TIDMQFI
RNS Number : 6997K
Quadrise Fuels International PLC
09 May 2022
9 May 2022
Quadrise Fuels International plc
("Quadrise," "QFI" or the "Company")
Operational Update
Quadrise (AIM:QFI) , the supplier of MSAR(R) and bioMSAR(TM)
emulsion technology and fuels, providing innovative lower cost and
lower carbon alternatives to fuel oil and biofuels , presents an
update following a board review of the Company's projects,
operations and business development activities.
Summary
-- The conclusion of the board review is that the Company is on
track to achieve its commercialisation targets following positive
engagement with counterparties during the past month. The Company
therefore intends to progress with each of its core projects as
well as with the development of bioMSAR(TM) fuel and its
derivatives.
-- MSC - Quadrise recently met with MSC executive management in
Cyprus and both parties are now working to finalise an agreement
covering the LONO trial programme aboard MSC container shipping
vessels and the subsequent commercial framework. The conclusion of
the board review is that the Company is on track to achieve its
commercialisation targets following positive engagement with
counterparties during the past month. The Company therefore intends
to progress with each of its core projects as well as with the
development of bioMSAR(TM) fuel and its derivatives.
-- Morocco - an updated Material Transfer and Cooperation
Agreement with our international chemicals and mining client is now
expected to be signed this month ahead of an MSAR (R) combustion
trial that is expected to conclude early Q3 2022.
-- Utah - following signing of Commercial Development Agreement
("CDA") in April 2022, Quadrise and Valkor have commenced
preparatory steps under Phase 1 of the CDA to identify target
consumers of MSAR (R) and bioMSAR (TM) fuel.
-- Testing with Aquafuel this quarter will conclude the
bioMSAR(TM) engine efficiency optimisation work, with results
expected in early Q3 2022.
-- D iscussions are underway with several candidate sites in
Panama and Honduras for MSAR (R) and bioMSAR (TM) power plant
trials later in 2022.
MSC
Quadrise and MSC Shipmanagement continue to progress
finalisation of an agreement covering the LONO trial programme
aboard MSC container shipping vessels and the subsequent commercial
framework, following a positive meeting recently with MSC executive
management in Cyprus.
In parallel, preparations for the 4,000-hour LONO trial
continue, with the procurement process for the vessel fuel booster
system now underway. The selection of suitable MSC LONO vessels and
fuel production sites are also in progress, with a number of
options being investigated to minimise cost, time and risk.
The testing of MSAR(R) and bioMSAR(TM) on Wärtsilä's optical
combustion chamber is now scheduled for Q3 2022, followed by
injector wear rig testing on bioMSAR(TM) in Q4 2022, due to
unavailability of key resources at Wärtsilä and their testing
partners. Quadrise and Wärtsilä are working together to ensure
there are no further delays to this programme during 2022.
Assuming timely conclusion of this framework agreement, and
associated agreements with other project stakeholders during 2022,
the trials themselves are expected to commence before the end of
this calendar year, and will take approximately 9 months to
conclude. Commercial supply of bioMSAR(TM) to MSC would then be
expected to commence in early Q4 2023, following receipt of a LONO
from Wärtsilä.
Morocco
Quadrise continues to work with the client team to finalise
terms on an updated Material Transfer and Cooperation Agreement
with our international chemicals and mining client following the
expiry of the prior agreement in December 2021. It is currently
expected that this updated agreement will be entered into prior to
the end of May 2022.
As previously announced by the Company, the first of the
Moroccan site trials will be at "Site B", which accounts for around
one third of the client's annual HFO consumption, where 60mt of
MSAR(R) will be combusted on one of the client's industrial units.
A smaller trial of bioMSAR(TM) will also take place on the same
unit after the MSAR(R) test. The Quadrise trial equipment is in
Morocco, and production of the fuel will commence upon signature of
the updated agreement. The Site B trial is expected to conclude in
Q3 2022.
Assuming the successful conclusion of the Site B trial, the
intention is then to negotiate and conclude a commercial supply
agreement covering one or more of the client's sites in
Morocco.
A feasibility study for use of MSAR(R) at a second client site
("Site A") is close to completion. This may lead to a further trial
agreement, and if successful enhance the value and volume of the
commercial supply agreement for MSAR(R).
Utah
As announced on 11 April 2022, Quadrise entered into a
Commercial Development Agreement ("CDA") with Valkor Technologies
LLC ("Valkor") to commercialise Quadrise's MSAR(R) and bioMSAR(TM)
technologies at their projects in Utah.
Quadrise awaits the delivery of a crude oil assay from a Valkor
heavy oil asset (the 'Primary Project') in Utah. Following
delivery, Quadrise will perform the envisaged analysis and, if
required, will test a field sample to confirm that it is suitable
as feedstock for the production of MSAR(R) and bioMSAR(TM).
In addition, Quadrise and Valkor have begun working together
under Phase 1 of the CDA to identify target consumers of MSAR (R)
and bioMSAR (TM) fuel to be produced by the Utah heavy oil asset in
which Valkor has an equity interest (the " Primary Project"),
following which supply agreements will be negotiated with these
identified target consumers.
