Quadrise Plc · LSE:QED
Quadrise — Shareholder Meeting (November 2013)
15 slides from Quadrise's shareholder meeting presentation, Nov 15, 2013
Slide 1: 2013 AGM Update
MSAR® - a low cost substitute for heavy fuel oil Power generation, Marine fuels, Refinery refuelling 2013 AGM Update Confidential www.quadrisefuels.com 15. 11 . 2013
Slide 2: A stronger foundation has been built over the past year
“A stronger foundation has been built over the past year …the company well placed to transition to the early commercial phase in 2014. Once this has been accomplished…the pace of growth thereafter in both existing and new programs could be very rapid” Ian Williams Executive Chairman Annual Report an
Slide 3: A stronger foundation built over the past year: Highlights
“A stronger foundation built over the past year” Highlights • Q4 seaborne “proof of concept” assessment of Marine MSAR® • New agreements with AkzoNobel • Major Refinery & Power complex designated by Aramco • Ecopetrol Regional Joint Venture feasibility programme • Successful formulation with Global
Slide 4: 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 ‘Oil-in-Water’ emulsion system: • Tiny droplets of extra-heavy hydrocarbon • Dispersed in water • Using proprietary additives Key benefits: Viscosity reduced using wat
Slide 5: Tremendous value added, at low cost
Tremendous value added, at low cost… Price spreads sustained – projected to continue A 200,000 bbl/d refinery gains up to $ 100 million/annum (shared between Refinery, Consumers & Quadrise) 5
Slide 6: 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 • Install equ
Slide 7: Three potential modes of operation
Three potential modes of operation… Mode Description Implications 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 ring- • Hydrocarbons owned by the re
Slide 8: Important environmental advantages
Important environmental advantages 1. Energy Savings MSAR® stored & transported at lower (ambient) temperatures 2. Lower NOx & Particulates (Black Carbon) Lower combustion temp Complete burnout = 20% lower NOx emissions = lower particulate emissions 3. Affordable Compliance Marine sulphur li
Slide 9: Active Projects: Marine MSAR with Maersk
Active Projects: Marine MSAR® with Mærsk The Market: • 200 mtpa market – fully accessible • Intense freight competition • Increasing emission standards • Fuel = 75% of operating cost Quadrise / Mærsk: • Cost & emission opportunity • First seaborne trial guided development • MSAR®2 run on Wärtsilä la
Slide 10: Saudi Arabia: Refinery upgrade with Saudi Aramco
Saudi Arabia: Refinery upgrade with Saudi Aramco The Market: • Highest global energy consumption per capita • $ 20 billion distillate fuel imports per annum • Power generation uses 30 mtpa crude oil & fuel oil • National imperative to reduce crude oil consumption Quadrise / Rafid / Saudi Aramco • Mu
Slide 11: Central & South America
Central & South America Regional Market: • Large scale imports of diesel & exports of fuel oil • Scope for significant value-add to regional refineries • Power & marine fuel substitution Quadrise • PEMEX “parked” • Nexidea & Ecopetrol agreements • Business case presentation to senior mgt • Prospecti
Slide 12: Other active projects (Asia & Oil Majors)
Other active projects (Asia & Oil Majors) Asia : YTL PowerSeraya refuelling (Singapore) • Former Orimulsion® consumer - 1.8 mtpa • MOU renewed – keen to proceed Global Oil Major • Multi-site opportunity • Senior management attention • Both marine & power options for MSAR® • Lab test on European resi
Slide 13: AkzoNobel relationship
AkzoNobel relationship • The AkzoNobel relationship remains central to the Group • Alliance Agreement to be superseded by two new principal contracts; Joint Development Agreement & Exclusive Commercial Agreement Summary: • AkzoNobel will provide technical expertise to support the JDA • AkzoNobel to
Slide 14: Emerging features for the Group
Emerging features for the Group • Planned work programme versus resources & structure • Resource constraints on extending the business mode • Plant & process opportunities to improve economics • Security of Intellectual Property – patent applications • Independent R&D capabilities 14
Slide 15: The pace of growth could be very rapid
“…the pace of growth could be very rapid” • Industry gamechanger with sound fundamentals • Huge international market • Partnering with major world class industry players • Uniquely experienced management team • Technically verified & commercial potential demonstrated • Limited competition A stronger