Re Agreement

RNS Number : 2954X

Quadrise Fuels International PLC

23 June 2008

 



23 June 2008

Quadrise Fuels International plc

Quadrise announces a major commercial demonstration in Lithuania

Quadrise Fuels International plc ('QFI') announces that it has entered into an agreement with AB Lietuvos Elektrine, the Lithuanian power company, to undertake a major commercial demonstration at its Elektrenai plant using Multiphase Superfine Atomised Residue (MSAR®) emulsion fuel. MSAR® is a low cost substitute for conventional heavy fuel oil for use in power generation plants and industrial diesel engines. It is manufactured by QFI under licence from Akzo Nobel. 

QFI has also agreed terms with AB Mazeikiu Nafta, the Lithuanian refinery owned by the Polish energy company PKN Orlen, to manufacture the MSAR® at its facilities using heavy residues from the refinery. The MSAR® offtake will then be sold on to Lietuvos Elektrine's Elektrinai plant.

Specialist staff from QFI and Akzo Nobel have been working with the Mazeikiu Nafta team on their refinery site to install the MSAR® Manufacturing Unit for the emulsion fuel supply to the commercial demonstration at the Elektrenai plant. 

Mazeikiu Nafta on 20 June 2008 announced their association with QFI and advised that the refinery 'based on preliminary estimates would be able to produce about 350 thousand tons of emulsified fuel oil per year for AB Lietuvos Elektrine'. Mazeikiu Nafta's announcement also states that 'AB Lietuvos Elektrine intends to burn the fuel in Blocks No. 7 and 8 with a total power capacity of 600 MW'.

Commenting, Bill Howe, CEO at QFI, said: 'This commercial demonstration will validate the large scale application of MSAR® emulsion fuel technology. It will also demonstrate the major potential value offered by MSAR® technology to the oil refining industry in terms of enhanced profitability, whilst providing a significantly lower cost fuel oil to the power sector. Rising oil and gas prices have further emphasised the benefits of MSAR® fuel for clients dependent on liquid fuels and natural gas.'

Bill Howe added: 'We have received tremendous support and encouragement from Akzo Nobel, Mazeikiu Nafta and Lietuvos Elektrine and are making great progress in Lithuania. On completion of the commercial demonstration QFI expects to conclude long term contracts for the first major large scale application of MSAR®fuel technology in Europe. In addition, QFI continues to progress a range of commercial prospects in the Americas'.

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For additional information, please contact:

Quadrise Fuels International                                   [phone]

Bill Howe/ Laurie Mutch

Smith & Williamson Corporate Finance Limited        [phone]

Azhic Basirov / Siobhan Sergeant

Capital MS&L                                                        [phone]

Steffan Williams/ Penny Freer/ Jennifer Martin

www.quadrisefuels.com/

The Mazeikiu Nafta announcement can be found on their web site:www.nafta.lt/en/

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 cost effective product whilst using the least desirable heavy crudes and refinery derived residues.

The emulsion fuel product, termed MSAR® (Multiphase Superfine Atomised Residue), has superior combustion characteristics to HFO and coal, and has superior environmental performance in respect of greenhouse emissions.

In addition to providing operating cost savings MSAR®may contribute to the asset value of oil field resources, power plants and refining units by extending their economic life.

MSAR® is manufactured from the heaviest, most viscous and least valuable elements of the oil barrel. This means that it can be supplied at a discount to conventional heavy fuel oil and be competitive with gas. 

 

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