Quadrise (LSE:QED) — Annual General Meeting

0:01 Good afternoon, ladies and gentlemen, and welcome to the QUADRISE PLC Annual General Meeting. Throughout this meeting, attendees will be in listen only mode. Shareholders have had the opportunity to pre submit questions ahead of today's Annual General Meeting, and therefore, further questions will be taken online during this meeting. I'd also like to remind you that this meeting is being recorded. I'd now like to hand over, if I may, to Mike Kirk, chairman from QUADRISE PLC. Good afternoon, sir. Thank you. Right. Good afternoon, everyone. My name Mike Kirk. I'm the chairman, and

0:32 I'd like to welcome you to the annual general meeting of QUADRISE PLC. Thank you for attending today. And Is is there any microphones? The loud noise is. There aren't. I'll just make sure I speak up. May I remind you that this meeting is also being observed via the web and a video link provided by Investor Meet company. Just to clarify, though, only people in this room are formally attending the AGM. But before we move on to the formal business of the meeting and the business update presentation, I'd just like to introduce my colleagues from the board. And if I could ask perhaps perhaps to to start start with you, Laurie, and then work across that way. Thank you. I'm very much, and I will be taking over as interim chairman from the end of of today. Today.

1:27 Yep. I'm Bill Snape. One exec director. Do you have thoroughly competent, Terry? Jason Miles, CEO. Thank you. Yeah. I'll deal with Scott, head of finance, but I'm not a board member. The meeting today will be in two parts. The formal business of resolutions that are contained in the AGM notice sent to shareholders will be considered first. The the shareholders will be asked to vote on a show of hands. And the formal meeting will then be closed and will be followed by a business update presentation and q and a session.

2:05 So we can now now turn to the formal annual general meeting. The required quorum for the annual general meeting is present, and I formally declare the meeting open. The resolutions on which shareholders will be asked to vote are listed in the notice of annual general meeting that has been circulated to shareholders. And with the meeting's permission, I'd like to take the notice of meeting as read. Is that okay with everyone? Thank you very much. We are holding the OGM as an open meeting, and voting on each resolution put to the meeting will be on a show of hands. And we will be displaying the proxy votes received for each of the resolutions. And to avoid avoid any any confusion over voting, I'd like to remind the meeting that only those who have been given a voting card may vote on the resolutions put forward in the meeting.

2:56 Voting cards are being given to registered shareholders, appointed corporate representatives, and duly appointed proxies.

3:04 Should anyone wish to ask a question during the formal part of the meeting, I'd ask that they be kept limited to the formal resolution being put forward as would be an opportunity to ask more general questions after the formal part of the meeting has been concluded. And Jason has taken you through the business update presentation. If you do wish to ask a question, could I ask that you raise your hand, state your name, name, and whether you're a shareholder, proxy holder, or corporate representative before asking the question? I'll now turn to the formal resolutions to be considered in the meeting. And behind me, you will see now the summary of the proxy results that we have received on each each of of the the resolutions. Thank you. The first resolution is resolution one, which is to receive the annual reports and accounts of the company for the year ended 06/30/2021 and report of the auditors thereon.

4:02 Now before I put the resolution to the meeting, can I ask if there are any questions in connection with the proposed resolution? No. Thank you very much. I I will will now now put put the the resolution to the meeting. All those in favor, please raise their hand. Thank you. All those against, please raise their hand. Thank Thank you. You. I declare the resolution carried by the required majority.

4:33 The next resolution is resolution two, which is to reelect Philip Snaith as as a a director director of the company who is retiring in accordance with the company's articles of association. Can I ask if there are any questions in connection with the proposed resolution? Thank you. I will now put the resolution to the meeting. All those in favor, please raise their hand. Thank you. All those against, please raise their hand. Thank you very much. I declare this resolution carried by the required majority. Thank you. The next resolution is resolution three, which is to reappoint BDO LLP as auditors of the company to hold office from the conclusion of this AGM until the conclusion of the next AGM at which accounts are laid before the company and to authorize the directors to determine the auditor's remuneration.

5:32 Are Are there there any any questions in relation to this resolution? Thank you. I will now put the resolution to the meeting. All those in favor of the resolution, please raise their hand. Thank you. All those against the resolution, please raise their hand. Thank you. I declare the resolution carried by the required majority. The next resolution is resolution four, and this relates to the director's authority to allot shows sorry, to allot shares up to a limited amount of one third of the company's issued share capital. Text of this resolution is shown in the notice of annual general meeting. And with the meeting's permission, I would like to take the resolution, which is quite lengthy, as read, please.

