Rigworld Group and SulNOx Group entered into a collaboration agreement in December 2020 to develop the market for SulNOx Group’s fuel conditioners. SulNOx currently market two types of emulsifier that will be offered to customers in a range of industries including Mining, Shipping, Aviation, Logistics, Manufacturing, Power Plants, and Agriculture. The potential for the SulNOx technology is significant given that it offers a number of benefits including a reduction in toxic fuel emissions, fuel cost savings, and a reduction in engine maintenance costs.
The SulNOx technology currently consists of a stable of two fuel conditioner products which are manufactured under license by a world leading chemical manufacturer. One of the products is a diesel fuel conditioner and the other is an emulsifier for Heavy Fuel Oil. The target market for the diesel fuel conditioner will be diesel engine trucks and machinery as well as diesel powered generators.
Ghana has a significant and rapidly growing industrial base. Rigworld will look to introduce the SulNOx product and drive adoption across various industries, initially focusing on industrial companies like cement manufacturers and thermal plants. Rigworld Petroleum, a wholly owned subsidiary of Rigworld Group has its own fuel stations and plans to offer an emulsified diesel product to its customers with a view to persuading other oil marketing companies to introduce the SulNOx emulsifier to their customers. Rigworld has a number of customers in the mining sector which consume a lot of diesel fuel, and as such will be particularly interested in the cost savings offered by the SulNOx emulsifier.
Rigworld will look to develop markets for SulNOx across the African continent. There are a number of African countries with substantial and rapidly growing economies which will be targeted first. These include neighbouring countries in West Africa like Nigeria, Cote d’Ivoire, and Senegal. Rigworld will also look to drive adoption further afield in countries like South Africa, Kenya, and Uganda. The objective would be to essentially introduce the SulNOx fuel conditioners across the continent of Africa over the next few years.
Due to the lack of extensive rail infrastructure in Africa, a significant portion of heavy goods transport is done by road. There are therefore a number of logistics companies with substantial fleets of diesel trucks. This offers a sizeable market of trucking companies which will be interested in the SulNOx product due to the potential cost savings available.
The industrial landscape in Africa is rapidly growing. Economically progressive African countries like Ghana have embarked on extensive industrialisation programmes to drive rapid economic growth. There is therefore a proliferation of heavy industry and industrial power plants to support these programmes. These companies all use equipment and machinery that consume diesel fuel and therefore provide a sizeable target market for the SulNOx fuel conditioners.
The mining industry in Ghana is fairly mature with mining activity predominantly focused on the extraction of Gold, Diamonds, Manganese, and Bauxite. Ghana recently overtook South Africa to become the leading producer of Gold on the African continent. Mining companies consume large quantities of diesel fuel due to the number of heavy machinery utilised in their operations. Mining companies have a significant cost focus in addition to needing to comply with rigorous regulatory policies and demonstrate environmental credentials. The SulNOx offering is expected to be of great interest to a vast majority of the mining companies.
Ghana is one of the main shipping hubs in West Africa. The country boasts two major ports at Tema and Takoradi which support the shipping needs of Ghana and a number of landlocked countries neighbouring Ghana. There is therefore a fairly sizeable market for fuel conditioners in the shipping industry. Rigworld will look to leverage its relationships with international shipping companies and companies that provide bunkering services to introduce the SulNOx products to the shipping industry.
The Aviation industry in Africa is relatively small by international standards. The growing economic activity in the region and the new African Continental Free Trade Agreement (AfCFTA) signed among African countries to remove barriers and increase trade with each other is likely to drive increased air travel between African countries and from other destinations into Africa as this landmark trade agreement makes the markets across several African countries accessible from one location in Africa. This in turn will increase the consumption of aviation fuel and given the cost efficiency and environmental capabilities of the SulNOx product the prospects in the Aviation industry in Africa look promising.
The railway sector in Ghana has received a huge boost after the government recently announced $21.6bn worth of investment projects in the rail sector. The country plans to build extensive rail infrastructure across the various cities, towns, and villages to support a number of industries, including mining, manufacturing, and agriculture. It is expected that the railways will drive a huge increase in the consumption of diesel fuel which will be a boon to the target market for the SulNOx fuel conditioners.
Produced by the management of the Rigworld Group