Quadrise Fuels gushes higher after signing Chinese agreement

Quadrise Fuels (QFI) shot up on Monday after entering into a memorandum of understanding with API POLY-GCL Alliance Limited work together on an exclusive basis to pursue commercial opportunities involving the production and supply of MSAR fuel in China.

The AIM traded company said the 24-month agreement covers marine power and industrial fuel consumers, and also specifies that subsequent commercial agreements between the parties will be structured so that Quadrise and API POLY-GCL will share the profits of any project delivered on the basis of the IP, resources and financial contributions of each party.

QFI's MSAR fuel alternative is a low viscosity liquid at room temperature, which makes it easier to handle and reduces the heating costs for storing, transportation and use in comparison to residual fuel oils.

Mike Kirk, executive chairman of QFI, said: "Utilising API POLY-GCL's related power assets and in-depth knowledge of China, we are planning to establish opportunities to progress regional MSAR projects in the power and marine sectors. This is a new and large market opportunity for Quadrise and offers the potential to deliver significant value to shareholders of both QFI and API POLY-GCL."

POLY-GCL Petroleum Group is a partnership between China's POLY Group and Golden Concord Holdings, a Chinese outfit with over 300,000 employees and has holdings in four business units covering power, oil & gas, photo-voltaics and finance.

Alvin Yip, co-chairman and chief executive of API POLY-GCL, said: "API POLY-GCL see significant potential for Quadrise's MSAR technology to add value to our power generation assets and downstream offering. We look forward to working with Quadrise to progress projects in a rapidly growing economy that is keen for energy efficiency and cleaner energy, where MSAR technology and fuel offers material economic and environmental advantages."

Yip added that he was hopeful that the first MSAR project in China would be initiated during 2019.

Quadrise Fuels' shares were up 11.52% at 3.68p at 1307 BST.