6:24 Thank you. Before I put the resolution to the meeting, are there any questions in relation to this resolution? No? Thank you very much. I will now put the resolution to the meeting. All those in favor, please raise their hand. Thank you. All those against, please raise their hand. Thank you very much. I declare this resolution carried by the required majority. Thank you. The next resolution is resolution five that relates to the disapplication of preemption rights. This is a standard resolution that gives the company limited authority to to the directors to issue up to 5% of the company's issued share capital for cash, for example, in relation to a fundraising without offering those shares to existing shareholders.

7:18 And, again, the full text is in the notice of meeting. And if I could take that as read, thank Before I put the resolution to the meeting, can I ask if there are any questions in connection with the proposed resolution? No. Thank you very much. I now put the resolution to the meeting. All those in favor, please raise their hand. Thank you very much. All those against, please raise their hand. Thank you. I declare this resolution carried by the required majority. The final resolution is resolution six that also relates to the disapplication of preemption rights. This, again, is a standard resolution that gives limited authority for the directors to issue up to 5% of the company's issued share capital for cash without first offering those shares to existing shareholders provided that that this this power is only used in connection with an acquisition or other capital investment.

8:22 And, again, as before, if I can take the notice if I can take the wording of the resolution as read, please. Thank you. Before I put the resolution to the meeting, can I ask if there are any questions in relation to this resolution? No? Thank you very much. I will now put put the the resolution to the meeting. And all those in favor, please raise your hand. Thank you. All those against the resolution, please raise their hand. Thank Thank you. I declare the resolution carried by the required majority. Thank you. And just for those actually watching, I just want to confirm that within the meeting, meeting, all of those resolutions were were carried unanimously.

9:15 That concludes the formal business of the meeting. I declare the formal annual general meeting closed. They'll now follow a business update presentation followed followed by a q and a session. Thank you very much, everyone. I'm now gonna hand over to Jason, who will take you through the presentation.

9:36 Thank you, you, Mike, and welcome everyone to the room and also online. It's it's a great format to to be able to reach out to as many people as we can during quite interesting times at the moment. So without further ado, moving on from from a disclaimer. Obviously, this year, we've had a, you know, a very busy year. We've made some great progress, but also we've, you know, we've, you know, we've we've admit today, especially in terms of some of the updates, that some of the projects are not quite where we would like them to be. Feel free to ask, you know, specific very specific questions. I'll try and address each of the projects as we go along. But to give you some some highlights, you know, as we see it today.

10:24 Sorry. You got it, Dan? Yeah. I'm just trying to look at the bars. I think that's on okay. I don't know if can get rid of those, unfortunately. Just hover your mouse over the slides and away from the slide deck and remove the bars for you. I think that's on. That's That's on. I think we're quite to live with it. MSAR and BioMSAR, they really have a key role in accelerating the energy transition to net zero. But we're in a in the middle of a real dichotomy. There's a a space race going on at the moment where lots of people are chasing a dream with regards to green fuels, which requires a massive investment in new infrastructure and bring all sorts of additional problems to the world.

11:20 While back on Earth, there are some technologies today that we really believe are really key to pivotal pivotal transition process, which will immediately reduce emissions today. So we are looking to change the narrative. There's lots of headlines being met by very large companies promoting hydrogen and methanol, ammonia, all of which have their own features, some positive, some bad, and we'll try and put that into some perspective today. But we are looking to change the narrative. We really believe that we have a great part to play in the transition process. And we really feel that this is this is an area of the business that we can really develop both with MSAR and Bio MSAR.

12:06 Furthermore, we're not stopping there with what we're doing today. Driving r and d our RDI forward as well, looking at new opportunities and new means of producing a a net zero product. And it is important to say right here and now that net zero today is not really net zero in reality. If you're producing green methanol or you're producing green ammonia, you're actually only getting about 80 to 85% reduction in c o two. So it's there's no such thing as having zero c o two in the world with some of the options that are being put today to the marketplace. And we believe already we're getting very close to having something that's very tangible with the alternatives at much lower cost and significantly less requirements for infrastructure.

