Quadrise Plc · LSE:QED
Quadrise — Quadrise Fuels International — Shareholder Meeting (December 2016)
25 slides from Quadrise's shareholder meeting presentation, Dec 2, 2016
Slide 1: Quadrise Fuels International plc
(Quadrise Fuels International plc
Slide 2: 2016 Annual General Meeting
2016 Annual General Meeting 12pm December 2nd - Hilton Double Tree 2
Slide 3: Introduction
Introduction • Quadrise is the supplier of MSAR® technology that produces a lower cost, cleaner synthetic Heavy Fuel Oil (“HFO”) for marine, power and industrial applications • MSAR® is proven, proprietary oil refinery technology offering material economic and environmental benefits to producers and
Slide 4: The $106 billion HFO market
The $106 billion HFO market Industrial & Other 28% Quadrise is focused on two major sectors: Marine ($48 bn/annum) …concentrated in 5 main sales hubs Power 27% Power generation ($28 bn/annum) Marine 45% …main consumers: the Middle East and Asia Worldwide some 455 million tonnes of HFO is sold annual
Slide 5: Significant Progress
Significant Progress • 2016 is proving to be a pivotal year for Quadrise • Significant progress made in core marine and power generation projects: • Marine operational trial with Cepsa and Mærsk commenced in July, progressing well • A successful outcome is key to establishing commercial contracts fo
Slide 6: Technology – driving value delivery
Technology – driving value delivery Quadrise license and supply MSAR® MSAR® provides refiners with Delivers HFO consumers with technology and additives to produce low-cost, rapidly deployed tangible cost savings and a stable ‘Oil-in-Water’ emulsion fuel upgrading solutions for HFO environmental bene
Slide 7: Economic drivers
Economic drivers Creating value at the refinery - shared with consumer* and Quadrise Traditional refinery process An MSAR® refinery 50% 30% 70% 30% HFO example Refinery 60% residue Refinery MSAR® 70% residue HFO 30% water & output 40% diluent output chemicals 20% Water & <1% chemicals Every barrel o
Slide 8: Environmental Benefits
Environmental Benefits 1. Energy Savings MSAR® Benefits ü MSAR® is stored & transported at ambient temperatures (>25oC) MSAR® use = Lower Cost Fuel + Less Heating + Reduced NOx With MSAR®: 2. Efficient Combustion and PM/BC Emissions Tiny droplets of ü Complete Carbon burnout hydrocarbons are = lower
Slide 9: Environmental Compliance
Environmental Compliance Increased focus on emissions in Marine sector: Oxides of Nitrogen (NOx): • New build engine limits have reduced MSAR® Benefits: >20% lower NOx by over 75% in 2016 ü Tier II engines can be tuned for fuel efficiency • Tier III compliance options are ü Tier III compliance costs
Slide 10: Key Projects
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Slide 11: Marine MSAR® for Diesel Engines
Marine MSAR® for Diesel Engines • MSAR® is proven on Wärtsilä 4-stroke engines • 2 stroke engine application on the final stage of testing by Mærsk • “Operational Trial” contracts with Cepsa and Mærsk signed Q4 2015 • Fast-track operational commercial-scale MSAR® facility installed within 9 months >
Slide 12: Marine MSAR® - Progress
Marine MSAR® - Progress • A 6KBPD MSAR® system is installed at the Cepsa 240,000 BPD* Gibraltar San Roque Refinery • Quadrise responsible for MSAR® system installation, commissioning, production & quality control • MSAR® production & Mærsk vessel testing progressing well, interim vessel inspection S
Slide 13: Power MSAR® - Kingdom of Saudi Arabia (KSA)
Power MSAR® - Kingdom of Saudi Arabia (KSA) Replace oil used for power with MSAR® Jordan Iraq Iran Kuwait • Total oil use for power generation is currently ~51mtpa Saudi Arabia • Significant imports of distillate products and subsidies for domestic products and energy sales UAE • 2015 fuel mix : Oma
Slide 14: Power MSAR® – 400MWe Trial – KSA
Power MSAR® – 400MWe Trial – KSA • West coast trial candidates established: - Major refinery complex with nearby utilities supply - Largest oil-fired power generation facility in KSA • Scope of demonstration: Refinery production of MSAR® & associated coastal supply to… …a modern 400MWe* baseload uni
Slide 15: Delivering value globally
Delivering value globally Complementary Marine Opportunities • Initial focus supporting commercial • Refinery power & steam roll out with Maersk (Fleet of 285 opportunities owned vessels and 305 managed) 9.5M mt/a (6% of marine fuel market) • Synergies of working Power collaboratively with • Expand
Slide 16: Results for YE June 2016
Results for YE 30 June 2016 • Loss after tax of £4.8 million (2015: £4.9 million) • Cumulative tax losses of £41.1 million (2015: £40.7 million) available for set-off against future profits • Further investment in R&D and operations support • £4.3 million in cash reserves at YE and debt free • Placi
Slide 17: Summary Q&A
Summary Q&A • MSAR® is a disruptive technology in the downstream oil sector • Substantial progress made in final stage commercial trials for both the marine fuel and power generation markets with major global clients • Quadrise poised to move into commercial operations during 2017 • Executive and ma
Slide 18: Quadrise Fuels International plc
(Quadrise Fuels International plc
Slide 19: Supporting Information
(Quadrise Fuels International plc Supporting Information
Slide 20: Marine MSAR® Development history
Marine MSAR® Development history • MSAR® has already been proven in Wärtsilä 4-stroke diesel engines • Joint development with Mærsk commenced in 2008 to demonstrate MSAR® use in large 2-stoke diesel propulsion engines • Laboratory and land-based tests completed during 2009-2013 • Two sea-borne “proo
Slide 21: AkzoNobel relationship
AkzoNobel relationship • The AkzoNobel relationship remains central to the Group • Two principal contracts; Joint Development Agreement (JDA) & Exclusive Commercial Agreement Summary: • AkzoNobel provide technical expertise to support the JDA • AkzoNobel supply additives under the Exclusive Commerci
Slide 22: Pioneering Research, Development & Innovation
Pioneering Research, Development & Innovation • UK Research Facility (QRF) • Product development to enhance economics & efficiency • Fuel emulsion testing from lab to industrial scale • QRF is the central service centre for operations support • University of Surrey – Research Collaboration • Centre
Slide 23: Technology: Refinery “Plug & Play”
Technology : Refinery “Plug & Play” Refinery integration of the MSAR® blending system: “Semi-complex” Refinery Premium 1) Oil residues are taken direct from refinery and cooled to Crude fuels achieve the required viscosity for the colloid mill. Residue 2) Water together with proprietary additives ar
Slide 24: Environmental Compliance
Environmental Compliance Marine SOx Compliance Options Future post 2020 is expected to Compliant Fuel (e.g. 0.5% “fuel oil” or LNG): be a mix of these two options, • Likely to drive additional 2-4MB/D increased distillate demand with scrubbers expected to be preferred choice for large fleets • Sprea
Slide 25: Quadrise Fuels International plc
(Quadrise Fuels International plc
Quadrise Fuels International — Shareholder Meeting (December 2016) on 6ix