Quadrise Fuels International PLC Maersk Notification (2325E)
04 May 2017 - 11:55PM
UK Regulatory
TIDMQFI
RNS Number : 2325E
Quadrise Fuels International PLC
04 May 2017
4 May 2017
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
Maersk Notification
Quadrise Fuels International plc (AIM:QFI), the emerging
supplier of MSAR(R) 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 and supply partner CEPSA have been formally
notified by Maersk Line A/S ("Maersk") of its intention to let the
Operational Trial Agreement between the parties expire once the
MSAR(R) fuel currently on-board the test vessel has been consumed
(the "Notification").
Further to the Company's announcement of 7 April 2017, Maersk
has now formally notified the Company of its intention, in
achieving compliance with the International Maritime Organisation's
("IMO") 2020 sulphur limit environmental legislation, to use only
compliant fuel (less than 0.5% sulphur) from 2020 and that the use
of MSAR(R) alongside exhaust gas scrubbers ("Scrubbers") will not
be considered as an option for Maersk going forward.
Marine MSAR(R) supplied to date has been higher than 0.5%
sulphur and one option in the future is to use such fuel together
with exhaust gas scrubbers ("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(R), 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.
As recently reaffirmed by Maersk, the MSAR(R) operational trial
has been successful to date and this should be further confirmed by
the interim inspection report and Interim LONO from Wärtsilä.
Following receipt of the Notification the Company is continuing to
work with Maersk to progress the release of the interim inspection
report and an Interim LONO for MSAR(R) use and to clarify Maersk's
previously confirmed intention to work collaboratively with QFI to
use the aforementioned to progress the commercialisation of MSAR(R)
to the wider global marine industry.
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(R) will enable operators to
obtain additional economic and environmental advantages over the
use of heavy fuel oil. As noted in the announcement of 7(th) April
2017, the commercialisation of Marine MSAR(R) will now be focused
on other operators and we are actively working on this, though this
will have a longer lead-time than the originally envisioned plans
with Maersk.
Mike Kirk, Executive Chairman, said:
"As we have previously highlighted, whilst Maersk's decision is
disappointing, we are working hard to ensure that we can gain the
benefit from the positive results of the trial to date. We are
actively engaged with Maersk to progress the interim inspection
report and interim LONO.
The underlying opportunity remains substantial and many in the
marine fuel and refining industries see the use of high sulphur
fuel and scrubbers as the most economic option for compliance with
the 2020 IMO sulphur regulations.
It is also important to note that this decision by Maersk is
enabling both QFI and Cepsa to further progress plans for the use
of the spare MSAR(R) production capacity for new customers in the
marine and power markets."
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
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