25 Oct 2010 07:00
Quadrise Fuels International Plc ("QFI" or "the Company")
MOU with PowerSeraya for MSAR® Fuel
25 October 2010
Quadrise Fuels International plc is pleased to announce that Quadrise International Limited ("QIL"), the producer of oil-in-water emulsion fuel as a low cost substitute for heavy fuel oil, and PowerSeraya Ltd (which is wholly owned by YTL Power International Berhad of Malaysia), have executed a Memorandum of Understanding ("MOU") to jointly investigate opportunities for the supply of Quadrise MSAR® emulsion fuel to their Singapore generating facilities.
QIL is a wholly owned subsidiary of QFI and holds all of the Company's managed interests.
PowerSeraya Ltd is one of Singapore's leading power utilities and in 2005 converted 750MWe of thermal boiler capacity on Jurong Island to allow flexible multi-fuel operation. Conversion included the ability to use up to 1.8 million tonnes per annum of oil-in-water emulsion fuel and the installation of flue gas desulphurisation.
The MOU is valid for 12 months. The programme will capitalise on QIL's comprehensive knowledge of oil refining, emulsion fuel production, logistics and combustion. PowerSeraya will contribute their extensive power generation experience and considerable technical expertise relating to fuel assessment and project management. Should the investigation lead to joint confirmation of viable Quadrise MSAR® fuel supply opportunities, PowerSeraya and QIL intend to progress to a commercial phase in which Quadrise MSAR® fuel is used in Singapore to displace more expensive heavy fuel oil.
In line with the recent restructuring of QFI announced on the 18th October 2010, rights and obligations arising under the PowerSeraya MOU will be transferred to a new focussed subsidiary, Quadrise Asia Limited, formed for development of managed business activities in Asia and in which QIL will have a 75% controlling interest and an aggregate of 25% will be held by management.
Commenting on the agreement, Ian Williams, Executive Chairman of QFI said: "This MOU is a very exciting opportunity for QIL and the Company. The prospective application of MSAR® fuel in Singapore, while subject to inter-fuels competition, will provide an excellent first commercial opportunity for Quadrise MSAR® fuel in the region. We look forward to developing this opportunity through Quadrise Asia Limited, and congratulate the QIL management on securing the MOU which provides a pathway to commercialisation for Quadrise with PowerSeraya."
Commenting on the agreement John Ng Peng Wah, CEO of PowerSeraya said: "MSAR® represents an interesting alternative fuel for PowerSeraya, subject to confirmation of technical performance and economic benefits. We look forward to working with the Quadrise team, members of which were instrumental in the initial conversion of 750MWe capacity to base load emulsion fuel use."
Enquiries:
Quadrise Fuels International plc
Tel: +44 (0)20 7550 4930
Ian Williams, Chairman
Fairfax I.S. PLC
Tel: +44 (0)20 7598 5368
Katy Birkin/Simon Bennett