Vertoil
Copyright© 2020 Vertoil Holdings, LLC
Vertoil
Advantaged Marine Gas Oil
Advantaged Marine Gas Oil
Opportunity
Effective January 1, 2020, the global limit on sulfur content for all marine fuels will be lowered dramatically, sending shockwaves through global refined-product markets while widening margins and differentials.
The volume of oil demand affected by this change is significant. Demand for high-sulfur fuel oil for ship bunkers was 3.5 million barrels per day in 2018. According to McKinsey & Company, “The global refining system is not yet equipped to make this volume at 0.5 percent sulfur once the regulation goes into effect.”
Most refiners and shipping companies are still trying to come to grips with the potential threats and opportunities that will emerge as a result of this regulation.
Solution
• Vertoil, LLC (“Vertoil”) aims to fill the surging demand for cost-effective, compliant marine fuel in a post-IMO-2020 world. Led by a team of proven industry experts, Vertoil was formed and capitalized to develop, construct, and operate facilities that process used lubricating oil (“ULO”) into low sulfur marine gas oil (“MGO”).
• Vertoil utilizes proprietary technology that provides an economically advantage solution to the production of MGO.
• We use low cost feedstock (ULO)
• We convert ULO to MGO at >80% yield rates
• We use lower cost distillation vs. hydrotreating processes
• Our low operating cost and low capital cost profile allows for distributed scale sized facilities that can be rapidly deployed.
• Our facilities will include both brownfield developments and expansions/upgrades to existing plants all located within coastal ports.
Opportunity
Effective January 1, 2020, the global limit on sulfur content for all marine fuels will be lowered dramatically, sending shockwaves through global refined-product markets while widening margins and differentials.
The volume of oil demand affected by this change is significant. Demand for high-sulfur fuel oil for ship bunkers was 3.5 million barrels per day in 2018. According to McKinsey & Company, “The global refining system is not yet equipped to make this volume at 0.5 percent sulfur once the regulation goes into effect.”
Most refiners and shipping companies are still trying to come to grips with the potential threats and opportunities that will emerge as a result of this regulation.
Solution
• Vertoil, LLC (“Vertoil”) aims to fill the surging demand for cost-effective, compliant marine fuel in a post-IMO-2020 world. Led by a team of proven industry experts, Vertoil was formed and capitalized to develop, construct, and operate facilities that process used lubricating oil (“ULO”) into low sulfur marine gas oil (“MGO”).
• Vertoil utilizes proprietary technology that provides an economically advantage solution to the production of MGO.
• We use low cost feedstock (ULO)
• We convert ULO to MGO at >80% yield rates
• We use lower cost distillation vs. hydrotreating processes
• Our low operating cost and low capital cost profile allows for distributed scale sized facilities that can be rapidly deployed.
• Our facilities will include both brownfield developments and expansions/upgrades to existing plants all located within coastal ports.
Copyright© 2020 Vertoil Holdings, LLC