Haiyitong Inc. (Hebei Zhongjie)

In October 2006, Genoil and Haiyitong Inc. (HYT) (formerly Hebei Zhongjie Petrochemical Group Company Ltd. (HZ) agreed to jointly build a 19,500 bpd Genoil Hydroconversion Upgrader at the refinery site in Nampaihe Town, Huanghua City, Hebei, in North Eastern China. The GHU unit for HYT was designed to process heavy oil and refinery residues.

HYT is a privately owned petroleum and chemical company part owned and operated by ZJSH refinery in Nampaihe town, Hebei China. The current refining capacity is 2.5 MT/Y.

The purpose of the project is to enable the refinery to use lower cost feed stock. Instead of buying light, sweet crude to refine, the refinery will be able to process a mixture of cheaper heavy, sour crude oil and the 10,000 bpd refinery residues. This process will result in significant cost savings to Haiyitong and a recurring revenue stream to Genoil.

Project Description:

• Installation of 1 MT/Y (19500 BPD) Genoil Upgrader in the ZJSH refinery.
• GHU which consists of the patented Genoil Hydroconversion Unit and an integrated gasificaiton & combined cycle (IGCC) section.
• GHU design to process a blend of refinery atmospheric residue and heavy crude (M-180).
• Based on Fixed Bed Technology, GHU converts heavy feed into naptha, diesel, and gasoil. Unconverted heavy end is used as IGCC feed.
• IGCC supply H₂ and all utilities requirements.
• All products integrate into existing refinery.

Genoil began engineering studies for a complete feed stock pilot testing. A Genoil delegation travelled to China to determine the correct feed for their GHU® facility and the appropriate plant configuration and integration into the existing refinery. After a testing agreement was signed in April 2007, HYT shipped the heavy oil samples to the Genoil Two Hills, Alberta pilot facility.

Results of the tests showed a significant improvement in the quality of the upgraded oil versus the feed stock after processing through the GHU®. After independent laboratory analysis, our engineering team completed the first level of engineering and design of the planned upgrading unit. A Chinese engineering firm conducted an economical feasibility (accuracy +/- 25%), and estimated the total cost of the project at US$170 million.

The GHU Upgrader for Haiyitong will combine the proprietary Genoil Hydroconversion Unit and an Integrated Gasification Combined Cycle unit (IGCC), which produces its own hydrogen to support the hydrogenation process and the utilities to run the facility, such as electrical power and steam. By integrating a gasification process, the overall upgrader becomes a truly bottomless, self-sufficient facility that is suitable to be added in the existing refinery complex.

The detailed engineering and procurement will start once financing is secured, and the estimated construction time two years.

The Genoil Hydroconversion Upgrader (GHU®) is a patented oil upgrading process that economically converts heavy, high-sulfur crude oil into light, low sulfur oil. This upgrader can process heavy oil and/or refinery residues, converting them into upgraded light crude, suitable for the use in existing refineries.

Genoil can increase profitability at refineries by enabling them to process cheaper and heavier oil, rather than more expensive sweet light crude oil. The GHU® process dramatically reduces sulfur and other contaminants, thereby helping refiners meet new environmental regulations for low sulfur fuels.

For more information please check our recent Press Releases and feel free to contact us in NY or the Middle East office.