Tue 27 Mar 2018, 13:31 GMT

Quadrise chairman upbeat despite 'hugely disappointing' Saudi setback


UK firm presses on with plan to develop series of MSAR projects; posits that interest in scrubbers has 'intensified'.


Mike Kirk, Executive Chairman of Quadrise Fuels International plc.
Image credit: Quadrise Fuels International
The Executive Chairman of Quadrise Fuels International, Mike Kirk, on Tuesday said it was "hugely disappointing" that all the agreements required to move forward with its production-to-combustion trial in Saudi Arabia had not been obtained.

As a result of the delays, the refinery firm involved in the process has warned that it may no longer be in a position to support the project if the certain agreement documents are not signed by April 1.

In terms of trying to find a viable solution to the problem, Kirk explained that the company would "continue to review parallel options to progress this project with an alternative refinery partner", but admitted that this was "unlikely to be deliverable" in the short term.

Kirk added that Quadrise was also looking at alternative projects to establish MSAR in the power market, including those that could potentially use the MSAR manufacturing facility on site.

"Our refinery partners have continued to be very supportive of Quadrise and we look forward to being able to discuss further potential trial and commercial projects with them in due course. We are, alongside this, continuing our existing business development activities to build a series of MSAR projects in both the power and marine markets," Kirk remarked.

As developer of a high-sulphur, low-cost alternative to heavy fuel oil that will need to be used in conjunction with scrubber technology in order to comply with IMO's 0.5% global sulphur cap in 2020, Quadrise posited in its latest financial summary that interest in scrubbers as a compliance option had "intensified" during the six-month period ended December 31, 2017. This is despite Maersk pulling out of its MSAR fuel trial last year, with the shipping giant deciding against the use of abatement technology as a strategy moving forwards.

"Given the widening price differentials between low[-] and high[-]sulphur fuels, we believe the economic case for MSAR will improve further moving forward to 2020 and beyond and Quadrise is increasing its engagement with shipping companies, engine and EGCS manufacturers to exploit this," Quadrise argued.

"The Company continues to explore selected opportunities with refinery and oil companies globally, linked to potential power and marine supply opportunities to take advantage of IMO 2020 price advantages for MSAR fuel," Quadrise added.


Sea Horizon vessel. Pinnacle Marine launches second B100-compatible harbour craft for Les Star  

Sea Horizon joins Singapore’s harbour craft fleet.

Ocean Breeze vessel. Sallaum Lines orders LNG-fuelled, ammonia-ready PCTCs from Chinese yards  

Operator signs shipbuilding agreements for new generation of 8,600-CEU vessels, taking its newbuild investment past $1bn.

Energy North vessel. Nakilat takes delivery of dual-fuel carrier in South Korea  

Ammonia-ready design positions vessel to play key role in future low-carbon energy supply chains, says Qatari firm.

Acta Hercules naming ceremony. Acta Marine christens methanol dual-fuel vessel Acta Hercules in IJmuiden  

Dutch operator marks the christening of its second newbuild CSOV.

Maran Melina vessel. Angelicoussis Group takes delivery of fifth dual-fuel Suezmax tanker  

Maran Tankers Management adds the 155,500-DWT Maran Melina to its fleet.

CMA CGM Orsay naming ceremony. CMA CGM takes delivery of LNG-powered Orsay for Asia-Europe trade  

24,212-TEU vessel joins 10-ship series, adding capacity to the carrier's FAL3 route.

Titan Unikum vessel. Titan Clean Fuels completes 15-year survey on LNG bunkering vessel Titan Unikum  

Multi-gas carrier has undergone dry-docking work at a Chinese yard, preparing it for future upgrades.

Aesen 116H vessel. Lehmann Marine’s CUBE battery system debuts in China aboard hybrid crew boat  

German battery maker’s first Chinese installation targets fuel savings on a Cheoy Lee-built vessel for a Singapore operator.

Person signing a document. Iino Lines secures transition loan from Mizuho Bank for LPG dual-fuel VLGC  

Japanese shipowner finances the acquisition of Lumi Aurora through a green transition finance framework aligned with ICMA guidelines.

ABS, HD KSOE and Siemens MoU signing. ABS, HD KSOE and Siemens partner on digital twin technology for ammonia-fuelled ship safety  

Three firms will combine CFD analysis and digital twin technology to assess ammonia leak scenarios in vessel design.