Quadrise Fuels International PLC End of Year Update (2045D)
July 05 2016 - 02:00AM
UK Regulatory
TIDMQFI
RNS Number : 2045D
Quadrise Fuels International PLC
05 July 2016
5 July 2016
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
End of Year Update
Quadrise Fuels International plc (AIM: QFI) is the emerging
manufacturer and supplier of MSAR(R) emulsion fuels, a low-cost
alternative to heavy fuel oil (one of the world's largest fuel
markets, with volumes of over 450 million tonnes per annum) in the
global shipping, refining, steam and power generation markets.
Further to the Company's announcement of its half year results,
on 21 March 2016, the Company is pleased to provide an update on
its key projects since that date.
Excellent progress has been made with the marine project during
the period. As noted in the Company's announcement of 17 March
2016, the MSAR(R) Manufacturing Unit ("MMU") and associated systems
were shipped to the Gibraltar San Roque Refinery owned by Compañía
Española De Petróleos S.A.U. ("CEPSA"). The first batch of Marine
MSAR(R) has been manufactured and was subsequently transferred from
the refinery via a bunker fuel barge to the vessel designated by
Maersk Line for the Operational Trial. The Operational Trial is
expected to continue to provide 4,000 hours of engine operation on
MSAR(R), over a period of approximately 9 months (as the vessel
route also encompasses an Emission Control Area for some periods,
where lower sulphur bunker fuel is used). We do not anticipate
providing regular updates as the trial progresses, but we look
forward updating shareholders during our Annual General Meeting at
year end and being able to confirm a successful conclusion of the
trial in the Spring of 2017.
Alongside the project at CEPSA, we have continued to make good
progress with other refiners to underpin the commercial roll-out of
marine MSAR(R) fuels for the shipping industry, post the successful
conclusion of the operational trial programme.
There has also been significant engagement with our clients in
the Kingdom of Saudi Arabia on the production to combustion pilot
programme during the period. Whilst there has been regular
constructive dialogue with the clients, and progress has been made
during the period, it is at a slower pace than the project
stakeholders had originally envisaged. The launch of "Saudi
Arabia's Vision 2030"* economic reform plan in April 2016 has
indirectly had a short-term impact on the clients' decision making
process for the programme. As a result, whilst the Company
continues to work collaboratively to agree terms for the
commencement of the project, it believes that the project
timescales are now likely to be extended beyond the spring of 2017.
The Company will provide a further update once its continuing
discussions have reached a conclusion and the revised timetable is
agreed.
With a focus during the period on ensuring the commencement of
the marine Operational Trial programme by mid-year, and progressing
the Saudi project, resource constraints have slightly delayed the
progress on the technical evaluation work we are undertaking for a
number of clients to confirm the suitability of specific refining
residues for MSAR(R) production. This work is now expected to be
completed during H2 2016.
Other opportunities in the power and refinery refuelling markets
continue to be pursued, but these are longer-term projects and we
were not anticipating any material developments in the short
term.
Our collaborative research programme with the University of
Surrey has made good progress and alongside our technical
partnership with Akzo Nobel, further strengthens our proprietary
technology and know-how relating to the production of MSAR(R)
fuels.
* Vision 2030 is the Kingdom of Saudi Arabia's plan for its
future development and includes enhancing its scale as a sovereign
wealth investor and for further developing and diversifying its
existing oil and mineral assets.
For further information, please refer to the Company's website
at www.quadrisefuels.com or contact:
Quadrise Fuels International Plc
+44 (0)20 7031
Mike Kirk, Executive Chairman 7321
Hemant Thanawala, Finance Director
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance
Limited
+44 (0)20 7131
Dr Azhic Basirov 4000
Ben Jeynes
Broker
Peel Hunt LLP
+44 (0)20 7418
Richard Crichton 8900
Ross Allister
Chris Burrows
Public & Investor Relations
Bell Pottinger
+44 (0)20 3772
Daniel Thöle 2569
This information is provided by RNS
The company news service from the London Stock Exchange
END
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