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We knew what was coming. We forecast the content. The AGM RNS was always going to be thin gruel as our counterparties dictate progress, and their timetables have nothing to do with Quadrise's obligatory reporting dates. So it is forced 'news' filtered through the NOMAD. Reports from today's attendees and their unattributable off the record One to Ones with key members of the company will be more enlightening as to the state and rate of progress and future milestone guidance.
Mike took on the roles of IR and PR as part of the cost cutting and streamlining steps to ensure the company survived on a reduced cash burn.
Like Clarkson on Top Gear he probably thought ‘how hard can it be’? But neither role played to his strengths and he thought the work involved was beneath him.
His mobile phone videos of QRF in action and the accompanying deadpan voiceovers were most definitely not a showcase of his talents. Nor did his sporadic email replies to LTH’s requests for information/clarity assuage concerns.
As the tone of emails he received hardened and became more shrill, Mikes desire to explain evaporated. He’s on his way now. Let’s hope the new Chairman realises where his strengths are and delegates the IR and PR roles to others better qualified than him.
I personally don't think MK is a corporate Beelzebub as others portray him.
I also think we need to manage our expectations regards a CNN 24/7 news flow and better understand the role of the QFI NOMAD. MK might for all we know be loquacious by nature. But the NOMAD exercises full editorial rights. The NOMAD is also the reason for MK's ultimately anodyne RNS's.
For all his faults MK has kept us in the game. He was brought in as a corporate finance specialist to sell the company on the back of Maersk and KSA contracts. Neither happened and desperate times took desperate measures. As a result we're all diluted and we are all nursing a paper loss. MK's performance has been mixed and it serves no purpose to dwell on the negatives. Better to focus on what we have and on the plus side we have an impending LONO with MSC, we have bioMSAR, we have OCP in Morocco, we have engine testing with Aquafuels, and we have an NDA with PEMEX, and we have two new ii's. Utah. It could come good; but not with Tomco and PQE because they are stony broke. Valkor is the key to us in Utah.
In summary , MK hands over the Chair with the company in better shape regards projects and prospects than the one he inherited.
We are not in charge of the progress of our projects. MSC have their own timetable, as do OCP and PEMEX. Utah is dependent on drilling success and alternating Steam/ CO2 injection being proven. It's a novel and high risk solution worthy of industry conference technical papers
Perhaps the new Chair will recognise this fact that we are not in control of our own destiny and are instead reliant on the timetables of our bigger counterparties. I hope our new Chairman can help to fast forward the MMU installation at QRF and start a low cost / low volume / high impact mini trial with a suitably converted Container coaster operating of of nearby Felixstowe whose progress we can manage and control. But by then the MSC LONO will have been announced; and it will be all hands on deck to service the BioMSAR/ MSAR LONO's.
Good observations alcasey.
More RNS forecasted phrases include;
‘We’re busy positioning ourselves for the transition from pre-commercial to commercial’ and other standard phrases from the corporate playbook.
And, not forgetting,
‘We have been busy with a more contemporary reimagining of our knowledge-based management’.
Und so weiter.
Mike should get in touch.
I hope I’m doing him a massive disservice.
Shall we have a stab at writing the RNS?
Me first.
1. MSC. Awaiting on refiner to come on board, glycerol security of supply and BioMSAR results with Aquafuels. LONO expected to start 1H 22.
2. Morocco. Awaiting approval to enter site. Expected trial burn 1Q22.
3. Utah. Awaiting Greenfield progress on CO2 injection wells and oil production wells. Expected commercial signature for production 2Q22 based on drilling results.
4. PEMEX POC. Expect more news 2Q 22. Mexico agent waiting on Govt response.
5. BioMSAR testing with Aquafuels progressing as planned; results due 1Q22.
6. JGC still engaged.
7. Saudi Aramco still engaged.
8. QRF MMU installation HU&C expected 2Q 22
9. Other shippers making enquiries. Lots of interest in BioMSAR.
All rather depressing and Business as Usual really.
Unless MK and his glamourous assistant can pull a white rabbit from a silk top hat.
Self identifying Tosspots can also use the filter to block considered and erudite posts by the thinking adults on the forum so their edited version of the forum can read like The Beano and co-exist in a parallel universe.
I appreciate that it’s a value judgement when identifying complete tosspots whose contributions to this forum are unconstructive at best and libellous at worst. But judicious use of the filter has saved this forum from becoming the kindergarten that is ADVFN. If there are objections to the filter then ADVFN awaits the objectors’ puerile contributions.
I’d like to think that next week is going to be Big News Week for Quadrise as Mike Kirk is carried shoulder high from the AGM by rapturous LTH’s.
But then, on reflection, I realise that Quadrise has little to to no control over the announcements of the MSC LONO, the OCP Morocco trial and the Pemex trial. Our AGM and the change in the Chairman means nothing to our potential counterparties.
So any news next week will be limited to ‘steady as she goes’ platitudes. Just trying to manage expectations, including my own.
I'm sorry for the duplication. There was a lag in the page update and I thought the first post was lost to the ether.
From the research paper.
it's biased - see disclosures. But I'd rather have it than not have it.
"It is rare that a company has technology that can help lower potential clients’ carbon footprint whilst also reducing their costs.
Quadrise's synthetic fuels, MSAR and bioMSAR, are manufactured by mixing heavy residual oils with specialist chemicals and water.
