RE: Open Offer Doc3 Mar 2021 23:24
Marine Applications
l We announced on 21 January 2021, that we had signed a JDA with MSC, a world leader in container
shipping and cruise lines. We are now, through the JDA, undertaking the preparatory work to enable
LONO trial(s) aboard MSC container shipping vessel(s).
? During Q1 2021, the planning and preparatory work will be undertaken to enable a LONO trial(s)
of Marine MSAR® to take place on a vessel with a MAN ME engine, and potentially on a vessel
with a Wärtsilä/Win GD Flex engine.
? During Q2 2021, we will be working to procure the equipment for fuel production, and the
vessel(s) fuel booster system(s) and to commence the process of preparing the vessel(s) and the
fuel production site to enable the commencement of the LONO trial(s) in the second half of 2021.
? H2 2021 will see the active commencement of the trial on the vessel(s), with all the preparatory
and commissioning work having been completed for both fuel production and on-vessel storage
and use of MSAR®. Once the initial MSAR® fuel has been loaded and the on-board systems
commissioned, the vessel(s) will then be bunkering Marine MSAR® throughout the LONO trial(s)
which is / are currently expected to be of 4,000-hour duration. The details of the LONO process
and relevant inspections and milestones will be agreed between the parties during the initial phase
of the work under the JDA.
? As we have previously highlighted, we continue to have discussions with other owners and
operators in the marine market, relating to potential trials and commercial roll-out of MSAR® and
bioMSAR™ more widely in the sector. However, ensuring the successful conclusion of the trial
work with MSC and progressing this to commercial supply contracts will be our primary focus in
the short-term.
l As noted previously, there remains a general consensus that scrubbers alongside the use of highsulphur fuels is the lowest cost solution for operators; though scrubber installation activity was lower
than expected during 2020, because of the impact of COVID-19 on shipyard/drydock availability and
scrubber manufacturing.
l We had previously indicated that we were evaluating an opportunity to establish or link with a physical
bunker fuel supplier, to provide a supply network for high sulphur fuels in parallel with MSAR® for LONO
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testing and subsequent commercial supply. With the bunker market adversely impacted by COVID19, this work was paused. However, this is a market opportunity that we will continue to review, albeit
it is not considered a high priority at this time. As noted previously, any decision to enter this market
would be alongside trusted counterparties who can manage the commodity price risk, provide the
working capital requirements and counterparty credit facilities and manage the logistics of a physical
bunkering operation.
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