Quadrise Fuels International PLC Memorandum of Understanding with Bitumina (0970U)
March 27 2019 - 3:00AM
UK Regulatory
TIDMQFI
RNS Number : 0970U
Quadrise Fuels International PLC
27 March 2019
27 March 2019
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
Memorandum of Understanding with Bitumina
Quadrise is pleased to announce that the Company has entered
into a Memorandum of Understanding ("MOU") with Bitumina Industries
Limited ("Bitumina UK"), represented by Bitumina General Trading
LLC of Dubai ("Bitumina").
The Bitumina Group, led by Dr Bernd Schmidt, was founded nearly
100 years ago and is now a world leader in producing, trading and
supplying a wide range of bitumen products for use in road
construction. The Bitumina Group also has a business in Denmark
that manufactures and sells colloidal mills and plants for
bituminous products and road emulsion production, similar to the
unit used for MSAR(R) manufacture.
Bitumina UK is under incorporation for the purposes of
implementing Bitumina's intended vertical integration strategy in
the global bitumen sector from refinery production through to road
and other applications, including the development of the MSAR(R)
business with Quadrise under the MOU.
The non-binding MOU defines the structure through which Quadrise
and Bitumina will work together on an exclusive basis to seek to
progress selected MSAR(R) project opportunities ("MSAR(R)
Projects") in the Commonwealth of Independent States (including
Russia), Poland, Romania, and Vietnam to commercial agreements for
the production and supply of MSAR(R) fuel.
During an initial scoping phase, QFI will perform laboratory
pilot tests to establish emulsification parameters and formulations
for selected MSAR(R) Projects. The parties will make use of
existing Bitumina terminal assets and, in parallel, Quadrise will
fully test the applicability of Bitumina's technology and IP (as
well as that of affiliated companies and partners) at the Quadrise
Research Facility for applicability to future MSAR(R) fuel
projects. Under the MOU, the parties will also prepare detailed
techno-economic studies for MSAR(R) Projects involving selected
counterparties to establish the economics of MSAR(R) production and
supply to potential MSAR(R) users.
Subsequent commercial agreements will be structured so that
Quadrise and Bitumina will share profits of any project delivered
on the basis of the IP, resources and financial inputs of each
party utilising shared assets and infrastructure.
The term of the MOU is 24 months, after which time it will
expire unless mutually extended by the parties or superseded by
another agreement.
Commenting on this development:
Mike Kirk, Executive Chairman of QFI, said:
"We are delighted to sign this MOU with Bitumina to progress
commercial opportunities, initially in Eastern Europe. With an
initial focus on the Bitumina terminal assets, we look forward to
seeking to realise the commercial benefits from the complementary
nature of our businesses.
Utilising Bitumina's existing assets and in-depth market
knowledge, we hope to be able to progress to commercial terms with
third parties at the earliest opportunity and to deliver value to
shareholders of both QFI and Bitumina through the use of MSAR(R)
technology to supply large scale projects in the power and marine
sectors."
Dr Bernd Schmidt, Chairman & Managing Director of Bitumina,
said:
"Bitumina see extensive potential in deploying Quadrise's
MSAR(R) technology to add value to our terminal assets and
technology, and we look forward to working with Quadrise to advance
projects where MSAR(R) has clear economic and environmental
advantages over existing fuel sources and we believe that in
combination with our assets and market knowledge, a solid
commercialisation for production and distribution of competitive
MSAR(R) products on a global scale can be achieved.
We shall make all our resources and knowledge available to
Quadrise to allow them to commercialise their excellent MSAR(R)
product to clients, initially in Eastern Europe utilising our, and
our partners, production capacities and export infrastructure to
global markets, and we are certain that MSAR(R) will be a highly
viable fuel option for power and marine applications among others,
especially post IMO 2020."
For further information, please refer to the Company's website
at www.quadrisefuels.com, or contact ir@quadrisefuels.com or
phone:
Quadrise Fuels International Plc
Mike Kirk, Executive Chairman +44 (0)20 7031 7321
Jason Miles, Chief Operating Officer
Nominated Adviser
Cenkos Securities plc
Dr Azhic Basirov +44 (0)20 7397 8900
Ben Jeynes
Katy Birkin
Joint Brokers
Peel Hunt LLP
Richard Crichton +44 (0)20 7418 8900
Ross Allister
Stockdale Securities
Andy Crossley
Daniel Harris +44 (0)20 7601 6108
Public & Investor Relations
FTI Consulting
Ben Brewerton +44 (0)20 3727 1000
Ntobeko Chidavaenzi
For further information about Bitumina, please refer to their
website at www.bitumina.co.uk
Notes to Editors
QFI is the supplier of MSAR(R) 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 power generation, shipping, steam and refining
industries.
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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