These emulsified fuels are cheaper and greener than conventional heavy fuel oil. bioMSAR uses glycerine, which is biodegradable and 40% renewable, in addition to water and specialist chemicals.
The resulting emulsion lowers carbon dioxide emissions by 25%.
Quadrise has three ongoing commercial trials, each of which could lead to cash flows that are potentially be worth considerably more than the company's enterprise value in today’s money.
We have confidence that tightening regulations from the International Maritime Organisation will support progression towards the commercialisation of Quadrise’s project with the second biggest shipping company in the world, MSC.
MSAR and bioMSAR also have proven applications in the power and general industrial markets. Encouraging progress over the past 12 months has been made in trials at the Petroteq Oil Sands Plant in Utah and at an industrial client site in Morocco.
Given that no significant adaptions to equipment are required for the use of MSAR and bioMSAR, we expect the commercialisation of these products to come soon after important trials are due to be completed in 2022."
Caveats galore on the disclosures page.
Same as Velocys.
1. Shore Capital acts as Broker to the company.
3. Shore Capital makes a market in the company's shares.
9. Shore Capital is party to an agreement with the company relating to the production of research although the timing and content of the research is exclusively the preserve of the relevant analyst(s).
11. The Sales/Research Analyst responsible for this investment recommendation may have his/her remuneration linked to investment banking transactions performed by Shore Capital.
13. Shore Capital is engaged to provide Corporate Access services to the issuer
From the Shore Capital doc;
'It is rare that a company has technology that can help lower potential clients’ carbon footprint whilst
also reducing their costs. Quadrise's synthetic fuels, MSAR and bioMSAR, are manufactured by
mixing heavy residual oils with specialist chemicals and water. These emulsified fuels are cheaper
and greener than conventional heavy fuel oil. bioMSAR uses glycerine, which is biodegradable and
40% renewable, in addition to water and specialist chemicals. The resulting emulsion lowers carbon
dioxide emissions by 25%.
Quadrise has three ongoing commercial trials, each of which could lead to cash flows that are
potentially be worth considerably more than the company's enterprise value in today’s money. We
have confidence that tightening regulations from the International Maritime Organisation will
support progression towards the commercialisation of Quadrise’s project with the second biggest
shipping company in the world, MSC.
MSAR and bioMSAR also have proven applications in the power and general industrial markets.
Encouraging progress over the past 12 months has been made in trials at the Petroteq Oil Sands
Plant in Utah and at an industrial client site in Morocco. Given that no significant adaptions to
equipment are required for the use of MSAR and bioMSAR, we expect the commercialisation of
these products to come soon after important trials are due to be completed in 2022.'
Filtered. Adds nothing to the conversation.
The previous chairman was guilty of hyperbole . This chairman is the opposite. Hopefully the next chairman is somewhere in between.
The investor presentation planned to be part of a week next Friday’s AGM conclusively means there will be an RNS on a day prior to the AGM. I’d pencil in Tuesday and Wednesday next week.
We can expect updates on the timing /confirmation of the MSC LONO, the timing of the trial at OCP (Morocco), the status of the Utah commercial contract(s), the status of the PEMEX trial, the status of BioMSAR testing, and the status of the in-house installation of the MMU to make 50-100 MT trial quantities of MSAR /BioMSAR.
Partly true. Engines will be dual fuelled, and the ‘aim’ is to continue along that route.
600 million tonnes of fuel oil used by shipping worldwide will take time to replace with green hydrogen and methanol. So dual fuelled engines make sense, and the concept helps with the introduction of MSAR and BioMSAR.
“The world’s biggest shipping company is investing $1.4bn (£1bn) to speed up its switch to carbon neutral operations, ordering eight container vessels that can be fuelled by green methanol as well as traditional bunker fuel.”.
And…
“The Danish company aims to only order new vessels that can use carbon neutral fuel as it seeks to deliver net zero emissions by 2050.”
If it is Rotterdam then I think it’s Shell as they are already MSC’s partners on the low carbon path.
https://www.shell.com/business-customers/trading-and-supply/trading/news-and-media-releases/shell-and-msc-sign-collaboration-agreement-on-decarbonising-shipping.html
But you’re right, there are no bad choices in Rotterdam.
The full story is available on the Forum.
A key paragraph is,
“A production deal with a refinery, likely to be in Rotterdam, also needs to be agreed for about 15,000 tonnes per vessel over six months of trials. Quadrise already has two blending units that Miles said can be installed in a refinery in less than 12 months at a cost of about $5m to supply 10 to 15 boxships.”.
Rotterdam = Pernis = Shell, which would be nice.
Quadrise, MSC and Shell in the same sentence.
I think the paragraph combines two issues. One is the trial, the other is post- successful trial commercial supply.
From Tradewinds dated 09 November.
It’s behind a paywall so only the headline and opening para. is visible.
“MSC picks up glycerine biofuel blend challenge from Maersk”.
“Carrier will test emission-cutting version of oil-in-water emulsion trialled by containership rival before it opted for low-sulphur bunkers.”.
I personally like the use of ‘will’.
I hope Mike is knocking his pan out in the run up to his last day at the end of the month and is working to get the MSC LONO deal across the line by then.
Alternatively, he could be de-mob happy and he’s turning up at 10, lunch from 12 till 2, and leaving at 3.
I’d like to think he has one eye on his legacy and the views of his peers though.
Use the filter function, unless you enjoy wasting your time arguing with multiple personalities who only want to keep the argument going for its own sake.