QFI.L Regulatory News (QFI)

19 Jun 2007 11:44

Quadrise Fuels International PLC19 June 2007 19th June 2007 AIM: QFI Quadrise Fuels International plc ("Quadrise" or "the Company") Quadrise Canada Corporation acquires equity stake in Clean Energy Systems Inc Quadrise Canada Corporation ("QCC"), and Paxton Corporation ("Paxton") havejointly entered into an agreement with Clean Energy Systems Inc ("CES") ofSacramento, USA. The agreement is for an aggregate equity position in CES, afterexercise of all rights and warrants of approximately 18% on a fully dilutedbasis. Quadrise Fuels International ("QFI"), the AIM listed specialistmanufacturer of MSAR(R) emulsion fuel has a 20% equity stake in QCC and an 8%equity stake in Paxton. In exchange for this position, Paxton and QCC will provide funds for developmentof the CES power generation system. The development programme will focus ondesigning and manufacturing a 12" gas generator capable of producing 65MW ofelectrical power. CES have numerous patents and filed additional patent applications that form thebasis for the first Zero Emission Power Plant (ZEPPTM) in the USA. The CESsystem envisages oxy-firing of a wide range of fuels including the Quadriseproduct, MSAR(R). Oxy-firing permits capture of the combustion product, carbondioxide (the greenhouse gas) in a concentrated form. The high concentrationcarbon dioxide produced in this manner is of a quality suitable for injectioninto hydrocarbon reservoirs to enhance oil recovery and is of considerable valueto the petroleum industry Bill Howe, Chief Executive of Quadrise Fuels International, commented: "Carbondioxide is in short supply in North America. The CES technology offers theopportunity of co-production of saleable power and by-product carbon dioxidefrom in situ oil, together with enhanced oil recovery and simultaneouselimination of greenhouse gas emissions. For QFI, the development of a powergeneration system that was tested using MSAR(R), and has so many 'value add'features is a fundamental progression for the company." Running concurrently with the generator development programme, Paxton is workingwith CES to develop a commercial scale 65MW zero emission MSAR(R) fuelled powerplant in California. For further information, please contact: Quadrise Fuels International plcBill Howe, CEOT: +44 (0)20 7550 4930 Smith & Williamson Corporate Finance LimitedAzhic Basirov / Siobhan Sergeant+44 (0)20 7131 4000 Parkgreen CommunicationsSimon Robinson / Clare Irvine+44 (0)20 7851 7480 Notes to editors: Quadrise Fuels International plc ("Quadrise") produces an emulsion fuel as a lowcost substitute for conventional heavy fuel oil ("HFO") for use in powergeneration plants and large steam raising or energy consuming industries. In manufacturing its fuels, Quadrise uses the least valuable elements of the oilbarrel, thus providing a very cost effective product whilst simultaneouslyfacilitating a means to market for the least desirable heavy crudes and refineryderived residues. The emulsion fuel product, termed MSAR(R) (Multiphase Superfine AtomisedResidue), has superior combustion characteristics to conventional HFO and coal,and has comparable or superior environmental performance in respect ofgreenhouse emissions. This information is provided by RNS The company news service from the London Stock Exchange