Under the terms of the CDA, both of these Phase 1 activities are
to be completed prior to 30 June 2022, after which commercial terms
for an MSAR (R) and/or bioMSAR (TM) License and Supply Agreement at
the Primary Project would be concluded no later than October
2022.
Latin America
Quadrise and its local agents, E&PC, are progressing
discussions with several candidate sites in Panama and Honduras to
trial MSAR(R) and bioMSAR(TM) later in 2022 at a power plant
equipped with Wärtsilä diesel engines, as a precursor to potential
commercial supply in 2023.
In Mexico, the Company submitted a multi-site study to the
National Oil Company supporting the implementation of MSAR(R)
technology. Documentation is being prepared for one of the sites
identified that could lead to a demonstration of MSAR(R) refinery
refueling on a fuel oil consuming unit later in 2022.
bioMSAR(TM) & Transition Solutions
Following the positive results of bioMSAR(TM) testing on a
Wärtsilä diesel engine at the VTT facility in Finland and on a
high-speed 4-stroke Cummins diesel engine at Aquafuel, a final
round of testing has been scheduled at Aquafuel to commence later
in Q2. This will conclude the bioMSAR(TM) engine efficiency
optimisation work, with results expected early in Q3 2022.
During the period, Quadrise conducted a detailed analysis of the
crude glycerine market and appointed a consultant to review global
sourcing and partnerships for supply and refining. Commercial and
supply discussions are underway with various biodiesel suppliers to
secure the required volumes and quality of renewable, fuel-grade
glycerine to support the forthcoming MSC trials and as a source for
future bioMSAR(TM) commercialisation.
In addition, Quadrise continue to investigate alternative
methods of sourcing renewable glycerine from non-conventional
sources, including algal production.
An international patent application for bioMSAR(TM) and a UK
patent for our novel blending technology has been submitted jointly
with Nouryon and complements our existing MSAR(R) IP.
Our RDI team continue to test low-carbon future fuels, as part
of our energy transition activities to offer a Net Zero solution
for our clients by 2030.
Jason Miles, CEO of Quadrise, said:
"During the past month, the board and management have conducted
an extensive review of the Company's projects, operations and
business development activities with key clients. This exercise was
undertaken to ensure that our manpower and cash resources continue
to be optimally deployed to achieve the Company's revenue and
shareholder value creation targets.
A number of very positive discussions and developments have
taken place across our core projects over recent weeks. These,
together with the outcome of the detailed review described above,
re-confirmed that the Company is well on-track to achieve its
targets. The Board is of the firm view that the best path to value
creation is to progress each of our core projects to address the
needs of the energy sector during the transition period, whilst
continuing to develop our low carbon fuel options, including
bioMSAR (TM) fuel and derivatives for a cleaner energy future.
We are delighted with the progress that the Company has made
over the past month, with the Valkor CDA signed in April and an
updated agreement with our Moroccan client expected to be signed
this month as a result of positive and regular engagement with the
client team. Preparations are underway for the bioMSAR (TM) LONO
trial following a positive meeting with executive MSC management in
Cyprus, and a new commercial framework agreement with MSC is being
progressed at pace between the parties.
Market conditions and the economic climate for Quadrise are
increasingly favourable, with potential customers under added
pressure to reduce fuel costs, whilst also lowering emissions. Fuel
oil-diesel product spreads are at very high levels due to the war
in Ukraine and global supply constraints.
Given the developments described above, we expect to convert our
projects to agreements soon, and on behalf of the team at Quadrise,
I would once again like to thank our shareholders for their ongoing
patience and support, and we look forward to being able to announce
further material progress soon."
For further information, please refer to the Company's website
at www.quadrisefuels.com or contact:
Quadrise Fuels International Plc
Andy Morrison, Chairman
Jason Miles, Chief Executive Officer +44 (0)20 7031 7321
Nominated Adviser
Cenkos Securities plc
Ben Jeynes +44 (0)20 7397 8900
Katy Birkin
Broker
Shore Capital Stockbrokers Limited
Toby Gibbs +44 (0)20 7408 4090
Fiona Conroy
Public & Investor Relations
Vigo Consulting
Patrick D'Ancona
Charlie Neish +44 (0)20 7390 0230
Notes to Editors
Quadrise is the supplier of MSAR(R) and bioMSAR(TM) emulsion
technology and fuels, providing innovative lower cost and lower
carbon alternatives to fuel oil and biofuels in the global power
generation, shipping, industrial and refining industries.
This announcement is inside information for the purposes of
article 7 of Regulation 596/2014.
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
UPDUPUAGAUPPGAR
(END) Dow Jones Newswires
May 09, 2022 13:10 ET (17:10 GMT)
Quadrise (LSE:QED)
Historical Stock Chart
From May 2024 to Jun 2024
Quadrise (LSE:QED)
Historical Stock Chart
From Jun 2023 to Jun 2024