AGM Update

RNS Number : 7464Q

Quadrise Fuels International PLC

02 December 2016

 

2 December 2016 

Quadrise Fuels International plc

("Quadrise", "QFI'' or the "Company")

AGM Update

Quadrise Fuels International plc (AIM: QFI) is the emerging supplier of MSAR® emulsion technology and fuel, enabling a low-cost alternative to heavy fuel oil (one of the world's largest fuel markets, comprising over 450 million tonnes per annum) in the global shipping, refining and power generation markets.

Further to the Company's announcements on 30 September 2016, Quadrise is pleased to provide a further update on its key projects and associated operational and business development, ahead of its Annual General meeting which is being held today.

Marine

QFI's marine project continues to make excellent progress. MSAR® fuel is produced in regular campaigns and transferred to the nominated Maersk vessel by a bunker barge in the Bay of Algeciras. The Maersk vessel has been continuing to burn MSAR® successfully on its regular scheduled route, whilst outside of the European Emission Control Area.

The feedback received from Maersk on the performance of MSAR® fuel continues to be positive and based on the substantial progress to date we anticipate that an interim assessment will be possible in the Spring of 2017 and that the trial should be completed around the middle of the year. 

Power

Since the signature of the Memorandum of Understanding ("MoU") in the Kingdom of Saudi Arabia in August 2016, we have been working collaboratively with all parties to move this large-scale production to combustion trial forward. Significant management resource has been dedicated to this work and, based on our latest discussions with our partners, we anticipate being able to enter into formal contracts during the first-half of 2017 and commence the trial during the second-half of the year.

Other Developments

In September we extended our agreements until November 2018 with our technology partner, Akzo Nobel, for the exclusive purchase and supply of chemicals for the production of MSAR® and the exclusive joint development of emulsion fuels. These agreements underpin our ability to migrate the business to long-term commercial revenues.

In October 2016, we renewed our MoU with YTL PowerSeraya for a further year, which confirms the continued opportunities to develop both the power and marine markets in Singapore.

After a positive review of the first year of our arrangement with the University of Surrey, we renewed the contract in November 2016 for a further year to provide Quadrise with continued and cost effective access to their world class research facilities.

We are also delighted to announce that we have appointed Martin Verle as General Manager Marine, commencing in January 2017.  Martin is a Marine Engineer and completed a Global Leadership course at IMD and has over 26 years of experience in the marine industry, most recently as Global Services Director for Veritas (formerly DNV) Petroleum Services ("VPS").  Prior to this, Martin held senior positions with VPS globally and has worked directly for Sun Cruises, V. Ships, A.P. Moller-Maersk, and Souter Shipping.   

This progress is supported by the strengthened balance sheet following the successful fundraising in October 2016, the Open Offer element of which was 2.5 times oversubscribed demonstrating the continuing confidence and strong support from QFI shareholders.

Mike Kirk, Executive Chairman of Quadrise, said:

"This has been a hugely important year in the development of Quadrise.  Operationally our programmes continue to progress to plan, we have strengthened the team, and we were very encouraged by the strong positive response to our recent Placing and Open Offer.  The combination of these elements has clearly positioned the Company to progress to commercial operations during 2017 and we look forward to reporting continued progress during the year."

For further information, please refer to the Company's website at www.quadrisefuels.com or contact:

Quadrise Fuels International Plc
Mike Kirk, Executive Chairman	[phone]
Hemant Thanawala, Finance Director
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance Limited
Dr Azhic Basirov	[phone]
Ben Jeynes
Broker
Peel Hunt LLP
Richard Crichton	[phone]
Ross Allister
Chris Burrows

Public & Investor Relations
FTI Consulting
Ben Brewerton	[phone]
Sara Powell

Notes to Editors

QFI has developed MSAR® as a less expensive, cleaner synthetic HFO. Produced using QFI's proprietary technologies and services, MSAR® offers both producers and consumers of the fuel significant economic and environmental advantages. MSAR®, an oil in water emulsion, is made by mixing the residue stream from an oil refinery with water and specialised chemicals in a proprietary production process, instead of diluting the residuals with high value distillate products as in the production of HFO.

QFI acts as the technology and service partner to both the producer and the consumer and aims to create value both through licence revenues from the production of fuel and the sale of the chemicals and MSAR® manufacturing systems. The core technology has been developed jointly with AkzoNobel - one of the world's leading surface chemistry companies.

The two largest markets for the use of MSAR® as a low cost, efficient and environmentally friendly synthetic HFO are marine bunkering and power generation.  Significant work has been carried out to demonstrate the proof of concept in both end-user markets and current work is focused on commercial scale trials the successful conclusion of which will be a significant milestone towards QFI developing sustainable commercial revenues.

 

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