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Apologise for the yoda-ism typo there; of course, I meant "FYI"!

Just FIY, this is produced by one of those spammy "report" company, and the same thing has been repeatedly popping up on different autogenerated websites for several years; it's not worth spending any money on.

If you read the original Tomco RNS it makes it clear that it is independent third party verification.

That will be necessary for raising money for the 10k bopd project.

I think Ed's written note is slightly misleading (video is clearer!). It can be read in a way that implies that even without QFI's MSAR fuel, Tomco could produce an HFO/IFO equivalent without further processing. I do not believe that is the case at all.

What comes out of the Petroteq process is API 8-14ish very heavy crude (low-sulphur bitumen). Without the MSAR process, you would still need to use the usual refining and distillate cutting processes to produce something with a low enough viscosity to use as HFO/IFO (especially in marine).

I think MSAR is critical for the most attractive "crude -> premium fuel oil" pathway described by Ed; plus, it helps avoiding refining capacity bottlenecks.

Without MSAR you would be talking about a decent quality low-sulphur super-heavy crude that needs refining and cutting (addition of distillates) to make something useful.

With MSAR, it is a premium fuel directly from crude that has considerably better environmental performance than HFO. It could be used in marine, industrial, etc.

https://www.moroccoworldnews.com/2020/07/308622/morocco-to-reopen-borders-for-moroccans-foreign-residents-july-14/

'of up to', which I believe means QFI's costs will be paid as they are incurred up to that limit, rather than an upfront payment. So it's a budget limit more than anything.

Honestly, $150k seems a reasonable cost for all the work, equipment, etc, that needs doing. For example, QRF profiling, chemicals, research MMU, shipping, design engineering, process engineering, etcetera.

Apologies for being a pedant, but QFI do provide some comprehensive services to the client bundled in with that. Admittedly the cost to the company will be nowhere near $7M.

For example, QFI provide ongoing 'blendmaster' services, which continuously tweaks and optimises formulations according to changes in residue/oil characteristics; this can happen as you move to different parts of the site and oil properties change, changes to refinery configs and crudes (not in this case!), or responding different customer requirements/applications.

For example, QFI can increase stability periods to endure months in storage, and change formulations to resist self-segregation caused by rocking/shaking (e.g. marine), etcetera.

There's also comprehensive and frequent QC, remote monitoring, data collection & analysis, optimisation, etc. So you get a good bundle of services along with it.

I believe it also includes the chemicals, & rapid operational services to ensure all QFI-related equipment is running smoothly.

See: https://www.quadrisefuels.com/msar-technology/quadrise-licensing-and-engineering/ in the "Operations & Quality Control" section particularly.

I bring this up, because I think it's an important aspect of the business that we QFI offer to clients -- customers can be entirely confident in the product, because QFI provide comprehensive operational support for all aspects of the deployment, on a continual basis.

I think the main reason is that Morocco hasn't opened its borders at all yet (only repatriation flights, cargo, emergencies, etc).

The current state of emergency expires on 10th July, so perhaps we should hear more soon about what the plans are.

Seems to be mostly the usual trolls, or people mad that they bought into the short squeeze and it didn't work out?

The SP decrease is the market price reaching parity with the raise price.

The plan with Valkor seems manifestly reasonable, or am I missing something here?

It's just a shame about the ****-up and this wasn't the first news! I think the plan is objectively better than the first one (from QFI's perspective), as it brings forward large-scale commercial rollout. Yet the SP hasn't reacted yet! Amazing, really.

""
Following a review of the planned upgrades to and the test program at the POSP, it has been determined by both TomCo and Valkor that it would be more efficient to complete all the planned upgrades and installation works to the POSP as soon as possible, rather than implement it through a phased approach.
""

""
· Subject to agreement being reached with Quadrise Fuels International plc ("Quadrise"), the upgrade will include a commercial trial of Quadrise's MSAR® Technology at the POSP.
""

Good stuff.

Definitely. They are bringing the project forwards quite considerably by the looks of it, and MSAR is a key feature of the project proposal.

A complication, of course, is that the UK does its own thing now. So we'll have to wait and see what the UK authorities decide re: travel. They haven't released their list of "air corridors" yet.

Agree on that, 14 days quarantine would easily be worth it to get the pilot done and dusted. Given we've been waiting since March to get out there, 14 days WFH is a small price to pay.

Thought this may interest you guys, Quadrise MSAR featured in Clean Shipping International

https://www.linkedin.com/posts/quadrise-international-ltd_msar-qfi-activity-6683381515310772224-STeH

Explains a bit about the fuel in a marine context

https://www.linkedin.com/posts/quadrise-international-ltd_msar-qfi-activity-6683381515310772224-STeH

h/t iantobach for posting this news up on the qfi shareholders' forums

https://www.moroccoworldnews.com/2020/06/307110/morocco-prepares-to-reopen-borders-in-july/

Rabat – Morocco’s land, air, and sea borders are expected to reopen in July, following the country’s nationwide state of emergency that is set to conclude on July 10.

The news of Morocco’s border opening comes after the European Union announced July 1 as its planned date to open external borders to a select number of countries. Morocco is among 14 countries that met the EU’s epidemiological criteria and is included on their draft list.

The Moroccan authorities have not yet released official dates regarding the border reopening or which countries would immediately benefit from the travel authorization

https://www.moroccoworldnews.com/2020/06/306610/moroccos-tourism-ministry-details-plan-for-domestic-flight-resumption/

Morocco domestic flights resuming on 25th June

Nothing yet on international flights, but I think this is amongst the first steps along that pathway. I would not like to guess how long that may be, at this stage.

My understanding is basically that Tomco will stump up the cash once we're at a point when the tech is basically proven and they are ready to go to either large trials or fully commercial.

That seems a very good deal for Tomco, as Valkor are evidently taking the brunt of the upfront risk for now. This seems fair after they (seemingly!) flubbed a detail on the Quadrise licensing arrangement.

So, the company should be in a much stronger position once that first trials hurdle is passed, and raising that cash should be easier as it should be considerably lower risk.

Torreaguas -- a full suite of services are bundled in with that (comprehensive technical support, blending/formulation, QA, etc), and chemicals are provided by QFI. So there are some costs, but I think you are right overall -- it's fairly modest.

Mike Kirk provided some hypothetical figures at the recent Proactive One2One event where he stated approx margin of $5M-$6M pa for a 10k bpod licensing deal for a conventional resid -> synthetic HFO project.

However, as others pointed out, the real figures may be better in this case for all parties, because this is a unique arrangement whereby they are converting crude directly into a high-end fuel. So that literally skips the *entire* refining process, which is pretty much the best case imaginable for cost and reducing refining energy expenditure (and emissions).

I'm impressed, and hope this incident can be overcome as I think the project looks great.

Here's the vid with the timestamp
https://youtu.be/m9mgoWe40-0?t=2947