LONDON (Alliance News) - Quadrise Fuels International PLC saw its shares rise Thursday after it said it had agreed with shipping giant Maersk to move the development of its marine fuel oil alternative into a commercial phase after proof of concept requirements were met.
Quadrise is developing fuel oil alternatives for the shipping, refining and power generation markets. Its main potential product is its MSAR fuel and technology, from which it has already produced bunker fuel.
In a statement, the company said a series of full-engine seaborne service tests with Wärtsilä were completed early in June, and they confirmed "good engine and emissions performance" on Quadrise Marine MSAR fuel.
A separate seaborne test it has running with MAN AG is expected to complete by the end of this month, but have so far reflected the "very positive" land tests.
"The forward plan has been revised such that the "Letter of No Objection" programme will launch the commercial phase in preparation for 'roll-out', rather than concluding the development phase," Quadrise said. "This may delay the LONO timing in the short term, but should be more than compensated by the capability to accelerate future fuel conversion on an assured supply basis."
Quadrise said its plans to secure agreements in principle with oil refiners by the end of 2014 to support future term supply of the Marine MSAR fuel, working closely with Maersk.
"The marine programme has again led the way in 2014, and we are very pleased to have received confirmation from Maersk that their 'Proof of Concept' requirements have been met, and that we will be moving forward to the commercial phase together," Quadrise Chairman Ian Williams said in a statement.
Elsewhere, the company has submitted a formal proposal to install a "commercial demonstration plant" in a designated refinery in Saudi Arabia, although the timing will be subject to a internal budget review process at its client there.
In South America, its memorandum of understanding with Ecopetrol has been extended to the end of August to allow the companies to complete the logistics and marketing aspects of their joint feasibility review. It expects to complete the laboratory analysis of Ecopetrol refinery residue to confirm suitability for MSAR manufacture in the middle of the third quarter.
Quadrise shares were up 7.9% at 34 pence Thursday morning, one of the biggest gains on the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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