Project Agreement with MSC and Cargill

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 MAC² 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.

MAC² 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 MAC² 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 MAC² 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:

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

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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.