12:56 And in terms of changing the narrative, for a small company, we really are punching above our weight. We really really believe, you know, we really believe in what we're in what we're doing in the company. We're trying to get the message across to as many people as possible. We're getting good good airtime through some of the industry associations that we're working with, such as the UK Chamber of Shipping. And we're getting we're trying to get the message out to as many places as we can, obviously, with the resources that we have available. So we know we are we are really seeking to get to enhance the message both online in terms of some of the things we're saying through social media. And the work on the website is in progress as well to get to so people really fully understand the products that we're delivering and how they can help the transition process.

13:46 It's not perfect yet. We admit. We're really working towards improving that messaging so that people really understand where where we fit. In terms of the overall economics for for MSR, what's happened during sort of the start of 2020 is that, obviously, you look on the graph at the top, there's a crash in prices as COVID hit. That really hit oil demand, especially in transportation sector. And that's slowly, slowly creeping back up. Obviously, COVID has been here for longer than anyone would have possibly thought of. It It doesn't doesn't seem seem to to wanna wanna go go away away yet either. But that's really that that has hit transportation fuel demand and and spreads.

14:33 And we'll come on to what that really means for QUADRISE as we as we've gone through this quite unprecedented period of time for oil. But it's also hit biofuel prices as well. And it's important to stress that the biofuel prices, they dipped a little bit, but then they've got they've basically increased in quite dramatically As demand has recovered, the biofuel supply hasn't quite kept up. So the cost of biofuels today, in many cases, sort of three to five times more than they were if you look twelve months ago. Glycerin is a product that we use in our particular fuel, which is a byproduct of biodiesel. So essentially, the glycerin price has increased by a similar margin.

15:21 And again, we can look at the rep what that means for the relative economics of bio MSAR compared to other biofuel blends on the next slide. So in terms of MSAR and bio MSAR, the the savings are still significant. MSAR has kept a a very very good good competitive edge even during a period of very challenging demand. So the economics of MSAL have been maintained around 30% savings overall, which is then split between the refinery and QADRISE on this example, which is using the Mediterranean oil prices. In a similar way, BioEmSAR has kept a pretty good saving over equivalent biofuel blends.

16:06 For the same amount of equivalent c o two in the saving in the fuel, the the alternative of blending, say, heavy fuel oil with an HVO product, first generation of HVO, basically, bioemstar has been has been very competitive. There are there's a slight difference in timing between glycerin prices, and they lag slightly the biodiesel price. So sometimes there's a period where the savings are not as high as they would be normally. But essentially, what we've seen with Bioemstar is around a 20% saving compared to equivalent biofuel prices. And that percentage actually is a a dollop dollar per tonne number is quite significant. The cost of the bioemps or the biofuel blends are much more expensive.

16:54 And it's important to stress that that 19% number presented there doesn't take into account any efficiency benefits, which we've now seen through testing. So actually, the savings with BioEms are, we believe, are even higher than the 19% presented by the order of maybe 5%. But coming back to MSAAR, we still believe that MSAAR has a a real key role to play, you know, in in decarbonizing, especially. I think as a as a company, we we haven't we taken advantage as much as we could have done in terms of this efficiency saving. And this is something that now we're really improving the message to try and get people to understand that by switching from conventional fuels to MSR on a on a in a diesel engine, you're gonna get some pretty significant savings in CO2.

17:48 Around 5%, up to 5% on a four stroke engine, but and we've seen even nine up to 9% on a two stroke engine in the test that we did on the on the flex parts of the flex engine. So that's that has that reads immediately across in terms of c o two savings on a complete cycle basis. So well to wake is all the way from where how, you know, the fuel is extracted from all the way through to the actual generation of power on the vessel. So in the same way, used to be called cradle to grave. So people are looking on a full cycle basis, and that's extremely important when you're evaluating all of these fuel solutions to look at the complete cycle, not just how much carbon is in the fuel. Obviously, there's a there are there are benefits in terms of smoke and NOx reductions, which we've we've presented before.

18:37 But really really, c o two, especially greenhouse gases, are really coming to a fore. And in terms of BioMSA, I think that's been a real we we launched it less than twelve months ago. It's been a real success story for the company in terms of where we've got to now. The testing that we've done both at AquaFuel earlier in the year and then subsequently with Vartsila on the Vartsila engine, sorry, at VTT have gone exceedingly well. We've demonstrated higher efficiency. The fuel has operated with a much higher efficiency. The Aqua fuel testing has been completed. The second round of Aqua fuel testing has been completed, but they're just processing the results. We've got half the results through. We're just waiting for some final results in terms of the efficiency numbers and the emissions data before we can share that on on the website. But we look forward to to sharing that with you once once ready to do so.

