TIDMQFI
RNS Number : 0670V
Quadrise Fuels International PLC
29 November 2019
29 November 2019
Quadrise Fuels International plc
("Quadrise", "QFI", the "Company" and together with its
subsidiaries the "Group")
AGM Update
Quadrise Fuels International plc (AIM: QFI) provides the
following business update ahead of the Company's Annual General
Meeting ("AGM") which commences today at 12:00 noon.
An updated corporate presentation will be provided shortly after
the conclusion of the AGM on the Company's website at
www.quadrisefuels.com.
Business Development Overview and Update
The Board believes that QFI has demonstrated staged progress
during the year in a number of areas that have enabled the Company
to increase the breadth and depth of the market opportunities it is
concurrently pursuing. As we indicated both at the time of the
interims and the preliminary results, this progress has not always
been as smooth, or as rapid as we would like, nonetheless this
approach is enabling QFI to be benefit from the skills, experience
and network of relationships from our various partners, with no
immediate cash cost and in a manner which leverages our in-house
business development capabilities to the best effect.
Funding:
We were delighted that, following the announcement of the
initial GBP2m tranche of the GBP4m Bergen funding, with strong
support from both existing and new shareholders, the Company was
able to secure funding of GBP4.5 million during Q3 2019 which will
enable QFI to continue its business development activities through
to the end of 2020 on the basis of current planned expenditure. A
further GBP2m of the Bergen funding is potentially available to
draw down from August 2020.
Key Business Development Updates:
-- Morocco - The Company's in-country representative has proven
to be very effective for Quadrise in Morocco - having been
instrumental in securing the agreement with the major chemicals
business to undertake an initial pilot trial at their manufacturing
facility which was announced earlier today. Pending the positive
outcome of this first stage, we would then seek to progress to a
larger-scale study and trials as a precursor to commercial
roll-out.
-- Freepoint Commodities - remains an important partner for QFI
and we remain in close contact on opportunities in Central and
South America. We expect they will be more valuable in terms of
assisting in the commercialisation of projects, rather than
identifying new ones. Freepoint also introduced QFI to Aleph
Commodities who we are working with in the Kingdom of Saudi Arabia
and Kuwait.
-- Redliner - have demonstrated a good understanding of MSAR(R)
technology and has arranged meetings with key parties within
Mexico, most recently in November 2019. This is a significant
opportunity for QFI, although we cannot overlook the challenges to
progress new projects rapidly in the region on a fully funded
basis, even for MSAR(R) projects that deliver material economic
gains in the short-term. The Company will follow up during 2019 and
into 2020.
-- European Oil Major - this work has not progressed materially
to date - further progress will, we believe, be dependent on the
development of major power or industrial customers for the
substantial MSAR(R) volumes that would be generated at the
refinery. We will continue to progress this market development work
- which will also be the key to enabling the samples to be provided
to enable full testing - given the operational challenges that
there have been with the sample lines.
-- European Refiner - the initial stage of testing has been
completed and visits carried out at both the client site and at
QRF. The next stage is currently underway - with the client
reviewing the economics of MSAR(R) compared with other IMO 2020
options, and if this proves positive, we expect to be developing a
plan for a site trial during H1 2020.
-- Maersk/Marine - discussions have continued in relation to the
Royalty Agreement alongside Maersk's revised approach to IMO 2020
compliance that includes the installation of scrubbers on a
significant number of their vessels. However, like most operators
in the sector, meaningful engagement is not likely until the
operational challenges of IMO 2020 readiness is concluded during Q1
2020.
-- Kingdom of Saudi Arabia - good progress has been made with Al
Khafrah as our new local partner and we expect high level
engagement with one of the major stakeholders shortly which will
help to define the route to enabling project delivery to commence
at the earliest possible time during 2020. This work includes the
opportunity to consider MSAR(R) manufacture in the Kingdom of Saudi
Arabia at lower cost.
-- Kuwait - the market in Kuwait is undergoing extensive change,
with a new grass-roots refinery nearing completion and a major
upgrading being completed which will effectively combine two
smaller, existing refineries. Recent meetings have confirmed that
there is an opportunity at the new refinery and we will undertake
initial feasibility work to present to the client team in Kuwait
once technical information is received.
-- Bitumina - we have continued to review opportunities to
access the residue sources and terminals available to Bitumina -
which will ultimately depend on accessing suitable consumers in the
power, marine or industrial markets.
-- Asia - we are continuing to review opportunities in Japan
through JGC and we are reviewing a refinery refuelling opportunity.
API Poly GCL undertook a study in China and concluded the market in
the power and industrial sectors was constrained by local coal and
gas, though opportunities in the marine market remain under review
- subject to the local operators' (COSCO, etc.) approach to
scrubbers in 2020. As a result of challenging economics versus gas
from LNG in combined-cycle plants and a change in its approach to
the use of its existing assets, we have reached mutual decision
with YTL Power Seraya to not renew the current MoU.
-- Merlin - we are continuing to review various heavy oil
opportunities that would benefit from the use of MSAR(R), though
none are at the stage of progressing to active projects at this
stage.
-- Nouryon - a new three-year agreement was signed on 8 October
2019 and recent discussions confirm that there are further
opportunities for closer collaboration between Quadrise and Nouryon
on project development.
Mike Kirk, Executive Chairman of QFI, said:
"We are very pleased to be able to provide a comprehensive
update to our shareholders at the 2019 AGM which demonstrates the
success of our strategy to broaden and deepen our business
development pipeline. With secured funding now in place we are
focused on translating this into tangible actions and trials that
will enable us to progress to commercial operations."
For additional information, please contact:
Quadrise Fuels International plc +44 (0)20 7031 7321
Mike Kirk, Executive Chairman
Jason Miles, Chief Operating Officer
Cenkos Securities plc +44 (0)20 7397 8900
Nominated Adviser
Dr Azhic Basirov
Ben Jeynes
Katy Birkin
Peel Hunt LLP +44 (0)20 7418 8900
Joint Broker
Richard Crichton
David McKeown
Shore Capital Stockbrokers Limited +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Fiona Conroy
FTI Consulting +44 (0)20 3727 1000
Public and Investor Relations
Ben Brewerton
Ntobeko Chidavaenzi
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Abuse Regulations (EU) No. 596/2014 prior to the release of this
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END
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