Good update on Utah24 Mar 2025 12:07
Our project with Valkor in Utah, USA, aims to supply low sulphur MSAR® and bioMSAR™ fuels to the marine and power sectors. Valkor have interests in several projects at the Asphalt Ridge site in Utah and expect to be able to provide commercial volumes of heavy oil for conversion to bioMSAR™ and MSAR® later in 2025, to facilitate site trials by potential customers. Upon success, these would then lead to commercial fuel supply.
The oil extracted by Valkor has lower carbon intensity and very low sulphur content, so is expected to comply with International Maritime Organisation regulations for low sulphur marine fuels once converted to MSAR® or bioMSAR™, without the need for carbon-intensive refining.
In January 2025 Quadrise and Valkor agreed to an addendum to the 2023 Site License and Supply Agreement, under which Valkor have agreed to pay Quadrise:
- A license fee of $1.0 million, with an initial payment of $0.35 million and the balance of $0.65 million by December 2025.
- $0.2 million for the supply of a 5-tonne-per-hour MMU, with an additional $0.3 million due upon supply of a full-size 6,000 bpd MMU.
- A quarterly payment of $75,000 from Q2 2025 for engineering, process design, commissioning services, site operations, compliance support and project development support services for a minimum of two years.
During the last six months, Valkor have been optimising their pilot plant operation to maximise the quality of the produced oil, and have recently shipped a representative sample to Quadrise for analysis, and bioMSAR™ and MSAR® formulation. Fuel marketing to marine and power consumers will commence once test results confirm product quality and supply costs. Quadrise expects to share in the profits of future commercial agreements.
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