19:34 But what we've seen is that, you know, the BioEmSAR product is working exceedingly well. And now what we're looking to try and do is to then ramp that up to commercial tests of this particular fuel on a range of different applications during 2022.

19:54 And that really drives us towards looking at various different opportunities, including projects where we we may be able to get involved with hybrid generation. We require, obviously, reasonable quantities of of glycerin. So we're speaking with crude glycerin suppliers. We've we've been gone out to tender of quotation for companies that can supply systems that can actually refine crude glycerin to to turn it into fuel glycerin. So we know how much it costs to actually refine the glycerin as well if we want to get into that ourselves. We've also spoken with toll processes of glycerin as well. So we have have that that option potentially to to support the the business requirements. So so, you know, glycerin is something that we're we're looking at. We're also looking at you know, we we are aware of the the current production of glycerin worldwide is limited.

20:46 So we're also looking into the the production of glycerin from other means, including production from yeast and also the production from algae with the University of Greenwich with the the study that's ongoing at the moment. And then as mentioned before, we are looking at future fuels as well. So we're looking at potentially blending in various different fuels. We mentioned in the past, we've mentioned pyrolysis oils. We've mentioned lignins. That work's ongoing. We're also looking at potentially blending in methanol, butanol, some other products as well. So there are some means of bringing some of these other green products into an emulsion space as well. And, really, we we think we have a competitive edge because we have a system where where you can blend fuels that are water based and fuels that are oil based.

21:32 They can come together in our system, and we can produce an emulsion of the two things, which is fairly unique. Most companies are are looking at oil based solutions

21:44 solutions whether you can only use a 100% of that particular green fuel. So that's work ongoing. It's not gonna it's not gonna it it takes time to generate this data. Obviously, we're pulling together information also for the patent as well. So, you know, that work that work will be ongoing during 2022.

22:03 So in terms of MFC, obviously, a very large shipping company, soon to be the largest, very strong on biofuels. I think their latest sustainability sustainability report, they mentioned 850,000 tonnes is of biofuel blend is consumed. They've been using certain components up to 47%. And the decision with MSC was taken during to really accelerate bio vessel testing. And why why was that? Why why did we take that decision? Well, that's to really try and secure the resources of the OEMs. The OEMs, you know, the big engine manufacturers are only focusing on their efforts on activities that are looking at future fuels sustainability.

22:51 They won't look at they won't really support anything else, frankly. So future fuels is all of that. That's that's where the space phrase comes in. Future fuels is dominating the landscape. It's dominating the limited resources of the OEMs. The OEMs themselves had a a period where they know, there was a crash in their their demand for engines. Although people stopped buying vessels, frankly, as COVID hit. So they had to lay off a lot of people. So their resources are limited, and then they've been brought they're now having to test a range of different range of different fuels as well. So we are working really hard with with MSC who are extremely supportive in trying to drive the the OEMs to test the next in the next stage of testing with with the two stroke data oh, sorry, the with the two stroke engines.

23:40 And that really required the four stroke data to be assimilated in the right way. Took a little bit of time to do that. But now we have that data that's been assimilated. It's being discussed with the OEMs, and we're trying to get some test slots at the moment on the two stroke engines. And MSC are really backing this particular project because they see it as a great transition option. They're already backing biofuels anyway, and they can see some of the efficiency benefits that we're seeing. And they'd like to get the data on the two stroke engine to do that. So but then, you know, we we we haven't got that slow slots yet, so that really determines the timelines in there in terms of the project. To put that into some context, you know, if you look at a large container vessel, you know, you've seen the the example on the bottom right that we've we've presented before.

24:33 For a 25,000 ton sorry. For a large container ship that consumes about 25,000 tons of bunker fuel today, you know, that emits quite a large amount of CO2. MSA offers, on its own, offers, if you look at the 5% number, that's similar to buying a a new build ship.

