Freepoint Commodities and Rigby Refining announced the signing of definitive contracts to form a joint venture to develop facilities around the world to help meet the growing demand for IMO 2020 compliant marine fuel.
The first project of the joint venture will be to design and build a 10,000 barrel per day fuel oil processing facility in the US Gulf Coast, which will employ the Rigby Process to remove sulphur from fuel oil and produce IMO 2020 compliant marine fuel. Freepoint will provide the feedstock to the facility and market the facility's production. The unit is expected to commence operations in 2021.
David Messer, CEO of Freepoint, said: "We are excited to add this strategic asset to our portfolio. The new IMO 2020 regulations requiring less sulphur in marine fuel have created a global need for such facilities to ensure there is adequate compliant fuel available to the shipping industry.”
“Freepoint is committed to providing its customers with economic solutions in a rapidly changing energy market. Partnering with Rigby on this joint venture provides Freepoint with access to Rigby's state-of-the-art technology, and allows us to serve our customers around the globe with enhanced capabilities."
"We look forward to working with Freepoint on this project," said Michael Moore, CEO of Rigby.
"Rigby's proprietary solution to create patented IMO 2020-compliant fuels is unique and will likely be a preferred fuel for shippers due to its superior properties in comparison to blends, distillate-based fuels and other low sulphur marine fuel options. By combining Rigby's technological know-how with Freepoint's expertise in the commodities and finance markets, we aim to be a leader in providing low sulphur fuel to satisfy global demand."
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