LONDON (Alliance News) - Quadrise Fuels International PLC on Wednesday said the memorandum of understanding with its clients in Saudi Arabia has been executed to progress the company's plan to conduct a production-to-combustion pilot programme for its MSAR fuel oil.
Quadrise shares were trading up 25% to 12.19 pence per share on Wednesday morning.
The company's MSAR emulsion fuels are a low cost alternative to heavy fuel oil that is typically used within global shipping and refining markets alongside the steam and power generation industries.
Quadrise said in May that it was progressing talks with refiners and clients about the commercial roll-out of MSAR fuels once an operational trial programme, which should be launched shortly, is completed, but said talks with clients in Saudi Arabia were advancing at a slower pace than originally anticipated.
On Wednesday, the company said the memorandum of understanding with its clients in the country has now been executed, allowing the production to combustion trial to start at selected refineries and power plant facilities in the country.
Quadrise said it expects the schedule of the trial to "extend beyond the Spring of 2017", which was when the trial was initially expected to have concluded.
"This is a critical enabler to commence the preparations to bring this project to reality. We remain confident of demonstrating the value of Quadrise MSAR technology in Saudi Arabia on a commercial scale with combustion testing at a major power utility in what promises to be a significant project for the kingdom, well aligned with its Vision 2030 Programme," said Executive Chairman Mike Kirk.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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