Freepoint Commodities and Rigby Refining have agreed to form a joint venture to develop facilities around the world to help meet the demand for IMO 2020-compliant marine fuel.
The first project of the joint venture will be to design and build a 10,000 barrel a day (b/d) fuel oil processing facility in the US Gulf Coast, which will use a process developed by Rigby 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 start operations in 2021.
In a statement issued yesterday (7 October), David Messer, the 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.’
Michael Moore, the CEO of Rigby Refining, added: ‘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 sulfur marine fuel options.’