Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksQFI.L Regulatory News (QFI)

  • There is currently no data for QFI

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Update on Maersk

7 Apr 2017 12:04

RNS Number : 9518B
Quadrise Fuels International PLC
07 April 2017
 

7 April 2017

 

Quadrise Fuels International plc

("Quadrise", "QFI" or the "Company")

 

Update on Maersk

 

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 noted information in the public domain relating to Maersk Line A/S ("Maersk") and its likely plans for compliance with upcoming environmental legislation. 

 

The Company has noted a presentation given by Maersk Oil Trading that indicated Maersk's initial approach to compliance with the International Maritime Organisation's ("IMO") 2020 sulphur limits to be implemented in 2020 will be to use compliant fuel (less than 0.5% sulphur), rather than installing exhaust gas scrubbers ("Scrubbers") and using higher sulphur fuel. The Company's understanding is that this approach has not been formally adopted by Maersk but that this is anticipated to be adopted by Maersk in the near future. 

 

Marine MSAR® supplied to date has been higher than 0.5% sulphur and one option in the future is to use such fuel together with Scrubbers to achieve IMO 2020 sulphur limit compliance. For operators who choose to use a compliant fuel, a second option would be for QFI to work with refiners or suppliers to produce a compliant (less than 0.5% sulphur) Marine MSAR®, but this would be dependent on availability of low-sulphur residual streams and further work is being carried out to assess the viability of this solution.

 

Maersk has reaffirmed that the MSAR® trial has been successful to date and it will continue to work with Wärtsilä to ensure that a detailed interim inspection report is prepared following the recent inspection and that following this an "Interim LONO" will be issued - which is expected to confirm that Marine MSAR® fuel is safe and suitable for Wärtsilä 2-stroke engines.

 

Maersk has further confirmed that it wishes to continue to work with Quadrise to explore the wider commercial options for Marine MSAR® after the issuance of the Interim LONO. Whilst the Board of the Company has not yet been able to fully assess the effects of Maersk's anticipated policy decision, it is now expected that the timetable for continuation of the trial in Q4 2017 and commercialisation of Marine MSAR®, as originally envisaged to commence with Maersk later this year, will be impacted.

 

Despite this indication from Maersk, QFI continues to believe that the industry will ultimately move to the use of Scrubbers and high sulphur fuel as the most economic compliance option and that Marine MSAR® will enable operators to obtain additional economic and environmental advantages over the use of heavy fuel oil. 

 

 

Mike Kirk, Executive Chairman, said:

 

"We understand Maersk's likely decision to adopt an approach to 2020 compliance that minimises its capex commitments in the short-term. However, there remain significant challenges for the bunker industry to ensure that there will be the required quantity and quality of compliant fuel available from the refining industry for the operators. QFI, like many in the industry, continues to believe that the use of Scrubbers and high sulphur fuel will be the lowest cost option for marine operators and we will continue our efforts to commercialise MSAR® for the global marine industry. 

 

We look forward to getting the results of the interim inspection and the Interim LONO and working with Maersk to pursue the commercial opportunities for MSAR® within the global marine industry. 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®, with an initial focus on those marine operators who have, or are planning to install Scrubbers as their preferred compliance option." 

 

It is also worth reiterating that since the beginning of 2017, we have been working with Cepsa to review new opportunities for utilising the spare MSAR® production capacity at the facility for new customers in the marine and power sectors and these discussions are progressing well.

 

We are also progressing plans for the commencement of the production to combustion trial in KSA in late 2017 - which will require significant engineering and operational support during the design, procurement and commissioning stages - in addition to the continued support during the extended production campaign to produce the significant quantities of MSAR® fuel required for the combustion trial.

 

In addition, our discussions with a number of oil majors and refiners in Europe, the Middle East and Asia are continuing and plans for evaluation of sample residues at the Quadrise Research Facility from a number of refineries are an integral part of this process and these are expected to be progressed during the remainder of 2017. These cover a range of applications including marine, power and refinery refuelling."

 

Niels H Bruus, Head of Future Solutions of Maersk Line A/S, said:

"As we have previously confirmed, during the MSAR® trial programme Maersk has enjoyed a close and professional collaboration with our technology partner QFI and supply partner CEPSA, resulting in a smooth operation during which the MSAR® fuel has performed well. The interim inspection has now been completed by Wärtsilä and we will be working with them to ensure the prompt release of the interim inspection report and an Interim LONO for MSAR® use. We will then work collaboratively with QFI to use these important milestones to progress the commercialisation of MSAR® to the wider global marine industry.

