Quadrise Plc · LSE:QED
Quadrise — Shareholder Meeting (November 2014)
19 slides from Quadrise's shareholder meeting presentation, Nov 28, 2014
Slide 1: 2014 AGM Update
MSAR®$;$a$low$cost$subs>tute$for$heavy$fuel$oil$ Power$genera>on,$Marine$fuels,$Refinery$refuelling$ 2014$AGM$Update$ www.quadrisefuels.com$ 28.$11$.$2014$
Slide 2: Executive Chairman statement
“This%is%an%exci+ng%and%rewarding%+me%for%the%Company,% our%partners%and%clients,%and%our%shareholders%with%the% an+cipated%realisa+on%of%con+nuous%commercial%revenues% in%2015”.% Ian$Williams$ Execu>ve$Chairman$ Annual&Report&and&Financial&Statements&2014&
Slide 3: Highlights
“Considerable&progress&towards&commercial&revenues” & Highlights% • Posi>ve$results$from$seaborne$trials$leading$to$Mærsk$ confirma>on$of$“Proof$of$Concept”% • Akzo$Agreements:$world;wide$rights$to$formula>ons$&$ technology% • Programme$agreed$to$produce$MSAR®$at$major$Saudi$refinery$ poten>ally$leadi
Slide 4: Marine MSAR with Mærsk
Marine$MSAR®$with$Mærsk $ The%Market:% • 200$mtpa$market$–$fully$accessible$ • Increasing$emission$standards$ • Intense$freight$compe>>on$ • Fuel$=$75%$of$opera>ng$cost$ Quadrise%/%Mærsk:% • Cost$&$emission$opportunity$ • Land$&$Seaborne$trial$programme$completed$with$OEMs$ • Mærsk$“Proof$Of$Concept
Slide 5: Development & De-risking of Marine MSAR
Development$&$De;risking$of$Marine$MSAR®$ Risk% Mærsk%Joint% Land%based% Development% marine%engine% Soroe%Mærsk% Agreement% tests% Manufacture% Seaborne%trial% LONO% March%2010% Land%based% of%Marine% Seaborne% Mærsk%/%QIL% 1Q%2012% Joint%supply% cerMficaMons% RTX4%% MSAR®2%at% Proof%of% Marine%MSAR
Slide 6: Saudi: MSAR Production & Fuel Substitution Project
Saudi:$MSAR®$Produc>on$&$Fuel$Subs>tu>on$Project $ The%Market:% • One$of$the$highest$global$energy$consumers$per$capita$ • $$17$billion$dis>llate$fuel$imports$per$annum$ • Power$genera>on$uses$over$30$mtpa$(crude$oil,$fuel$oil$&$diesel)$ • Na>onal$impera>ve$to$reduce$crude$oil$consump>on$ Quadrise%/
Slide 7: Other active projects
Other$ac>ve$projects $ Global%Oil%Major:% • Mul>;site$opportunity$ • Senior$management$anen>on$ • Lab$test$on$European$residue$completed$ • Both$marine$&$power$op>ons$for$MSAR®$ • Candidate$for$marine$supply$programme$ Asia%:%YTL%PowerSeraya%refuelling%(Singapore):% • Former$Orimulsion®$consumer$–$1
Slide 8: AkzoNobel relationship
AkzoNobel$rela>onship$ • The$AkzoNobel$rela>onship$remains$central$to$the$Group$ • Alliance$Agreement$superseded$by$two$new$principal$contracts;$ Joint$Development$Agreement$&$Exclusive$Commercial$Agreement$ Summary:% • AkzoNobel$will$provide$technical$exper>se$to$support$the$JDA$ • AkzoNobel$to$sup
Slide 9: Adding Value - Emerging Developments
Adding$Value$;$Emerging$Developments$ • Sound$progress$on$resourcing$&$structure$ • Poten>al$to$extend$the$business$mode$ • Plant$&$process$opportuni>es$to$improve$economics$ • Security$of$Intellectual$Property$–$patent$applica>ons$ • Independent$R&D$capabili>es$ 9$
Slide 10: Anticipated realisation of commercial revenues
