Quadrise Fuels International PLC said on Thursday it has received notification from Maersk Line AS that it will allow the operational trial agreement between the two companies to expire once Quadrise’s MSAR fuel on-board the test vessel has been consumed.
Trial expected to be a success:
The London-listed emulsion fuel manufacturer has been supplying its alternative fuel to the shipping giant to trial on one vessel, but that trial has been hampered due to Maersk’s vessel being called into operation. Although the trial is coming to a close, Maersk has supported Quadrise’s fuel and said the trial has been a success, albeit cut short.
Compliance with IMO rules:
The reason for the end of the agreement is Maersk’s intent to comply with the International Maritime Organization’s 2020 sulphur limit environmental legislation, which allows only the use of fuel with less than 0.5% sulphur from 2020 onwards, instead of installing exhaust gas scrubbers in conjunction with higher sulphur fuel.
Low cost alternative:
Quadrise’s MSAR fuel is intended to offer a low-cost alternative to heavy fuel oil, one of the world’s largest fuels markets consuming over 450 million tonnes of fuel each year, in the global shipping, refining and power generations markets.
Under the terms of the agreement, Maersk was trialling MSAR fuel on one of its vessels, however the vessel was called into operation for reasons unrelated to the MSAR fuel and could not be used to complete the trial. Originally, Maersk was looking to source another vessel to resume the trial in the last quarter of 2017, but has recently scrapped those plans.
Steady progress:
However Maersk has reaffirmed Quadrise that the MSAR operational trial has been successful to date, and will continue to work together to progress the release of the interim inspection report and an interim letter of no objection to confirm that MSAR fuel is safe to use.
“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. It is also important to note that this decision by Maersk is enabling both Quadrise and Cepsa to further progress plans for the use of the spare MSAR production capacity for new customers in the marine and power markets,” said Quadrise Executive Chairman Mike Kirk.
Shares in Quadrise closed down 33% at 3.66 pence on Thursday.
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Source: Morningstar
You claim to be fuel gurus but this article is factually incorrect. You state:
The reason for the end of the agreement is Maersk’s intent to comply with the International Maritime Organization’s 2020 sulphur limit environmental legislation, which allows only the use of fuel with less than 0.5% sulphur from 2020 onwards, instead of installing exhaust gas scrubbers in conjunction with higher sulphur fuel.
Yet from the IMO’s own website: http://www.imo.org/en/MediaCentre/PressBriefings/Pages/MEPC-70-2020sulphur.aspx?platform=hootsuite
Ships may also meet the SOx emission requirements by using approved equivalent methods, such as exhaust gas cleaning systems or “scrubbers”, which “clean” the emissions before they are released into the atmosphere. In this case, the equivalent arrangement must be approved by the ship’s Administration (the flag State).
Shame on you!