 

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please refer to the Company's website at www.quadrisefuels.com or contact:

 

Quadrise Fuels International Plc

 

Mike Kirk, Executive Chairman

+44 (0)20 7031 7321

Hemant Thanawala, Finance Director

 

 

 

Nominated Adviser

 

Smith & Williamson Corporate Finance Limited

 

Dr Azhic Basirov

+44 (0)20 7131 4000

Ben Jeynes

Katy Birkin

 

 

 

Broker

 

Peel Hunt LLP

 

Richard Crichton

+44 (0)20 7418 8900

Ross Allister 

 

Chris Burrows 

 

 

Public & Investor Relations

 

FTI Consulting

 

Ben Brewerton

+44 (0)20 3727 1000

Sara Powell

 

 

 

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCBBGDSGGGBGRR
Date   Source Headline
12th Aug 20154:35 pmRNSPrice Monitoring Extension
29th Jul 20154:40 pmRNSSecond Price Monitoring Extn
29th Jul 20154:35 pmRNSPrice Monitoring Extension
21st Jul 20154:35 pmRNSPrice Monitoring Extension
25th Jun 20154:40 pmRNSSecond Price Monitoring Extn
25th Jun 20154:35 pmRNSPrice Monitoring Extension
5th Jun 20154:35 pmRNSPrice Monitoring Extension
1st Apr 20151:52 pmRNSHolding(s) in Company
30th Mar 20157:00 amRNSHalf Yearly Report
20th Mar 20154:41 pmRNSSecond Price Monitoring Extn
20th Mar 20154:35 pmRNSPrice Monitoring Extension
16th Feb 20157:00 amRNSNotice of Interim Results and Business Update
13th Feb 201510:55 amRNSStmnt re Share Price Movement
9th Feb 20154:13 pmRNSHolding(s) in Company
30th Jan 201511:40 amRNSDirector's Dealing and Issue of Equity
19th Jan 20154:35 pmRNSPrice Monitoring Extension
16th Jan 20154:40 pmRNSSecond Price Monitoring Extn
16th Jan 20154:35 pmRNSPrice Monitoring Extension
12th Jan 20154:40 pmRNSSecond Price Monitoring Extn
12th Jan 20154:35 pmRNSPrice Monitoring Extension
7th Jan 20157:00 amRNSPersonnel Update
18th Dec 20147:00 amRNSProgramme Update and Purchase of MSAR MMUs
3rd Dec 20142:00 pmRNSHolding(s) in Company
3rd Dec 201411:15 amRNSDirector/PDMR Shareholding
3rd Dec 201410:45 amRNSHolding(s) in Company
28th Nov 20143:50 pmRNSResult of AGM
10th Nov 20147:00 amRNSCo-operation and Exclusive Supply Agreement
31st Oct 20147:00 amRNSTotal Voting Rights
22nd Oct 20143:12 pmRNSAcquisition of Minority Interest, Issue of Equity
20th Oct 20147:00 amRNSFinal Results
10th Oct 20142:33 pmRNSAppointment of Executive Director
8th Oct 201412:34 pmRNSDirectorate Change
11th Sep 20147:00 amRNSHolding(s) in Company
9th Jul 201412:20 pmRNSHolding(s) in Company
3rd Jul 20147:22 amRNSHalf Year Update on Active Programmes
30th May 20147:00 amRNSTotal Voting Rights
9th May 20142:45 pmRNSDirector/PDMR Shareholding
7th May 20142:25 pmRNSIssue of Equity
30th Apr 20147:00 amRNSTotal Voting Rights
17th Apr 20143:41 pmRNSChange of Shareholding
15th Apr 20144:40 pmRNSSecond Price Monitoring Extn
15th Apr 20144:35 pmRNSPrice Monitoring Extension
8th Apr 20144:35 pmRNSPrice Monitoring Extension
2nd Apr 20142:04 pmRNSIssue of Options and Director's Dealing
31st Mar 20147:00 amRNSTotal Voting Rights
25th Mar 201410:27 amRNSDirector/PDMR Shareholding
24th Mar 20147:00 amRNSHalf Yearly Report
6th Mar 20147:00 amRNSIssue of Equity
24th Feb 20147:00 amRNSRoyalty Agreement
24th Feb 20147:00 amRNSUpdate on active programmes

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.