11 Feb 2011 09:30
Quadrise Fuels International plc ("QFI" or "the Company")
Royalty Agreement between Quadrise International Limited and A.P. Moller-Maersk for Marine MSAR® Bunker Fuel Oil.
11 February 2011
Quadrise Fuels International plc is pleased to announce that Quadrise International Limited ("QIL"), the developer of oil-in-water emulsion fuel as a low cost substitute for heavy fuel oil and A.P. Moller - Maersk ("Maersk") have signed a Royalty Agreement.
QIL is a wholly owned subsidiary of QFI and holds all of the Company's managed interests.
The Royalty Agreement is valid for the period up to 31st December 2019 and provides the legal framework for future commercial sales of Marine MSAR® fuel to Maersk and third parties.
Commercial sales of Marine MSAR® are contingent on the successful conclusion of the joint development programme with Maersk announced by the Company in March 2010. This programme includes marine engine tests on land and sea, third party verification and approvals, and conclusion of agreements with candidate oil refineries during 2011.
Commenting on the development Ian Williams, Executive Chairman of QFI said:
"This Royalty Agreement will be material to the Company in commercialising Marine MSAR® fuel. QIL's specialist team are fully engaged on this exciting project which aims to supply Marine MSAR® as an approved lower cost replacement for bunker fuel oil."
"Bunker fuel oil is a 150 million ton annual global market, nearly one third of the global heavy fuel oil market. Bunker fuel is a major operating cost for shipping companies. Marine MSAR® has the potential to reduce the impact of rising oil prices on the global freight market and is a key component of the future Quadrise business mix. This long-term agreement is another endorsement of the Quadrise management team, our alliance partner AkzoNobel, and MSAR® technology."
Enquiries:
Quadrise Fuels International plc
Tel: +44 (0) 7550 4931
Ian Williams, Executive Chairman
Fairfax I.S. PLC
Tel: +44 (0) 20 7598 5368
Katy Birkin