TIDMQFI
RNS Number : 2380D
Quadrise Fuels International PLC
28 June 2021
28 June 2021
Quadrise Fuels International plc
("Quadrise", "QFI", the "Company" and together with its
subsidiaries the "Group")
Update on bioMSAR (TM) and MSAR(R) projects
Quadrise , the supplier of MSAR(R) and bioMSAR (TM) emulsion
technology and fuels, low-cost, cleaner alternatives to heavy fuel
oil and biofuels, is pleased to provide an update on progress in
relation to bioMSAR(TM), the Company's new cleaner, low carbon
fuel, and our active MSAR(R) projects with Mediterranean Shipping
Company S.A. ("MSC"), our industrial client in Morocco, and
Greenfield in Utah.
Highlights
-- Quadrise is seeing increasing interest in bioMSAR(TM) from
all segments of the energy market that are targeted.
-- MSC - bioMSAR(TM) testing significantly accelerated, with
this to be the first fuel tested during the LONO programmes.
-- Morocco - 60mt of MSAR(R) fuel to be manufactured at a
bitumen production facility in Norway and shipped directly to Site
B. Quadrise on site this week for preparatory work. Current plans
are for the trial to be completed in Q3 2021, together with the
completion of the Site A feasibility study.
-- Utah - Greenfield samples taken and should be shipped to
Quadrise this week. Once received at QRF, confirmatory Proof of
Concept testing should complete within 3 weeks for both MSAR(R) and
bioMSAR(TM).
bioMSAR(TM) Outlook
Quadrise is seeing increasing interest in bioMSAR(TM) from all
segments of the energy market with the momentum towards zero carbon
being quicker and broader than was envisaged a few months ago. This
is creating significant demand in the sector for low carbon
emissions and renewable fuels, incentivising Quadrise to further
accelerate its bioMSAR(TM) testing, development and production
plans.
The successful placing and open offer in March 2021 allowed us
to advance the medium-speed 4-stroke Wärtsilä engine testing at VTT
in Finland, as well as further planned performance and emissions
optimisation testing with Aquafuel Research Ltd ("Aquafuel"). As
part of this accelerated timetable, 5 tonnes of bioMSAR(TM) was
produced at the Quadrise Research Facility ("QRF") and shipped to
VTT in May 2021, with testing now completed. Initial feedback is
positive and the report is expected to be received by QFI in July
2021. Further testing at Aquafuel is expected to commence later in
July 2021, following enhancements to our high-speed 4-stroke test
engine.
Quadrise is delighted with the progress being made on both
third-party testing and development and the continuing
complementary development work at QRF, which includes fuel additive
formulation and performance optimisation for our unique biofuel.
This work is integral for planning for larger commercial scale
bioMSAR(TM) testing during the next twelve months with MSC and
Greenfield, as detailed below.
Quadrise is undertaking detailed analysis of the crude glycerine
market, which will be critical for larger scale bioMSAR(TM)
commercialisation and this includes collaboration with Aquafuel,
who have significant experience in glycerine use as a fuel in
diesel engines. Quadrise is also evaluating future production
options, in a joint project with Aquafuel and a team at the
University of Greenwich, led by Professor Pat Harvey. This will
include an investigation into algal production of glycerine, which
we believe may offer future potential to provide large volumes of
renewable glycerine if crude glycerine availability becomes a
limiting factor for bioMSAR(TM). In parallel, our RDI team is
testing low-carbon future fuels, including lignins, as part of our
net zero solution by 2030 activities.
We are pleased to have renewed our long-standing relationship
with Professor Spence Taylor, who has recently joined our RDI team.
His significant experience as professor of Surface and Colloid
Chemistry at the University of Surrey will enhance our RDI
capabilities as we focus more resources on future fuels.