24:53 You know, some people are trying to get that 5% by having to invest in large amounts to build a new engine on. We really believe that, you know, with MSA, you can save 4,000 a year just by switching to to MSAR, and we've got the data to support that from the prior tests that we did. Obviously, things like LNG are vastly more expensive, and they they do save us a small amount, but it's only about 14% of CO2 savings. And if there's any methane slip, obviously, any any of those benefits are pretty much negated because methane is much more much worse in terms of global warming than c o two, as you've read recently in terms of COP twenty six and the global methane pledge. That's that's the reason why it's a it's a big it's a big contributor to global warming.

25:41 And with bioemsoir, you know, and other biofuel blends, frankly, there's the the ability ability to to reduce c o two today by by more than 25%, which is which is extremely significant. However, there are also alternatives that the industry are focused on and well publicizing. It's dominating the headlines, frankly. A lot of it is debatable whether it's gonna be fully achievable or not. And it really requires a paradigm shift in renewable energy, which is actually quite staggering. It's unbelievable how much more renewable energy is required to support some of these green fuel endeavors. We've looked at some of these numbers already. So if you look at they they define these these fuels, the way they're manufactured as as gray, blue, and green.

26:33 Gray is how things are done today. Blue is if you make manufacture the fuel with with with natural gas, and you then capture the carbon emissions with via CCS, carbon capture and storage. And green is if you actually make it with renewable energy. So you can see on the right that the the the largest saving is if you make if you make the fuel with renewable energy. That's where you get the largest reduction in c o two. That itself requires a huge amount of of renewable energy. So for each container ship, you need 50 megawatts of power. Now that in terms of a wind farm is significant because that 50 megawatts, if you build a wind farm, you actually need four times that amount. So you need actually 200 megawatts of power. Okay? So that's 70 to 80 turbines, a big area to do it. That's for one container ship.

27:28 If you do the same thing with solar panels, you need a huge amount of solar panels. It's the the number is is quite staggering just for that 50 megawatts. Because a solar panel, you put it in, 50 megawatts, you need 500 megawatts of solar panels because they only operate for 10% of the time. So some of these quantums are quite amazing. And and when, I guess, there are certain very large shipping companies that are bringing in, you know, meth green methanol powered ships, suddenly they're having to they require the the same amount of renewable energy as the whole of Denmark produces today. It's then that's just for eight ships. So we really believe that, yes, there's lots of impetus around the green revolution. We really believe that that's that is the right way to go, but it's gonna take a long time to do that. And in the meantime, we should really focus in the transition options that are available today to make a real difference to the planet. And that's the message that we truly believe in in in QUADRISE.

28:31 Coming on to our project in Utah. We've given, I guess, fairly recent updates in terms of of of where we are. And and, frankly, where we are today is we are looking to get customers now for the oil that we expect to be coming out of the ground in Utah in 2022. The timelines are still to be determined. Tomco has obviously raised has announced that they've raised 10% to take some of the ownership of that particular facility and start drilling exploratory wells there. And we're speaking with others in the region as well who are looking to raise finance and start drilling wells within in Utah. And the key thing for us, frankly, is making sure that the economics of MSR and bio MSR manufacture support those those projects such they get a higher margin for the Utah oil than they would do with basically selling it to a refinery or selling it to other industries like the asphalt industry.

29:24 So really the key thing for us is is to secure now the sales for that those particular products and and finalize the economics of each of those particular sales routes, which is something we're working on at the moment with the the main players there. And really, the outlets for that are a range of different options. I would say that stationary power generation is focusing on exports. Marine is focusing quite a lot on exports as well, but there are some carbon capture and storage opportunities as well and also the potential retrofit of coal fired power plants who are under a amount of EPA pressure now under the democratic government.

30:04 In terms of Morocco, Morocco is a project where we really expected to be well underway here. I'm quite disappointed Bernard is actually in the room because he should be out there at the moment completing the trial. But what happened what's happened with Morocco is that we've shipped them we shipped our equipment out following the last update. We then asked the client, you know, the VP of the of the client to provide the go ahead to manufacture the fuel, and then we heard nothing from the client. So we've been chasing this particular VP, and then there's been a management reorganization. So the VP left. A new VP came on stream. He's had to be brought up to speed in terms of, you know, the project and everything else.

