Extension of Contracts with AkzoNobel

RNS Number : 7467J

Quadrise Fuels International PLC

14 September 2016

 

14 September 2016

Quadrise Fuels International Plc

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

Extension of contracts with AkzoNobel,

 providing on-going support for global MSAR® projects

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 tons per annum) for the global shipping, refining and power generation industries.

The Company is pleased to announce it has extended two contracts with AkzoNobel group companies ("AkzoNobel") for the exclusive purchase and supply of goods and services, and for the continued exclusive joint development of emulsion fuels.

These contracts, originally signed in November 2013, replaced the original Alliance Agreement between Quadrise and AkzoNobel that was entered into in 2004.  The contract extensions ensure continuity and on-going support from AkzoNobel for the commercialisation of MSAR® projects globally, and will now run until at least November 2018.

Commenting on this development:

Mike Kirk, Executive Chairman of QFI, said:

"The extension of these agreements with our core technology partner, AkzoNobel, reinforce the commitment of both parties to commercialising the global MSAR® business. Our long-term relationship with AkzoNobel continues to underpin our ability to move the Company towards long-term commercial revenues as our major projects evolve."

Staffan Asplund, R&D Director of AkzoNobel Surface Chemistry, said:

"We are excited about the recent developments around the MSAR® technology and  pleased about the extended agreements between AkzoNobel and QFI. This solidifies a long-standing partnership that has led to remarkable technical progress. It is also a great example of how a unique and customized surfactant system is the essential ingredient behind a revolutionary fuel technology that will benefit several industries in the near future."

Background to the AkzoNobel Agreements:

Quadrise International Limited (QIL), the 100% owned operating subsidiary of QFI, is the contracting party for both agreements originally signed in November 2013.

Co-operation and Exclusive Purchase and Supply Agreement

This agreement between QIL and AkzoNobel Surface Chemistry AB ("ANSC") defines the commercial relationship relating to the purchase and supply of goods and associated technical services to projects in development. QIL acquire or facilitate the supply of MSAR® Manufacturing Units directly from suppliers for sale to refiners. For fuel applications QIL buy goods such as emulsifiers exclusively from ANSC, which ANSC supply exclusively to QIL. QIL supply goods and services directly to refiners licensed by QIL to use Quadrise MSAR® Technology. The agreement term has been extended for a further two years, expiring on 12 November 2018 unless extended by the parties.

Joint Development Agreement

This agreement between QIL and AkzoNobel Chemicals BV deals with joint technical programmes that support new business opportunities and are principally focussed on the formulation and processing of novel fuel emulsions to optimise performance and cost.

Intellectual Property arising from these programmes (including past work such as MSAR® Marine fuels development) is jointly owned.  The agreement is exclusive in the field of emulsion fuels research and development.  The agreement extension provides joint support for a number of specified projects now up to 10 November 2018. The overriding term of the agreement is, however, evergreen, subject to 12 months' notice for termination by either party.

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

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 Ltd
Dr Azhic Basirov	[phone]
Ben Jeynes
Broker
Peel Hunt LLP
Richard Crichton	[phone]
Ross Allister
Public & Investor Relations
FTI Consulting
Ben Brewerton Sara Powell	[phone]

 

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