REG - Quadrise PLC - Project Agreement with MSC and Cargill

QuadriseAnnouncement

26/11/2024 07:00

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RNS Number : 5867N  Quadrise PLC  26 November 2024

26 November 2024

 

Quadrise Plc
("Quadrise" or the "Company")

 

Collaboration and Operational Trial Agreement with MSC and Cargill

 

Quadrise Plc (AIM: QED), the supplier of innovative energy solutions for a
cleaner planet, is delighted to announce the signature of a Collaboration and
Operational Trial Agreement (the "Project Agreement") with MSC Shipmanagement
Ltd ("MSC") and Cargill NV ("Cargill"), paving the way for the long-awaited
vessel trials on board the MSC Leandra (the "Trials").

 

Further to the Company's announcement of 10 July 2024, and under the Project
Agreement, Quadrise, MSC and Cargill have agreed their respective obligations
under which the Company's fuels, bioMSAR™ and MSAR®, will be produced at
the MAC(2) facility in Antwerp, Belgium using feedstocks supplied by Cargill
and then sold by Cargill to MSC for the Trials.

 

The parties to the Project Agreement will use their reasonable endeavours to
contribute towards the successful Trials and to receipt of a final Letter of
No Objection from Wärtsilä following 4,000 hours of bioMSAR™ testing,
with:

·    Quadrise providing equipment, additives and technical expertise; and

·  MSC providing the trial vessel, MSC Leandra, necessary flag state
approvals for the Trials and procuring professional monitoring services for
the Trials; and

·    Cargill providing the necessary feedstocks, transportation of fuels
and operational and logistical support.

 

MAC(2) have already received the required operating permits for installation
of Quadrise equipment and have prepared the site. Following signature of the
Project Agreement, final work to enable Quadrise equipment to be delivered to
the MAC(2) site can now be completed, enabling the Trials to commence before
end Q1 2025.

 

In parallel, bilateral agreements, including a toll manufacturing agreement
between Cargill and Quadrise in respect of fuel manufacture, can be finalised
now that the outline commercial terms have been agreed in the Project
Agreement.

 

Upon successful conclusion of the Trials, MSC, Cargill and Quadrise will
negotiate and enter into a definitive long-term Commercial Agreement.

 

The Project Agreement will expire on the sooner of: (1) One year following
completion of the Trials; (2) Commencement of a Commercial Agreement.

 

Commenting on this agreement Jason Miles, CEO of Quadrise, said:

"Quadrise is delighted to have signed this pivotal agreement with MSC and
Cargill, which triggers the process for the trials to get underway. We are
hugely excited to be partnering with world-leading Companies to demonstrate
the commercial viability and environmental benefits of our technology and the
contribution it can make to decarbonisation of the shipping sector. Having
already successfully demonstrated MSAR® on the trial vessel, we are highly
confident of a successful trial result on bioMSAR™ and the substantial
commercial opportunities that this will lead to."

 

 About the MSC Vessel Trials

 

The Trials will be carried out on the MSC Leandra, previously used for prior
successful MSAR® demonstrations, following the installation and commissioning
of Quadrise equipment at the MAC(2) facility in Antwerp, Belgium and are
expected to commence before end Q1 2025.

 

The Trials will commence with Proof of Concept ('POC') tests using MSAR® and
bioMSAR™. Each POC Trial is estimated to require around 1,000 metric tons
("MT") of fuel to confirm engine performance on the vessel.

 

Subject to positive results from the POC Trials, the fuels will undergo
subsequent trials to provide commercial operating experience with a view to
obtaining Letters of No Objection ("LONOs") from the engine manufacturer after
confirming the operational viability of bioMSAR™ and MSAR® at both an
interim (midway) and final stage (after circa 4,000 operating hours). During
the LONOs it is planned that barge deliveries of up to 1,500MT of Quadrise
fuels will be supplied to the MSC vessel every 4-6 weeks for the Trials, over
a period of 6-8 months.

 

Upon completion of the Trials and receipt of the LONO, or when sufficient
progress has been demonstrated to the satisfaction of MSC, Cargill and
Quadrise (the "Parties"), the Parties plan to conclude long-term commercial
agreements within three months of achieving this milestone.

 

Additionally, MSC and Quadrise will continue discussions with other marine
engine suppliers to investigate testing bioMSAR™ and MSAR® on their engines
and will also explore opportunities to test the Quadrise Blend-on-Board
solution which will open up new possibilities for tramping vessels and provide
additional flexibility on bioMSAR™ supply.

 

 

For additional information, please contact:

 

 Quadrise Plc                                            +44 (0)20 7031 7321
 Andy Morrison, Chairman

 Jason Miles, Chief Executive Officer

 Nominated Adviser
 Cavendish Capital Markets Limited                       +44 (0)20 7220 0500
 Ben Jeynes

 Katy Birkin

 George Lawson

 Joint Brokers
 Shore Capital Stockbrokers Limited                      +44 (0)20 7408 4090

 Toby Gibbs, Rachel Goldstein (Corporate Advisory)

 Fiona Conroy (Corporate Broking)

 VSA Capital Limited                                     +44 (0)20 3005 5000

 Andrew Raca (Corporate Finance)

 Andrew Monk (Corporate Broking)

 Public & Investor Relations
 Cutbill Jacoby

 Andy Cutbill                                            +44 (0)7841 576000

 Frankie Dundon                                          +44 (0)7312 274086

 

About Quadrise:

Quadrise is the supplier of MSAR® and bioMSAR™ emulsion technology, fuels
and biofuels, providing innovative solutions to lower energy costs, pollution
and greenhouse gas emissions today for the global power generation, shipping,
industrial and oil industries.

Learn more at: www.quadrise.com
(https://url.avanan.click/v2/___http:/www.quadrise.com/___.YXAxZTpzaG9yZWNhcDphOm86ZDliYjk0YWMyYzJkMTg2OGJmODhlN2Y5YTIwMzEwOTc6Njo4MGY3OmNiOTg0OWU2Y2NlZWU0NGE3NzYwZTUyMmI4OGQ2ZDJmZWE2NzM1Mzc3YjRkNGYwMTQwMmVhY2E5ZTRkOGQzYjE6cDpU)

 

Follow us on social media:

LinkedIn: @Quadrise Plc
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This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

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