30:51 And we are waiting to hear on a pretty much a daily basis the go ahead to actually start the fuel manufacture, which is delaying us. But we don't really wanna manufacture the fuel if this particular individual is gonna change his mind for some reason. We also have a contract that we wish to renew and extend for another twelve months, which incorporates some of the other opportunities as well, including potentially bio M cell testing. So we're looking to try and push that particular extension through as well. So at the moment, I'd love to provide you with good news about Morocco in terms of the trials actually happening. But at the moment, we are in this impulse stage where we have new management coming in. And our our agent out there is very busy at the moment trying to get that trying to secure that agreement.

31:41 So I like you, I've I've I'm extremely frustrating. I'm frustrated that this trial is not such that we have this project ongoing, but it's it's work in progress. Elsewhere, we are making very good process progress, rather. So in Panama, we're making some good progress with a with a with a power generator there who operates Voxeler engines, and we're looking to to secure an agreement for a trial, of MSR and potentially bio MSR at that particular facility. In Mexico, we have again, we've made good progress. We've had a lot of data now shared with the national oil company there. We we process that data and run some preliminary economics. We're just making sure that we're using we've got their internal price deck. We've got we've been sent half of it, but we need the other half to finalize the economics. But on the face of it, at least, economics of MSR manufacturing in Mexico are extremely interesting. And we see a couple of very good opportunities for refinery fueling. Refueling, it just should be the most simple option if you've got dealing with one particular customer.

32:56 And that's something that, you know, we could look at doing ourselves and together with our partner, Redline. So we're making some good progress there. And I'll be delighted to to to give you some updates of that once we once we have a program in place. Ecuador, nothing too much to report there. We are working with a new management in Ecuador, Petro Ecuador, in terms of that particular project. And FreePoint is still working there as well in terms of fuel offtake. And then in Central America, you know, there are a number of activities ongoing with our partners there, eNPC, who we've been working with with a number for a number of years. So they're they're making some good progress where there's there's been a I guess, in Central America, there's been an interesting switch in interest. People have been obviously a little bit obsessed and focused with LNG.

33:45 But given the spike in LNG prices, now people are are warming up to other opportunities around the fuel oil generation option as well. And then in Saudi Arabia, that's really its head again. We have meetings arranged or meeting arranged very soon with the minister of energy, one of the departments there looking at potentially sustainable options for oil going forward.

34:13 So in terms of resources, obviously, people are fairly very well aware of of the the changes in management. We have a recruitment process which is completed for the COO. He's due to formally start in January. Informally, he he'll be coming in next month to start initiation initiation process. And we look forward to sharing his details in due course. Contractually, we can't share that yet yet with you. It's sensitive to him, but as soon as we know since we are able to, we'll we'll share the details of the individual. He's a a very good a very good candidate. Mike sadly stands down today, and I'm sure we'll all have a chance to to wish our thanks to him. The process for his search is progressing well.

35:02 We've recently received a long list of of candidates that we're sifting through at the moment to to bring that through to the interview process. So that's progressing well. Well. Obviously, Laurie will very, very kindly has agreed to stand in as interim chairman, which is which we're delighted about given his experience with the company. And, you know, the transition plan with Mike anyway had been in place. So, obviously, his departure would be sorely missed. But we had a transition plan in place anyway where myself and David and others were taking in taking up quite a lot of those responsibilities. So

35:36 it should be fairly seamless. And the and the new team are really you know, we've got a good team of expert consultants, some of whom you probably see on the website, some of whom you don't, and we probably need to, I guess, improve our to to let you know who we're working with. We've some really good people working with us as consultants as well who are really, you know, providing some great input to the to the team as well. In terms of finances, obviously, we had you've we had £7,000,000 worth of cash. Obviously, we're looking to try and preserve that as much as we can while we, you know, we see these these these unforeseen delays. But we still see we're still viewing the in terms of our projections that we can get into revenue generation mode, second half of the year with positive cash flows during the the early part of twenty twenty three is the plan.

36:29 So as long as things progress as we would expect, and obviously, we're look you know, we're looking to try and accelerate some of the the delays that we've experienced now, we're looking to try and change that back to a positive progress. So as long as that maintains, we shouldn't need to go for extra funding. But, obviously, if there are delays, then we'll have to relook at that at some stage. Yeah, it's it's it's key to say that, you know, we we and we know this already, but it doesn't take much for us one it really requires one project with two MMUs to to make us cash generative. So we can know, one even one project would make a significant change dent in our revenue revenue generation. This is really a summary, you know, of where we are. You know, we really believe in the products that we've got. We really think that they've got a a great future in terms of the transition.

