Update re Combustion Boiler Trial Project

RNS Number : 9756I

Quadrise Fuels International PLC

26 March 2018

 

26 March 2018

Quadrise Fuels International plc

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

Update re Combustion Boiler Trial Project

Quadrise Fuels International plc (AIM: QFI) provides the following update on the planned combustion boiler trial project in the Kingdom of Saudi Arabia ("KSA"). 

The majority of agreements to carry out the MSAR^® 'Production to Combustion' trial have now been signed, and during the first quarter of 2018, Quadrise commissioned the MSAR^® manufacturing facility on site at the refinery counterparty. However, the signing of the fuel supply agreement between the KSA oil company and the refinery counterparty has not yet been achieved due to a delay in the KSA of obtaining a back-to-back trial agreement between the KSA oil company and the KSA electricity company respectively. 

As a result of this delay within the KSA, the Company has been informed that the refinery counterparty has provided notification to the KSA oil company that if the required signatures are not obtained by 1 April 2018, then the refinery counterparty may no longer be in a position to support the production of MSAR^® for supply to the KSA trial. 

Quadrise understands from the KSA oil company that obtaining these signatures prior to 1 April 2018 is now unlikely and therefore that the project may not proceed as planned - as this was reliant on the fast-track solution offered by Quadrise and its refinery counterparty, when the KSA oil company was not able to secure in-Kingdom production opportunities as originally envisaged. 

As it is uncertain that the trial project will be going ahead as originally planned, Quadrise is now focussing its resources on other activities that can deliver meaningful progress. Further options to continue this project will be explored in the event that the production to combustion trial project as originally planned can no longer proceed, but all have uncertain outcomes in the short-term.

Further announcements will be made, as appropriate, in due course.

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

For additional information, please contact:

Quadrise Fuels International Plc
Mike Kirk, Executive Chairman	[phone]
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance Limited
Dr Azhic Basirov	[phone]
Ben Jeynes
Katy Birkin
Broker
Peel Hunt LLP
Richard Crichton	[phone]
Ross Allister
Public & Investor Relations
FTI Consulting
Ben Brewerton	[phone]
Sara Powell

Notes to Editors

QFI is the supplier of MSAR® emulsion technology and fuels, a low cost alternative to heavy fuel oil (one of the world's largest fuel markets, comprising over 450 million tons per annum) in the global shipping, refining and steam and power generation industries.

 

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