27 Nov 2020 07:00
27 November 2020
Quadrise Fuels International plc
("Quadrise", "QFI", the "Company" and together with its subsidiaries the "Group")
AGM Statement
Quadrise Fuels International plc (AIM:QFI) will provide the following update by way of a presentation of its business development activities via Investor Meet Company at 12.30pm today, following the conclusion of the Annual General Meeting of the Company that commences at 12.00 noon and which will be a closed meeting due to Covid-19 restrictions.
Investors can sign up to Investor Meet Company for free and add Quadrise Fuels International plc via
https://www.investormeetcompany.com/quadrise-fuels-international-plc/register-investor
Investors who have already registered and added to meet Quadrise, will be invited automatically.
2020 Overview and Update
Business Development
A swift and proactive approach ensured that Quadrise has been able to mitigate, to a significant extent, the impact of COVID-19 on its business development and project activities. As a result, Quadrise continues to build positive momentum and demonstrate significant progress in several key areas.
Whilst the timetable of some specific activities has been impacted, the team has worked remotely with clients to ensure that overall programmes remain on-track. This has also demonstrated the value in the network of agents and partners that we have built in recent years who have been instrumental in enabling progress through their in-country presence.
The key developments are:
· Morocco. As announced on 26 October 2020, following the completion of the Pilot Trial at one of the client's industrial facilities in Morocco, work has continued on the phase 2 study and planning for the larger industrial-scale trial at another of the client's facilities in Morocco that is being carried out under an amendment to the original agreement. The phase 2 study and the industrial-scale trial are scheduled to be completed in Q1 2021, for which QFI will be paid £100,000. Pending a positive outcome, a new agreement will be finalised for the phase 2 trial that is being planned for Q2 2021 and is the final precursor to commercial roll-out. The purpose of the industrial trial is to de-risk commercial roll-out and fast-track the phase 2 trial, which is similar in scale and will utilise the same MSAR® trial equipment currently being assembled by Quadrise.
· Greenfield Energy, Utah. Progress is being made with Greenfield Energy LLC ("Greenfield") on the plans for the commercial trial at the Asphalt Ridge facility in Utah, USA, under the terms of the Commercial Trial Agreement ("CTA") signed in August 2020, albeit there have been delays in the start-up the Petroteq Oil Sands Plant ("POSP"). Commissioning of the POSP is now planned to begin shortly. As previously noted, the availability of oil samples for testing at Quadrise Research Facility ("QRF") is a critical path item on this programme and sample testing will be completed within 2-3 weeks of receipt at QRF. The MSAR® manufacturing unit and fuel systems are ready to be shipped to the site in Utah, and the MSAR® trial is scheduled to take place at POSP during Q1 2021.
· Marine Fuels. Quadrise has continued to progress opportunities with the intention of reaching agreement as soon as possible for the undertaking of LONO trials with major companies in the container and/or bulker markets during 2021. Plans under discussion relate to scheduling and vessel and fuel supply preparations being made during H1 2021 to commence LONO testing on the main engines of commercial vessels installed with exhaust gas cleaning systems in H2 2021.
· Kingdom of Saudi Arabia ("KSA"). Building on our long history in the region, the Quadrise team continue to have constructive discussions with the major power utility in the KSA together with our local partners Al Khafrah Holding Group ("AKHG"), with whom we have been working to engage with key stakeholders. To reinforce our commitment to the region, in August 2020 we published a Middle East White Paper (in both Arabic and English), outlining the substantial economic and environmental advantages of MSAR®. This was followed, in September 2020 by providing an Arabic version of the main elements of the Quadrise website, including the animated video. Recent discussions have also been held with owners of cement plants and the NOC in KSA.
· Ecuador. Following rapid progress earlier in the year, momentum has now stalled as a result of reorganisation changes by the government impacting the state oil company. We remain in contact with the key stakeholders via our local agents, but progress will be dependent on relations normalising between the ministry and a stable management team at the state oil company. The potential tender of a concession contract for the refinery is a further complication, though we have started to speak with the bidding consortium - as the opportunity for significant value enhancement through the use of MSAR® technology is not dependent on a particular ownership/management structure.
· Green MSAR®. We are progressing early-stage work which pending confirmation in planned larger scale studies, would fundamentally enhance the environmental and sustainability credentials of MSAR®. Green MSAR® incorporates biofuel derivatives alongside residue (with the biofuel derivatives displacing water and residue) and Nouryon additives. This delivers very significant reductions in both CO2 and SOx emissions when compared with HFO, as well as reductions in NOx and particulates. We believe that this provides the opportunity to fundamentally increase the market opportunity in all applications, and the speed and scale of market penetration for Quadrise. A further update on our progress in this area and a formal product launch will be delivered in early December 2020.
· Nouryon - We continue to work closely with Nouryon, and they are supporting our work in the development and patenting of Green MSAR®. Alongside this, we are also looking at opportunities for them to be able to provide more comprehensive support for our business development activities where their relationships with common clients can be used to good effect.
· Other - At this time there are no material updates with regard to the opportunities with the European Oil Major, or the European Oil Refiner, our activities in Kuwait and Mexico, JGC, Merlin Energy Resources, Bitumina, API Poly GCL - though work is continuing as appropriate.
No additional new material information will be disclosed at the presentation and a copy of the presentation will be available on the QFI website immediately prior to the webinar commencing.
Commenting on the update, Mike Kirk, Executive Chairman of QFI, said:
"We are very pleased to be able to provide a comprehensive update to our shareholders following the 2020 AGM. This has been a challenging year for many businesses throughout the world, so we are pleased that we have been able to continue to make good progress in our business development and testing and trial activities, and we have an exciting 2021 planned to provide a pathway to commercial revenues. Our proactive approach to cost management during the year has meant that we were able to extend the runway of our existing cash resources from December 2020, through to mid-Q2 2021.
For additional information, please contact:
Quadrise Fuels International plc +44 (0)20 7031 7321
Mike Kirk, Chairman
Jason Miles, Chief Executive Officer
Cenkos Securities plc +44 (0)20 7397 8900
Nominated Adviser
Ben Jeynes
Katy Birkin
Peel Hunt LLP +44 (0)20 7418 8900
Joint Broker
Richard Crichton
David McKeown
Shore Capital Stockbrokers Limited +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Fiona Conroy
FTI Consulting +44 (0)20 3727 1000
Public and Investor Relations
Ben Brewerton
Ntobeko Chidavaenzi