QFI.L Regulatory News (QFI)

18 December 2020

Quadrise Fuels International plc

("Quadrise", "QFI", the "Company" and together with its subsidiaries the "Group")

Update re bioMSAR® Testing and Collaboration Agreement with Aquafuel Research Ltd

Quadrise Fuels International, the supplier of MSAR® emulsion technology and fuels, a low-cost, cleaner alternative to heavy fuel oil, is pleased to provide an update on the expected conclusion of initial testing of bioMSAR® and to announce that it has signed a Collaboration Agreement ("Agreement") with Aquafuel Research Ltd ("Aquafuel"), a British-based company specialising in renewable power innovation using conventional biofuels and glycerine. In accordance with the Agreement, Quadrise and Aquafuel will work together to jointly promote commercial glycerine supply, Aquafuel power solutions and bioMSAR® projects across various applications and regions.

Aquafuel is  the industry partner currently testing bioMSAR® on a standard Cummins diesel generator owned by Quadrise at Aquafuel's UK test facility. The testing, first announced on 15 December 2020, is expected to be completed shortly with final report on the outcome expected in January 2021. bioMSAR® is a low carbon alternative to heavy fuel oil that combines renewable glycerine with MSAR® fuel technology to reduce CO2 emissions by 20-30%, as well as NOx and particulates.

Under the Agreement, Quadrise and Aquafuel will work together, combining their respective expertise and networks, to jointly develop and promote Aquafuel power solutions ("Aquafuel Projects"), bioMSAR® projects ("QFI Projects") and commercial joint projects that may also incorporate glycerine supply ("Joint Projects") across various applications and regions. In doing so the parties will allocate the required internal resource at their own cost and Aquafuel has agreed that it will, in the future, pay fees for Quadrise services provided in relation to Aquafuel Projects successfully developed under the Agreement. Quadrise has similarly agreed to pay Aquafuel fees for their services in relation to QFI Projects successfully developed under the Agreement. The quantum of any future fees payable by either party will be agreed on a project-by-project basis ahead of the other party's involvement.

Jason Miles, CEO of Quadrise, commented:

"We are delighted to be able to sign this collaboration with Aquafuel, who have significant experience and ability in the development of innovative solutions using glycerine in renewable power.

We have been very impressed with the Aquafuel team during the current testing of bioMSAR® at their UK facility, which has yielded promising results. The tests are being carried out on a standard Cummins diesel generator and this is the first time that an MSAR® formulation has ever been run on a high-speed, small-bore engine designed for diesel and adapted for glycerine. Early results are promising and we look forward to receiving the final test report in January 2021 once testing is completed.

We believe that through our collaboration with Aquafuel and other stakeholders, we can simultaneously accelerate the development of bioMSAR® fuel and expand the market for Aquafuel's power solutions through our global network."

Paul Day, CEO & Founder of Aquafuel, commented:

"We are pleased to be able to work with Quadrise, and are impressed to date with the performance of bioMSAR® on a standard Cummins engine that we have adapted to run on glycerine.

We are excited about the prospect of applying our knowledge, experience and patented technology of glycerine and biofuel combustion to residue-based MSAR® and being able to broaden our marketing and business development activities through Quadrise's global network".

Enquiries:

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

Notes to Editors

QFI is the supplier of MSAR® and bioMSAR® emulsion technology and fuels, a low-cost environmentally beneficial alternative to heavy fuel oil for the global power generation, shipping, industrial and refining industries.

Aquafuel Research Ltd is a British-based company that specialises in renewable power innovation using conventional biofuels and glycerine. Aquafuel zero-emission glycerine generators have powered the Formula-E race series and Volkswagen's record-breaking ID.R car batteries. Aquafuel also supply novel renewable CHP and hybrid power solutions.