“…an+cipated%realisa+on%of%commercial%revenues”% • Industry$gamechanger$with$sound$fundamentals$$ • Huge$interna>onal$market$$ • Partnering$with$major$world$class$industry$players$ • Uniquely$experienced$management$team$ • Technically$verified$&$commercial$poten>al$demonstrated$ • Limited$compe>>on$
Slide 11: Appendix - Technology
MSAR®$;$a$low$cost$subs>tute$for$heavy$fuel$oil$ Power$genera>on,$Marine$fuels,$Refinery$refuelling$ 2014$AGM$Update$ Confiden>al$ $ Appendix$;$Technology$ $ www.quadrisefuels.com$ 28.$11$.$2014$
Slide 12: MSAR – a game changing emulsion fuel
MSAR$–$a$game$changing$emulsion$fuel…$ 5%microns% 80%–%100%% microns% =%Complete%Carbon%Burnout% Fuel%oil%droplet% MSAR®%droplet% A$stable$‘OilVinVWater’%emulsion$system:$ • Tiny$droplets$of$extra;heavy$hydrocarbon$ • Dispersed$in$water$$ • Using$proprietary$addi>ves$ Key%benefits:%% ! Viscosity$redu
Slide 13: Tremendous value added, at low cost
Tremendous$value$added,$at$low$cost…$ Price$spreads$sustained$–$projected$to$con>nue$ A%200,000%bbl/d%refinery%gains%up%to%$%100%million/annum% (shared%between%Refinery,%Consumers%&%Quadrise)% 13$
Slide 14: This value is shared
This$value$is$shared… $ Life%of% 2 Fuel%oil%consumers%save%on%costs% project% agreement% 1 Refinery%margins%% increase% 3 Quadrise%benefits%from% license%&%service%fees% 4 AkzoNobel%benefits% Quadrise%is%the%“Integrator”% from%chemicals%sales$ • Establish%market%for%MSAR®% • Provide%licence%&%experts%
Slide 15: Three potential modes of operation
Three$poten>al$modes$of$opera>on… $ Mode% DescripMon% ImplicaMons% Licence% Refinery%owns%the% • Appropriate%for%current%phase%of%development% processing%plant%&% • No%capex%&%minimal%working%capital% equipment% • Margin%based%on%supplies%&%services% Toll% Quadrise%owns%a%ringV • Hydrocarbons%owned%b
Slide 16: Important environmental advantages
Important$environmental$advantages $ 1.%Energy%Savings% ! MSAR®%stored%&%transported%at% lower%(ambient)%temperatures% 2.%Lower%NOx%&%ParMculates%(Black%Carbon)% ! Lower%combusMon%temp% ! Complete%burnout%% =%20%%lower%NOx%emissions% =%lower%parMculate%emissions% 3.%Affordable%Compliance% ! Marine%su
Slide 17: Appendix - Oil Economics
MSAR®$;$a$low$cost$subs>tute$for$heavy$fuel$oil$ Power$genera>on,$Marine$fuels,$Refinery$refuelling$ 2014$AGM$Update$ Confiden>al$ $ Appendix$–$Oil$Economics$ $ www.quadrisefuels.com$ 28.$11$.$2014$
Slide 18: Resilience of the Quadrise Economic case
Resilience$of$the$Quadrise$Economic$case $ The$economics$of$MSAR®$are$driven$principally$by$the$“spread”$in$refinery$ Fuel$oil$(HFO)$and$Gasoil$(MGO)$values$and$not$the$absolute$crude$oil$price.$ During$the$last$4$years$the$~$300;400/mt$has$supported$the$MSAR®$case,$$$ this$is$s>ll$the$case$today$wit
Slide 19: Increased distillate demand in the marine market
$ Increased$dis>llate$demand$in$the$marine$market • Following$the$2015$change$in$marine$fuel$ The$“spread”$between$Gasoil$and$ sulphur$limit$(to$0.1%S)$there$will$be$a$ Fuel$Oil$(HSFO)$is$predicted$to$widen$ significant$increase$in$Marine$Gasoil$ in$the$future,$further$suppor>ng$the$ (MGO,$or$Diesel)