Quadrise Fuels International PLC Operational Update (2649L)
September 30 2016 - 2:00AM
UK Regulatory
TIDMQFI
RNS Number : 2649L
Quadrise Fuels International PLC
30 September 2016
30 September 2016
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
Operational Update
Quadrise Fuels International plc (AIM: QFI) is the emerging
supplier of MSAR(R) 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 tonnes per annum) in the
global shipping, refining, power generation markets.
Further to the Company's announcements of 5 July 2016 and 10
August 2016, Quadrise is pleased to provide a further update on its
key projects and associated operational development.
QFI's marine project continues to make excellent progress. Since
July 2016, we have successfully manufactured a number of MSAR(R)
fuel batches using a range of residues. Between the production
campaigns the Company has been working with our partners to ensure
that the logistics of fuel delivery to the nominated Maersk vessel
via a bunker barge are operating smoothly.
The nominated Maersk vessel has been successfully burning
MSAR(R) on its regular scheduled route - whilst outside of the
European Emission Control Area - and the feedback received from
Maersk on the performance of the fuel to date has been positive.
During the remainder of the 'LONO' trial, all parties will continue
to work hard to ensure that the schedules for MSAR(R) production,
bunkering and burning are closely co-ordinated, in order to
minimise the overall time taken to deliver the 4,000 hours of
MSAR(R) fueling required for the LONO. Based on the very positive
performance to date and the nominated vessel's schedule over the
coming months, we currently anticipate that an interim assessment
will be possible in early 2017 and that the trial should be
completed by the middle of 2017.
We have continued to make good progress with other refiners to
underpin the commercial roll-out of marine MSAR(R) fuels for the
shipping industry, post the successful conclusion of the
operational trial programme. Our work with a number of oil majors
regarding technical evaluation is continuing and we anticipate
extending this work into 2017.
Since the signature of the Memorandum of Understanding in the
Kingdom of Saudi Arabia (the "KSA") in August 2016, we have been
working collaboratively with all parties to move this large-scale
production to combustion trial forward. Significant time and
resources have been devoted to this work and, based on our latest
discussions with our partners, we anticipate being able to commence
the trial during 2017. The next major milestone for the Company in
relation to this project is to enter into definitive contracts for
the delivery of the Company's MSAR(R) manufacturing equipment,
chemicals and services for the trial. We currently anticipate that
entry into these agreements will occur during the first half of
2017 at which point definitive timelines for the trial will be
confirmed. Our recent experience in delivering a commercial scale
MSAR(R) production facility at the CEPSA refinery on a very tight
timetable provides a high degree of confidence that Quadrise will
be able to meet the agreed timelines for what will be a large and
complex project.
To support Quadrise's anticipated commencement of commercial
operations during 2017, the Company continues to enhance its
operational resources and, alongside this, the recently announced
extension of QFI's agreements with AkzoNobel provides further
comfort that we can continue to deliver innovation and commercial
scale support for the production of MSAR(R) fuels. In addition to
the support we receive from AkzoNobel, we are very pleased with the
relationship that we have developed with the University of Surrey
since our collaboration started in late 2015 and we anticipate
extending this arrangement later this year for a further term in
order to provide us with cost-effective access to world-class
expertise and facilities that is further enhancing our know-how and
capabilities.
Mike Kirk, Executive Chairman of Quadrise said:
"This has been a transformative year for Quadrise, with
substantial progress in our key trial projects in the marine and
power markets. In addition, we have continued to selectively build
our resources to support these projects and our plans for the
migration to commercial operations during 2017. We look forward to
being able to report continued progress for the remainder of 2016
and 2017."
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 +44 (0)20 7031 7321
Hemant Thanawala, Finance Director
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance Limited
Dr Azhic Basirov +44 (0)20 7131 4000
Ben Jeynes
Broker
Peel Hunt LLP
Richard Crichton +44 (0)20 7418 8900
Ross Allister
Chris Burrows
Public & Investor Relations
FTI Consulting
Ben Brewerton +44 (0)20 3727 1000
This information is provided by RNS
The company news service from the London Stock Exchange
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