24th Feb 2014 12:19
LONDON (Alliance News) - Quadrise Fuels International PLC Monday said it has signed a new royalty agreement with AP Moller-Maersk for its marine MSAR fuel which extends it for a further three years to the end of 2022 and sets out the terms and legal framework for other deals once the fuel goes into commercial production.
In a statement, the developer of fuel oil alternatives for the shipping, refining and power generation markets, said the new deal for the supply of its Marine MSAR fuel to the world's biggest shipping company provides the legal framework and key terms for future commercial supplies of the fuel to Maersk and to third parties.
The fuel is currently in development, but the new royalties agreement sets out the terms for when it goes into commercial production. The company is hoping that will happen in the second half of this year.
In a separate statement, Quadrise said the two seaborne programmes which are testing the fuel for Maersk are progressing
It said the first phase of a programme with Wartsila has been completed and the ship engine had performed in line with expectations and consistent with land-based tests. A second phase will test the fuel with high loads and continuous operations.
However a test with MAN Diesel has been hit by delays which Quadrise blamed on third parties. It said the optimum settings for seaborne service hadn't been determined because land-based tests hadn't yet been carried out. Quadrise said it now expects proof of concept in the second quarter.
Quadrise said it had also made progress on the installation of its technology in Saudi Aramco refineries. It said both sides want the fuel system designed, installed and operational to demonstrate supply to a power generation facility by the fourth quarter of this year.
Meanwhile, it is still working to complete a manufacturing feasibility study during the current quarter for the Ecopetrol refinery in Colombia.
Quadrise Fuels shares were up 9.2% at 37.4 pence midday Monday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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