MSAR(R) Outlook
In certain markets we are seeing that whilst the swing towards
renewables and lower emission options is accelerating interest in
bioMSAR(TM) and increasing the size of its target market, it is
also creating some headwinds to hydrocarbon-based fuels and
MSAR(R), despite the material cost, performance and environmental
benefits of MSAR(R) over project lifetimes. This phenomenon is
being exacerbated by refinery reconfigurations in response to the
changes in demand fundamentals driven by IMO 2020 and the COVID
pandemic. Whilst not directly impacting our current trial and
project activities, the result of these trends is that MSAR(R)
economic benefits for refiners have reduced, and in some cases
become marginal, temporarily. We and others believe that this
position will change when distillate demand increases and the
HFO-distillate spread widens. In the meantime, we are working
diligently to demonstrate the long-term benefits of MSAR(R)
projects and, where there is a strong pull for bioMSAR(TM), looking
at opportunities to develop commercial supplies of both fuels in
parallel on an accelerated basis. An update on progress across our
key MSAR(R) projects is provided below:
MSC
Under the JDA with MSC Shipmanagement we are finalising the
preparatory work to enable LONO trials aboard MSC container
shipping vessels. This work has taken a little longer than
anticipated, as the availability of OEM and Class Society resources
has been limited at times and the marine sector is stretched due to
COVID and various evaluations and tests of future fuel options,
though the project team expect these issues to be resolved
imminently. The most significant change during this period has been
a desire from MSC to see bioMSAR(TM) testing significantly
accelerated and for this to be the first fuel tested during the
LONO programmes. During H1 2021 we engaged two highly experienced
marine and mechanical engineers to work on the MSC project. The
engineers have detailed knowledge and experience of MSAR(R)
performance from diesel engine testing for stationary power plants
and marine vessels. Project activities in 2021 with MSC are as
follows:
-- Planning and preparatory work to enable bioMSAR(TM) and
MSAR(R) LONO trials to take place on vessels powered by a MAN ME
engine and a Wärtsilä Flex engine.
-- Procurement of fuel booster systems and the process of
preparing the vessels and the fuel production site in the second
half of 2021 to enable LONO trials to commence at the earliest
opportunity. This work will continue during the remainder of 2021,
with a number of options being investigated in parallel to reduce
cost, time and risk.
-- Once trial agreements are concluded this year, the projects
for production and delivery to the vessels will commence for the
4,000-hour LONO trials that are still targeted to be completed by
mid-2022.
Ensuring the successful delivery of the marine trials with MSC
and progressing this to commercial supply contracts has been our
primary focus during 2021, however we continue to have discussions
with other owners and operators in the marine market, especially
with regards to bioMSAR(TM) as a transition biofuel solution for
earlier decarbonisation.
Morocco
Quadrise and the client continue to progress the overall project
with the focus now on the industrial scale trial at the second
client location ("Site B"). Work is progressing well, with the
pumping and heating unit (which will be used for both the
industrial scale trial at Site B and the commercial scale trial at
"Site A") having been fabricated, tested at QRF and awaiting
shipment. Site preparatory works have been agreed with the client
and Quadrise has taken on additional scope to expedite this
element. This includes Quadrise visiting the site in late June 2021
in preparation for the trial.
The Site B trial requires 60mt of MSAR(R) fuel, which is outside
of the current manufacturing capacity of QRF. The fuel will be
manufactured at a bitumen production facility in Norway and will be
shipped directly to Site B. Current plans are for the trial to be
completed in Q3 2021, together with the completion of the Site A
feasibility study. This is, however, subject to easing of COVID
restrictions both in the UK and Morocco. QFI will be paid around
GBP100,000 for the industrial trial and phase 2 study under
existing agreements with the client.
Following the successful conclusion of the industrial trial, the
plan remains to complete the commercial trial at Site A, which is
the client's major fuel oil consuming site, in H2 2021. A project
is currently being progressed at QRF to enable it to manufacture
MSAR(R) in support of the Site A trial and reduce our dependence on
third parties. Assuming the successful conclusion of these trials,
the intention would then be to conclude a commercial supply
agreement covering one or more of the client's sites in Morocco
before calendar year end. Planned milestones are therefore:
-- Q3 2021 - industrial scale trial at Site B. Complete phase 2
feasibility studies for the commercial trial at Site A.
-- Q3/Q4 2021 - commercial trial at Site A, subject to
successful outcomes from the Site B trial.
-- Conclusion of a commercial supply agreement with the client,
after the successful completion of the commercial trial at Site
A.
Utah
As previously noted, the Commercial Trial Agreement ("CTA") with
Greenfield covers testing at the Petroteq Oil Sands Plant ("POSP")
located at the Asphalt Ridge Facility in Utah, USA, which is
managed by Greenfield. The first phase of the CTA ("Phase 1"), for
which Quadrise is being paid $150,000, includes:
-- Proof of Concept ("POC") formulation and test work at QRF
using oil samples supplied by Greenfield.
