In October 2006, Genoil and Hebei Zhongjie Petrochemical Group Company Ltd. (HZ) signed a Letter of Intent (LOI) to jointly build a hydroconversion upgrader at the HZ refinery in Nampaihe Town, Huanghua City, Hebei, in North Eastern China. The project is designed to upgrade heavy oil blend M180 and the residual oils from the refinery and build the first major hydroconversion upgrading facility in China, with a capacity of 20,000 barrels per day.

After signing a Memorandum of Understanding with HZ in February 2006, Genoil began engineering studies for a complete feedstock 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,  HZ shipped the heavy oil samples to the Genoil Two Hills, Alberta pilot facility. Genoil has successfully completed the test run.

The data gathered during this testing phase will allow Genoil to complete its feasibility study and determine the final catalyst selection, operating conditions and optimization of the Genoil GHU® process. Upon completion of the Front End Engineering and Design ("FEED") study Genoil is seeking project financing in North America and China.

The Hebei Zhongjie GHU® project is currently on schedule with an estimated completion and start-up date of late 2009 or beginning of 2010.

For more information please check our recent Press Releases and Investors Newsletter.