Source - RNS
RNS Number : 2649L
Quadrise Fuels International PLC
30 September 2016
 

30 September 2016 

 

Quadrise Fuels International plc

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

 

Operational Update
 

Quadrise Fuels International plc (AIM: QFI) is the emerging supplier of MSAR® emulsion technology and fuel, enabling a low-cost alternative to heavy fuel oil (one of the world's largest fuel markets, comprising over 450 million tonnes per annum) in the global shipping, refining, power generation markets.

 

Further to the Company's announcements of 5 July 2016 and 10 August 2016, Quadrise is pleased to provide a further update on its key projects and associated operational development.

 

QFI's marine project continues to make excellent progress. Since July 2016, we have successfully manufactured a number of MSAR® fuel batches using a range of residues.  Between the production campaigns the Company has been working with our partners to ensure that the logistics of fuel delivery to the nominated Maersk vessel via a bunker barge are operating smoothly.   

 

The nominated Maersk vessel has been successfully burning MSAR® on its regular scheduled route - whilst outside of the European Emission Control Area - and the feedback received from Maersk on the performance of the fuel to date has been positive. During the remainder of the 'LONO' trial, all parties will continue to work hard to ensure that the schedules for MSAR® production, bunkering and burning are closely co-ordinated, in order to minimise the overall time taken to deliver the 4,000 hours of MSAR® fueling required for the LONO.   Based on the very positive performance to date and the nominated vessel's schedule over the coming months, we currently anticipate that an interim assessment will be possible in early 2017 and that the trial should be completed by the middle of 2017.

 

We have continued to make good progress with other refiners to underpin the commercial roll-out of marine MSAR® fuels for the shipping industry, post the successful conclusion of the operational trial programme. Our work with a number of oil majors regarding technical evaluation is continuing and we anticipate extending this work into 2017.

 

Since the signature of the Memorandum of Understanding in the Kingdom of Saudi Arabia (the "KSA") in August 2016, we have been working collaboratively with all parties to move this large-scale production to combustion trial forward. Significant time and resources have been devoted to this work and, based on our latest discussions with our partners, we anticipate being able to commence the trial during 2017.  The next major milestone for the Company in relation to this project is to enter into definitive contracts for the delivery of the Company's MSAR® manufacturing equipment, chemicals and services for the trial.  We currently anticipate that entry into these agreements will occur during the first half of 2017 at which point definitive timelines for the trial will be confirmed.   Our recent experience in delivering a commercial scale MSAR® production facility at the CEPSA refinery on a very tight timetable provides a high degree of confidence that Quadrise will be able to meet the agreed timelines for what will be a large and complex project. 

 

To support Quadrise's anticipated commencement of commercial operations during 2017, the Company continues to enhance its operational resources and, alongside this, the recently announced extension of QFI's agreements with AkzoNobel provides further comfort that we can continue to deliver innovation and commercial scale support for the production of MSAR® fuels. In addition to the support we receive from AkzoNobel, we are very pleased with the relationship that we have developed with the University of Surrey since our collaboration started in late 2015 and we anticipate extending this arrangement later this year for a further term in order to provide us with cost-effective access to world-class expertise and facilities that is further enhancing our know-how and capabilities.

 

Mike Kirk, Executive Chairman of Quadrise said:

 

"This has been a transformative year for Quadrise,  with substantial progress in  our key trial projects in the marine and power markets.  In addition, we have continued to selectively build our resources to support these projects and our plans for the migration to commercial operations during 2017. We look forward to being able to report continued progress for the remainder of 2016 and 2017." 

 

This announcement is inside information for the purposes of article 7 of 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

 

Jason Miles, Chief Operating Officer

 

 

Nominated Adviser

 

Smith & Williamson Corporate Finance Limited

 

Dr Azhic Basirov

+44 (0)20 7131 4000

Ben Jeynes

 

 

 

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

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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