28 Aug 2012 07:00
28 August 2012
Quadrise Fuels International Plc ("QFI", "Quadrise" or the "Company")
Marine MSAR® fuel - progress towards commercialisation
Quadrise International Limited ("QIL") is the emerging supplier of MSAR®, a low cost alternative to heavy fuel oil in the shipping, refining, and power generation markets.
As advised in the Company's update on 8 June 2012, the limited 'in service' adjustments available on the A.P.Møller-Mærsk ("Mærsk") test vessel prevented the full optimisation of engine performance during the first 'seaborne' assessment earlier in 2012. The positive results and associated information have, however, led to re-confirmation of support by all partners to the Joint Development Agreement and their commitment to the programme to commercialisation.
Scientists and engineers from QIL and AkzoNobel Surface Chemistry AB ("AkzoNobel") have now successfully developed an enhanced version of the fuel (termed 'Marine MSAR®2'), based on advanced formulation techniques and highly efficient additives. Resulting from the wide-ranging experience represented within the joint technical team, together with the results gained during the recent engine tests with Mærsk, the focus of this new fuel has been value-added performance during application, to provide a market leading solution for marine engine refuelling. Quadrise is now pleased to announce the closing of an agreement with AB Orlen Lietuva ("Orlen Lietuva") to proceed with the fuel manufacturing and assessment programme with Mærsk, which includes the further evaluation of Marine MSAR®2 on the pathway to commercialisation.
The QIL and AkzoNobel team have already been deployed to the refinery site to manage project installations prior to fuel manufacture.
The results of the evaluation programme are expected before the end of 2012.
The plan for 2013 naturally remains subject to the outcome of this engine testing, third party approvals and the conclusion of commercial agreements with stakeholders. Quadrise however anticipates that commercial volumes of Marine MSAR®2 will be produced progressively from mid-2013 to allow the wider evaluation of performance across a representative range of vessels prior to full commercial roll-out during 2014.
Commenting on this development, Ian Williams, Executive Chairman of QFI said:
"The sea trials conducted this year provided valuable and pioneering insight into the use of Marine MSAR® as bunker fuel, including confirmation of the environmental benefits from potential emissions reductions. These new tests should complete the research and development phase of the Marine MSAR® programme prior to the Company entering the commercial phase during 2013. We look forward to realising the opportunity that this represents for the Company and, once again, thank our distinguished partners in this 'game changing' venture for their continued enthusiasm and support."
-ENDS-
For further information, please refer to the Company's website at www.quadrisefuels.com or contact:
Ian Williams, Executive Chairman Hemant Thanawala, Finance Director Quadrise Fuels International Plc
| +44 (0)20 7031 7321
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Dr Azhic Basirov / Siobhan Sergeant Nominated Adviser Smith & Williamson Corporate Finance Limited
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Dermot McKechnie / Petre Norton Broker Westhouse Securities Limited
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Philip Dennis / Nick Lambert / Rollo Crichton-Stuart Public & Investor Relations Pelham Bell Pottinger
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