Genoil, along with consortium partner Shaanxi Yanchang Petroleum Group subsidiary Beijing Petrochemical Engineering (BPEC) have received $5bn letter of intent to cover the initial cost of an upgrade project in Middle East.

The $5bn letter of intent, which has been secured from one of the largest banks in China, is intended to fund the development of an initial 500,000 barrel per day (bpd) project planned to be built in the Middle East.

The consortium is planning to invest between $35 and $50bn to build a 3.5 million bpd upgrading project featuring Genoil’s field upgrader (GHU) environmentally friendly technology.

Genoil said that the latest financing, however, will be subject to a number of conditions and approval of the contract terms by all parties.

The Genoil’s GHU technology is designed to convert heavy crude oil, bitumen, atmospheric residues, and vacuum residues into lighter crude which will transported by pipeline eliminating the use of diluent.

Capable of reducing the carbon content in crude oil, the technology can remove sulfur and nitrogen that cause greenhouse gases.

Additionally, the GHU can increase the light products yield while reducing the residual portion of a heavy crude stream. This allows for production of a much more desirable refinery feedstock, the company added.

In January 2016, Genoil and BPEC have agreed to provide engineering procurement and construction (EPC) services for Genoil GHU projects besides developing sales and marketing for the technology.

In particular, BPEC will serve as Genoil’s EPC contractor.