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Should have been
Typical Contract $8m/tonne in annual EBITDA
"Based on A single refinery producing MSAR equivalent to 1.9Mtpa HFO under a licensing model would generate $15.9m in annual EBITDA"
UTAH 10,000 per day , 365 days, using Fuel Oil 0.149 barrels/tonne
543850 t/year
Typical Contract $8m in annual EBITDA
$4.35M/y
MSC 3.5Mt/y $29M/y
Valuation: Modest adoption transformational
"Based on data from the company, our scenario analysis calculates that even modest adoption of MSAR would generate material profits. A single refinery producing MSAR equivalent to 1.9Mtpa HFO under a licensing model would generate $15.9m in annual EBITDA"
https://www.edisongroup.com/publication/the-clean-solution-to-a-global-problem/28303/
https://qp.com.qa/ar/Pages/ConversionFactor.aspx
"EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in some circumstances. EBITDA, however, can be misleading because it strips out the cost of capital investments like property, plant, and equipment."
https://www.investopedia.com/terms/e/ebitda.asp
I think bioMSAR has a future well beyond 25 yrs
A massive future
Sounds like they will be running the show anyway..
Petroteq suggest they have the assets to produce oil until 2025/6 at the current Utah site, and 25 years at Asphalt Ridge.
So could be 25 years worth of MSAR contracts.. About the life span of a new HFO powered ship, could be hydrogen powered there after ...
Video is worth watching, web site has a photo gallery, some interesting short articles
https://petroteq.energy/
I'd imagine that a valkor takeover would be a possibility
Valkor to pay Petroteq a license fee of US$2,000,000 per oil ?sands plant
Petroteq has also entered into an agreement with Valkor (the “Work Order”) for Valkor to take over ?the management and operations of Petroteq’s existing oil sands plant at Asphalt Ridge, Utah.
https://www.globenewswire.com/news-release/2020/08/26/2083991/0/en/Petroteq-Provides-Shareholder-Update-and-Announces-Additional-Debt-Conversion.html
cant help but notice, steve byle has a significant holding in petroteq
Watched the Proactive MSC video again, after reading your posts it tells a different story..
Thanks elir71
I dont know what the exact contractual arrangements are. I am looking at them as an IP company. Nice clean business.
So,
Reading the MSC RNS I was thinking QFI were supplying fuels?
@dai4belts
QFI have patented a technology, the process that makes MSAR. In that sense they are an intellectual property company primarily. They also have a research facility. I would imagine that their payments for the fuel would be on a %age of the uplift. The uplift being the value added to the product going in to the process to the product going out. Petroteq have a 4% cut from the output of POSP500, so they are in reality primarily an IP company too.
Thanks for the reply, its an interesting share
Are QFI selling the MSAR technology, the fuel, or both?
@dai4belts Greenfield's (Tomco + Valkor JV) product is not directly suitable as a ship's fuel unless they leave significant amounts of the solvent they use to wash the hydrocarbons off the sand, in the product. It needs MSAR as the final process to emulsify the output from the POSP.
The interesting thing about the expected product from Asphalt Ridge is that it does not contain any significant amounts of sulphur. It may be possible to use it without scrubbers which opens up another market. On the cargo ships I've been on then two different fuels were used .. Heavy Fuel Oil (and now Very Low Sulphur Fuel Oil) (HFO, VLSFO) and then MGO Marine Gas OIl for Sulphur Emission Control Areas.
https://en.wikipedia.org/wiki/Emission_Control_Area
Near UK then English Channel east of 5 degrees west
North Sea South of 62 degrees north and east of 4 degrees west
All of the Baltic sea
It may be possible that the product from Asphalt Ridge may be suitable for use in ECAs (most near US waters, caribbean etc)
without the use of scrubbers which are probably not practicable on smaller vessels such as coasterrs
So how is this working ?
QFI have the tech and knowledge to produce a clean HFO that helps meet IMO 2020 standards, and looking for clients such as MSC
Tomco, all going well will also be producing a clean HFO using QFI technology, which could also help meet IMO 2020
Info overload now, been reading a little about glycerine..
"The main characteristic of the glycerine market is the lack of interdependence between supply and demand. As glycerine is a by-product, its supply is mainly dependent on the performance of the biodiesel market. Thus, bigger demand for glycerine does not result in bigger supply The supply increases only when the demand for biodiesel goes up"
https://www.greenea.com/publication/glycerine-market-lack-of-interdependence-between-supply-and-demand/
BioMSAR
Think there is a possible greener fossil fuel-bioSMAR
There is a glut of Glycerine as well.. Interesting Times
They are producing a 12 API, ultra-low BS&W, heavy oil product with almost --NO SULPHUR-- (had to google the meaning of all that)
Plus adding in the--- Quadrise MSAR® ----- process
From what I have been reading, that must be as green as a fossil fuel could ever be
Very good proactive update on Tomco site earlier today.... all looking very good for us all..
So POSP will be producing 10000bopd (70thousand a week, 3.64 million barrels a year).. How much are we charging per barrel? $2 maybe...?
Section Titled "Further information on the POSP, the Oil Sands Technology and the Quadrise MSAR® process"
https://markets.ft.com/data/announce/full?dockey=1323-14580328-2JANHM7UPBA7VSRFKSCP4P548H