29 Aug 2013 07:00
29 August 2013
Quadrise Fuels International Plc
("QFI", "Quadrise" or the "Company")
Signs contracts enabling the supply of Marine MSAR®2 fuel to conclude proof of concept in 2013
Quadrise, the emerging supplier of MSAR®, a low cost alternative to fuel oil in the shipping, refining, and power generation markets, is pleased to announce the closing of contracts that enables the production and supply of Marine MSAR®2 to A.P.Møller-Mærsk ("Mærsk") this year, as planned. This fuel will be used to conclude proof of concept and performance evaluations on the two main engine types.
It is anticipated that verified results of the Mærsk vessel performance evaluations on MSAR®2 will be available by Q1 2014. Quadrise then expects that, subject to the outcome of these evaluations, progressive commercial quantities of Marine MSAR® will be produced during 2014 to conclude Letters Of No Objection ("LONO") endorsements from engine manufacturers.
As advised in the Company's updates to shareholders on 17 January 2013 tests on Marine MSAR®2 were completed by Mærsk on Wärtsilä's state of the art RTX4 2-stroke test engine in Winterthur, Switzerland. These tests successfully demonstrated the general effectiveness and performance of the fuel in a modern 2-stroke engine and provided recommendations for commencing extended vessel operations using MSAR®2.
In order to commence the use of Marine MSAR®2 on operational Mærsk vessels it was also necessary to undertake thorough assessments of the test results to date and multi-party reviews of the proposed activities. These activities involved Mærsk, QIL, engine manufacturers (Wärtsilä, MAN Diesel), class societies (Lloyds Register, American Bureau of Shipping) and the Danish Maritime Authority.
Following final approvals from Mærsk, Quadrise International Limited ("QIL") has agreed terms and executed contracts with Mærsk, AB Orlen Lietuva ("Orlen Lietuva") and AkzoNobel Surface & Formulation Chemistry AB ("AkzoNobel") to enable the supply of Marine MSAR®2 during 2H 2013.
The 1,000 ton per day MSAR® manufacturing unit owned by QIL and supporting systems are now installed at the 200,000 barrel per day Orlen Lietuva refinery in Mazeikiai Lithuania and will soon be ready to produce Marine MSAR®2 fuel for supply to Mærsk vessels during 2013. The fuel will be used for the main propulsion of Wärtsilä and MAN Diesel engines on operational Mærsk vessels.
The QIL operations team is deployed at the refinery site to manage project installations, subsequent operation of the MSAR® manufacturing plant, and fuel quality assurance throughout the supply chain.
Commenting on this development, Ian Williams, Executive Chairman of QFI said:
"These contracts represent a further significant milestone in the commercialisation of Marine MSAR®2 fuel, enabling production and supply of Marine MSAR®2 in 2013 and providing us line of sight toward commercial roll out in 2014 as planned."
"An impressive array of fuel and engine testing has been carried out on Marine MSAR®2 to date by Quadrise, Mærsk and reputable third parties such as Wärtsilä and MAN Diesel. As a result Mærsk have now approved the concluding MSAR® proof of concept evaluations on two operational vessels. We look forward to producing commercial volumes of Marine MSAR®2 and supporting these activities during this very exciting period for the Company."
For further information on the Company, please refer to www.quadrisefuels.com or contact:
Ian Williams, Executive Chairman +44 (0)20 7031 7321
Hemant Thanawala, Finance Director
Quadrise Fuels International PLC
Dr Azhic Basirov / Siobhan Sergeant +44 (0)20 7131 4000
Nominated Adviser
Smith & Williamson Corporate Finance Limited
Antonio Bossi / Ian Napier +44 (0)20 7601 6100
Broker
Westhouse Securities Limited
Philip Dennis / Nick Lambert / Rollo Crichton‐Stuart +44 (0)20 7861 3232
Public & Investor Relations
Pelham Bell Pottinger