined to be successful with a supportive partner like them." says Bruce Abbott, President & C.O.O. of Genoil.

About GHU Technology:

The main advantages underlying the GHU are economic. The GHU is based on improved mass transfer with lower operating pressures and temperatures than most conventional processes. Based on these milder conditions, the GHU provides improved yields of higher value products. The GHU has a much a lower capital and operating cost when compared to conventional processes. The GHU can desulfurize up to 99.5% in one pass, achieve 98% metals reduction, 99% viscosity reduction, and greater than 93% pitch conversation rate. In past testing the GHU reduced the sulfur content of the GHU diesel stream to 50 ppm and that was without any additional processing which is required for finished fuels. Residual component was reduced by 73% which is equivalent to a 259% increase in lighter distillates. The GHU plant was designed and built to develop the process on a larger scale. In a test with Gulf Canada Genoil successfully upgraded 8.5 API bitumen to 28 API crude.

Euro Asia Economic Forum:

Genoil was invited to speak at the 2015 Euro Asia Economic Forum in Dalian China. The Genoil presentation will be discussing details of this project at this conference. Genoil will give a corporate overview and discuss our China macro strategy.

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

Contact Information

  • Genoil Inc.
    (212) 688-8868