Freepoint Commodities LLC and Rigby Refining LLC have signed definitive contracts to form a joint venture to develop processing plants around the world to help meet the growing demand for International Marine Organization (IMO) 2020-compliant marine fuel.
The JV’s first project will be the design and construction of a 10,000-b/d fuel oil processing plant in the US Gulf Coast. The facility will be equipped with Rigby’s proprietary process to remove sulfur from fuel oil and produce low-sulfur, IMO 2020-compliant marine fuel, the companies said.
While Freepoint did not reveal a precise USGC location for the manufacturing site, the company did confirm it will provide the feedstock to and market production from the plant, which is scheduled for start-up sometime in 2021.
Further details regarding the JV’s future processing plants were not disclosed.
Beginning in 2020, the IMO will require that marine bunkers contain no more than 0.5 wt % sulfur. The current maximum is 3.5 wt % outside “emission control areas,” where the sulfur limit since 2015 has been 0.1 wt %.
Contact Robert Brelsford at [email protected].