13 Mar 2017 07:00
13 March 2017
Quadrise Fuels International plc
("Quadrise", "QFI'' or the "Company")
Marine Operational Trial
Quadrise Fuels International plc (AIM:QFI), the emerging supplier of MSAR® emulsion technology and fuel, enabling a low-cost alternative to heavy fuel oil (one of the world's largest fuels markets, comprising over 450 million tonnes per annum) in the global shipping, refining and power generation markets, announces that the Company has been informed by Maersk Line A/S ("Maersk") of a further update relating to the letter of no objection ("LONO") and MSAR® operational trial on the Maersk nominated vessel.
Further to the announcement made on 2 March 2017, regarding the unscheduled dry-docking of the MSAR® trial vessel, Maersk is continuing its efforts to move the test vessel into a suitable dry dock.
Maersk has however confirmed that the trial has been successful to date and has also indicated that Wärtsilä will carry out a detailed inspection of the test vessel's engine during the next few months to verify and document the performance of the test vessel while operating on MSAR® fuel, with a view to issuing an "Interim LONO" to confirm the fuel is safe and suitable for the Wärtsilä RT-Flex engine type.
Following an operational redeployment of the vessel upon completion of the dry-docking the vessel will not be able to bunker at Algeciras. As a result, the MSAR® trial will be suspended once the remaining MSAR® fuel on the test vessel has been consumed. Maersk is currently considering alternative test vessels within its fleet for a continuation of the MSAR® trial programme - though it is unlikely that the trial will be resumed before Q4 2017.
Maersk has confirmed that it wants to continue to work with Quadrise to explore the commercial options for Marine MSAR® after the issuance of the Interim LONO.
Mike Kirk, Executive Chairman of QFI plc, said:
"We are clearly disappointed that Maersk will have to suspend the trial for operational reasons that are unrelated to the MSAR® operational trial. However, we are pleased that Maersk has reconfirmed that the trial to date has been successful and that an interim inspection will be completed in the Spring, as originally scheduled.
We look forward to receiving the results of the Interim LONO and working with Maersk to pursue the commercial opportunities for MSAR®. The confirmation of the positive trial programme results to date combined with a positive Interim LONO will enable Quadrise to progress its plans for commercialisation of Marine MSAR®".
Niels H Bruus, Head of Future Solutions of Maersk Line A/S, said:
"During the MSAR® trial program Maersk has enjoyed a close and professional collaboration with both our technology partner QFI, and supply partner CEPSA, resulting in a smooth operation during which the fuel has performed well.
We look forward to continuing our collaborations and will work with QFI to consider the commercial opportunities of MSAR® while we review options for continuing trials aboard other vessels."
This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.
For additional information, please contact:
Quadrise Fuels International plc +44 (0)20 7031 7321
Mike Kirk
Hemant Thanawala
Jason Miles
Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000
Dr Azhic Basirov
Ben Jeynes
Katy Birkin
Peel Hunt LLP +44 (0)20 7418 8900
Richard Crichton
Ross Allister
Chris Burrows
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
Sara Powell
Notes to Editors
QFI has developed MSAR® as a less expensive, cleaner synthetic HFO. Produced using QFI's proprietary technologies and services, MSAR® offers both producers and consumers of the fuel significant economic and environmental advantages. MSAR®, an oil in water emulsion, is made by mixing the residue stream from an oil refinery with water and specialised chemicals in a proprietary production process, instead of diluting the residuals with high value distillate products as in the production of HFO.
QFI acts as the technology and service partner to both the producer and the consumer and aims to create value both through licence revenues from the production of fuel and the sale of the chemicals and MSAR® manufacturing systems. The core technology has been developed jointly with AkzoNobel - one of the world's leading surface chemistry companies.
The two largest markets for the use of MSAR® as a low cost, efficient and environmentally friendly synthetic HFO are marine bunkering and power generation. Significant work has been carried out to demonstrate the proof of concept in both end-user markets and current work is focused on commercial scale trials the successful conclusion of which will be a significant milestone towards QFI developing sustainable commercial revenues.