Quadrise to begin MSAR fuel trial with Maersk early 2016

Shares in Quadrise Fuels International jumped over 10% on Wednesday morning, after the group said trials on its flagship MSAR fuel technology will start at the beginning of next year.

The London-listed group has reached an agreement with Danish shipping giant AP Moller-Maersk and refiner group CEPSA to supply, install and commission a manufacturing unit to produce MSAR emulsion fuel at the CEPSA San Rogue refinery close to Gilbraltar.

Quadrise, which provides technology to the oil and gas industry, said the trial period is expected to last between nine to 11 months.

"MSAR provides potentially significant economic and environmental advantages for end users over conventional heavy fuel oil,” said group chairman Ian Williams.

“The economic case for MSAR remains solid despite the decrease in oil prices - and the cost of complying with ever more stringent environmental regulations is at the forefront of the industry."

The company added that, during the trial period, it will also provide process chemicals, support services and technical advices to CEPSA, with whom it has entered a bilateral agreement which clarifies the costs and benefits to be shared during the trial period.

The MSAR emulsion fuel oil product uses water to turn heavy oil into a low viscosity fuel with enhanced combustion properties.

Quadrise said it was also considering the opportunity to build a new pilot plant, which would be developed with an unnamed “mid-sized” refining company in an as yet undisclosed location.

Quadrise shares were up 8.94% to 12.80p at 1020 BST on Wednesday.