37:28 We've got some some very interesting interesting projects, some of which are quite challenging from a time timing perspective recently, but others are appearing which are, you know, could could actually accelerate relatively quickly. And we have some some great opportunities in terms of some of the new decarbonization solutions as in terms, you know, in terms of hybrid power generation as well. And we're fully funded. You know, we believe that the funding we we got input we took we we got in at the beginning of the year will take us through to the commercialization phase. So I think think finishing on that, then we can move straight into into q and a, if that's okay. And what I'll do in terms of the q and a for the benefit of the people online, there are some questions, so I can answer some of those. But I think it's fair to the people in the room to ask their questions first, and I'll repeat the question for the benefit of the people online and then provide our answers.

38:29 Yeah. And I I think just as I Sorry, Mike. You're working on my Yeah. As if I can just sort of very briefly, I think because probably most of the questions are gonna be about our projects and things like that, it really makes sense for Jason to be here and and answer answer those those directly. If there are any that are relevant for me to answer, I'll come up. But as this is being managed in a hybrid meeting, it really makes sense for Jason to stay here and direct the questions appropriately. Thank you very much. Okay. Any questions? Go on. Ian, you were here first today, sir. Yeah. Thank you, Jason. Ian James, shareholder. The KSA meeting, how did that come about? Is it something that they requested, or is it because we've been badgering them?

39:21 I've been in contact sorry. The question was the KSA meeting. How did that come about? Was it down to them contacting us or us badgering them? It was us well, myself, I've been in contact with the people from the energy ministry on a regular basis. And one of the the the my contacts there had moved into a particular role. I was looking basically driving their their oil sustainability program. So I used the opportunity during his move to reintroduce us, reintroduce, you know, what BioEmsar especially could offer alongside Emsar. And that that then related that that basically translated into the meeting that we now have planned next month.

40:08 Sorry. This gentleman was next. The mSAR bio mSAR production unit at QFR. Many times a day will it produce? And when will it be operation? So the the bio MSAR production sorry. The question was the bio MSAR production unit, the the new one at QRF or how much will it produce? So, basically, we have we have a a range range of of production units that we can use for both MSAR and bio MSAR. The the same unit is used for for both products. So we have a a lab unit that that works at that provides half a ton an hour. We have a pilot unit that that can produce up to four tons an hour that we've just recently purchased.

40:57 In fact, we have two lab units. We have two lab mills at 500 sorry, half half a ton an hour. We have one new pilot unit that runs at four tons an hour. And then we have two commercial units that we can produce up to 40 tons an hour of either product. And are they all operational? No. They're all operational. Yes. They all are ready to run. Yep. So with that Sorry. The sorry. The pilot unit is, yeah, is sitting in Denmark at the moment. So yeah. So it's ready to we're ready to receive it. We're just waiting for some electronics to to formally get that from the supplier. But it that does actually run today. So that's the 40 ton That's the four ton in our unit. Four ton. But everything else is operational. Yeah.

41:43 So could we have produced the Morocco and SAAR of QRO? The the problem is with the Morocco quantities, it's about 60 tons. So so the question was, could we have produced the Morocco quantity at QRF? The Morocco Morocco requirement is about 60 tons, and that's really beyond where what what we would like to produce at QRF unless we had to. So the the decision has been made to make it at another facility. So all of our equipment is there, ready to go. We're just awaiting for the instruction to actually proceed. And we'll use our pilot unit to do that, the full ton of our unit. But we need there's no we're not gonna make the fuel if the client is not ready to receive it. That's that doesn't make sense.

42:34 So 60 tons, two tanker loads? Yeah. Well, three it's basically three isotanks. Sorry? 60 tons is is three isotanks. Sorry. We yeah. Yeah. And firstly to Mike, Mike, I think it goes back to AGM. Was memorable for so many reasons, and you might have had a few memorable memorable memories since then. I think every shareholder would like to join with me in wishing you the best for your personal and professional future. So thank you. Thank you very much. Jason, the question. You talked about Morocco. I'm sure we all understand that organizational uncertainty can be a bit of a roadblock.

