Agreement Update

RNS Number : 8127A

Quadrise Fuels International PLC

07 August 2008

 



7 August 2008

Quadrise Fuels International plc

Quadrise Fuels International plc ('QFI'), the producer of emulsion fuel as a low cost substitute for conventional

heavy fuel oil for use in power generation plants and industrial diesel engines, today advises that subsequent to its

23 June announcement, progress on its commercial demonstration project with the Lithuanian refinery AB Mazeikiu

Nafta and AB Lietuvos Elektrine, the Lithuanian power company, is proceeding as planned. 

In June the Company announced that it had entered into an agreement with AB Lietuvos Elektrine to undertake a

major commercial demonstration at its Elektrenai plant using Multiphase Superfine Atomised Residue (MSAR®)

emulsion fuel.   

Commenting on progress, Bill Howe, Chief Executive Officer at QFI, said: 'We have now manufactured

approximately one third of our 20,000 tonne contractual commitment of MSAR®. Of this we have transported 4,000

tonnes from Mazeikiu to the Elektrenai plant, where an initial test burn was successfully completed on 25 July.' 

Following the successful test burn QFI has now commenced manufacture of the outstanding contractual volume of

MSAR® which will be delivered to the Elektrenai plant during August. A longer term commercial burn at Elektrenai

is expected to commence during September. 

The Company has installed a temporary MSAR® manufacturing facility at the Mazeikiu Nafta refinery and, together

with technology licensor Akzo Nobel, is providing the operations team and technical services support for the

manufacturing operation, supply chain handling, combustion systems and quality assurance.

Bill Howe added: 'Since completion of the initial phases, operations on the commercial demonstration have

progressed well, both in terms of reliability of the manufacturing facility and quality assurance of the

MSAR® fuel from the refinery to the power plant. Our confidence in the successful outcome of this demonstration

remains high, as do our expectations of realising both a long term commercial arrangement for establishment of the

full commercial plant and a long term supply agreement for our fuel. We also continue to be encouraged by the

ongoing co-operation and support displayed by our partners Akzo Nobel and our clients Mazeikiu Nafta and

Lietuvos Elektrine.'

ends

For additional information, please contact:

Quadrise Fuels International                                                                [phone]

Bill Howe                    

Smith & Williamson Corporate Finance Limited                                  [phone]

Azhic Basirov

Siobhan Sergeant

Capital MS&L                                                                                        [phone]

Penny Freer

James Madsen

www.quadrisefuels.com/

Notes to Editors

Quadrise Fuels International plc ('QFI') produces an emulsion fuel as a low cost substitute for conventional heavy

fuel oil ('HFO') for use in power generation plants and industrial diesel engines.

In manufacturing its fuels, QFI uses the least valuable elements of the oil barrel, thus providing a lower cost liquid

fuel product which is also competitive with natural gas.

The emulsion fuel product, termed MSAR® (Multiphase Superfine Atomised Residue), has superior combustion

characteristics to conventional heavy fuel oil, achieving complete carbon burn-out and producing lower NOx

emissions.

 Oil refiners applying the technology enjoy enhanced value realisation for their least valuable residues and the

 potential to avoid very heavy capital expenditure on heavy oil upgrading facilities. 

 

END

 

 

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