-- Loan of Quadrise MSAR(R) commercial production equipment,
test equipment and supply of additives.
-- Supply of specialist services and personnel for the
commercial scale demonstration trial to produce 600 barrels (100mt)
of MSAR(R).
The POC formulation and test work, originally scheduled by the
client at the end of 2020, was reliant on representative heavy oil
samples being received at QRF. These were unfortunately delayed due
to various external factors affecting the start-up, commissioning,
permitting and operations at POSP.
These issues have now been resolved and Greenfield have
indicated that samples have been taken and should be available for
shipment in June 2021. Once these have been received at QRF, we
expect the confirmatory POC testing to be complete within 3 weeks
for both MSAR(R) and bioMSAR(TM).
Pending the successful completion of the POC testing, Quadrise
will work with Greenfield to review and advance fast-track plans to
complete Phase 1 at the earliest opportunity. The objective is to
progress to commercial MSAR(R) production at facilities capable of
treating 10,000 barrels of oil per day ("Phase 2"), including a
conditional MSAR(R) licence to Greenfield subject to commercial
agreements.
Investor Event
The Company confirms that Mike Kirk, Chairman, and Jason Miles,
CEO, will provide a live investor presentation via the Investor
Meet Company ("IMC") platform on 30 June 2021 at 2.00 p.m. London
time.
The Company is committed to ensuring that there are appropriate
communication structures for all elements of its shareholder base
so that its strategy, business model and performance are clearly
understood:
-- The presentation is open to all existing and potential shareholders.
-- Questions can be submitted pre-event via your IMC dashboard
up until 09.00 on 29 June 2021, or at any time during the live
presentation via the "Ask a Question" function. Although the
Company may not be in a position to answer every question it
receives, it will address the most prominent within the confines of
information already disclosed to the market. Responses to the
Q&A from the live presentation will be published at the
earliest opportunity on the Investor Meet Company platform.
-- Investor feedback can also be submitted directly to
management post-event to ensure the Company can gather the views of
its shareholder base.
Investors can sign up to Investor Meet Company for free and add
Quadrise Fuels International plc via :
https://www.investormeetcompany.com/quadrise-fuels-international-plc/register-investor
Investors who have already registered and added to meet the
Company, will be invited automatically.
Mike Kirk, Chairman of Quadrise, said:
"Quadrise is delighted with the recent progress across its main
projects as well as the increasingly enthusiastic market response
to bioMSAR(TM) - our recently launched cleaner, low carbon
alternative to heavy fuel oil.
The positive initial feedback from testing of bioMSAR(TM) on a
Wärtsilä 4-stroke engine in Finland is very encouraging and we look
forward to receiving the full report in the coming weeks. This a
key milestone towards being able to undertake larger commercial
scale testing during the next twelve months with MSC, where we
remain on track to complete the 4,000-hour LONO trials by
mid-2022.
In Morocco, commercial scale testing with our client is on track
for completion in H2 2021 and, assuming the successful conclusion
of the trial programme, the intention is to conclude a commercial
supply agreement before the end of 2021.
Finally, we look forward to receiving samples from Utah,
completing the necessary testing at QRF, and then progressing the
MSAR(R) and bioMSAR(TM) heavy sweet oil opportunities with
Greenfield and Valkor in the USA."
For further information, please contact:
Quadrise Fuels International Plc
Mike Kirk, Chairman +44 (0)20 7031 7321
Jason Miles, Chief Executive Officer ir@quadrisefuels.com
Nominated Adviser
Cenkos Securities plc
Ben Jeynes
Katy Birkin +44 (0)20 7397 8900
Joint Brokers
Peel Hunt LLP
Richard Crichton +44 (0)20 7418 8900
David McKeown
Shore Capital Stockbrokers Limited
Toby Gibbs
Fiona Conroy +44 (0)20 7408 4090
Public & Investor Relations
FTI Consulting
Ben Brewerton +44 (0)20 3727 1000
Ntobeko Chidavaenzi
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDPPUWWQUPGPUM
(END) Dow Jones Newswires
June 28, 2021 02:00 ET (06:00 GMT)
Quadrise (LSE:QED)
Historical Stock Chart
From Sep 2024 to Oct 2024
Quadrise (LSE:QED)
Historical Stock Chart
From Oct 2023 to Oct 2024