The Axial Vector Energy Corp. (AXVC.PK) Petrosonics joint venture offers the worldâ€™s oil processing industry a technology and cost savings that is sorely needed. Axial Vectorâ€™s earlier announcement that it has teamed up with Petrosonics to form a joint venture company named Petro-AVEC means that Petrosonicsâ€™ unique sulfur removal process will now have the backing to be marketed worldwide. Axialâ€™s AVEC Acquisitions subsidiary is contributing nearly $7 million to the venture to help market and continue development of the technology.
The innovative process uses high power ultrasound to reduce sulfur, nitrogen, and trace metals in oil. A side benefit is the simultaneous decrease in oil density and hydrogen loss. Put simply, the net result is a product that is worth more, at a cost far less than competing technologies. Petrosonics owns all of the significant intellectual property associated with the technology, which effectively covers more than half of all crude oil produced.
AVEC Chairman Ahmed Khalifa has touched on the cost savings potential the process represents to worldwide oil refiners: â€œTesting results at one major state oil company owned refinery, utilizing the Petrosonics fractionation/desulphurization process, showed annual per stream cost savings of in excess of $54 million and a per barrel reduction from $4.00 to $1.00.â€
The economics of the technology is important, since there is increasing pressure by governments around the globe to reduce sulfur emissions from automotive fuels. Itâ€™s especially significant for small to mid-sized refineries, for which alternative sulfur reduction approaches, such as hydrotreatment, are not cost effective. In addition, the new technology can be applied to multiple fuels, including gasoline and diesel.
The result is a new way to save the environment while saving money, a double-hitter thatâ€™s impossible to ignore.
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