43:23 From your comments, do you believe this is still a when it will happen, or has it with the new VP that I think you mentioned become a if it will happen? No. We still believe it's a it's a when it will happen. It's just been a frustrating time when this new person comes on stream. And, you know, he's been holding the pen on not just not just not just our project, to be fair. There are a number of other projects with other suppliers that are being put on hold whilst this happens. So we're not the only company that's been affected by this recent reorganization. Sorry, Bob. Yes. Yeah. Bob Sharp, exceedingly long term. The two full size units you mentioned, is one of those the SEPS units?

44:14 The the sorry. The question for Bob was the two EMS units, the the large ones, is one of those the SEPS unit? Yes. It's the answer. So it's no longer in Spain? It's still in Spain in storage. Yeah. Oh, thank you. Yep. Yeah. That unit's still in Spain. Answer the third question, but where could they actually be making a? Yeah. Hopefully, a location soon. Yes. Sorry. Mark, I'm a retail shareholder. Do I understand the RNS from this morning correctly that basically MSC did not accept that the four stroke results that you got from VTT was sufficiently representative for their two stroke engines, and hence, they want additional testing to validate that before they go ahead.

45:02 So, yeah, the question from Mark was, did MSC not accept that the four stroke test was sufficient to immediately translate to a vessel trial on a two stroke engine? Is that correct? Yep. Yeah. Yeah. Frankly, no bench sorry, no owner would accept those results. Would they want to see those at the actual performance on a on a on a on a a two stroke engine, which is the two stroke engine's performance is quite different to the two to a four stroke engine. And there are components which are quite different in terms of the fuel injection systems as well. So it's we weren't expecting we weren't expecting an immediate go ahead on a two stroke engine per se. But, yeah, what we'd hoped is it would accelerate you know, the the testing program with the OEMs on the two stroke, and that's been, at the moment, a bit elusive. So we we, together with the MSC, have been really trying to drive the next step, which is the two stroke stationary testing on the on the engines, which are the precursor to the to the vessel trial in this which is the the same program as we did with Maersk.

46:11 If I can sneak another question in. I've been listening to a few of the talks because they've they've appointed some people who are now in control of future fuels and green fuels and so on. I noticed the relating question. She's mentioned several times, but we have experience with emulsion fuel as well. Not gone into any further details, but I don't know any other emulsion fuel has tried. But so what do you feel like the relationship with is like? Do you think there's something there to be half? So the the yeah. The question for Mark was that the some some of the presentations that he that he's been watching with MERSC, they've mentioned the emulsion fuels that they had experience.

46:58 And, you know, and and is there an opportunity for QUADRISE? Is that is that fair to say? Or yeah. I mean, we we are speaking with those individuals who are presenting. I think Maria Strandsen, she presented after after me. So we were the we were the meet between the meet and the sandwich between MSC and Maersk at the the recent GreenTech shipping presentation, which is which is which is very good. Yeah. We we are in contact with with Maersk still in that regard. They at the moment, their focus, frankly, is on on methanol and everything related to methanol, but they are willing and open to discuss other opportunities too. So we've that discussions have not stopped.

47:47 Yes. Jason, following on from that, first, because you rightly say talking about methanol testing, other people talking ammonia testing. I haven't heard anywhere, any any of of these these companies talking about loan ups. So why is it that QFI seem to be the only people who have to go through this loan up process? Question for me was that he's been hearing about other companies other companies such as MERS having to being testing methanol, testing ammonia, but no mention of low nose. Why are QUADRISE having to be drawn through the lengthy that low note process? Is that fair to say?

48:34 They are having to go through the low note process. So it is a reality. So all of the the new technologies that are brought in and even the the most recent announcement, I guess, in terms of the energy conversion with Varsil. I mean, all of those all of those new fuels have to go through the same process of low note testing. The reason that's you know, I think there was a a question that got picked up or or picked up on from somewhere, you know, why are companies like Good Fuels may able to go ahead with particular testing and why QUADRISE struggling? The difference is that good fuels are blending in a biofuel component, which is very, very similar to conventional diesel and already approved by the engine manufacturer. The reason that QUADRISE is different is we're introducing an oil and mortar emulsion to an engine, and there's just not the experience there on the two strokes anyway yet.

49:29 So that that's really why QUADRISE are having to go through that LONA process. But it it is a barrier for us, which is extremely irksome given we know the fuel does work extremely well on particular engines. So we are looking at other ways as well to see whether we can find an alternative means of trying to either fast track or circumvent the process so we can actually get up and running. But good question. Yes. Jason, just turning you that long term shareholder. Listen. We have the trial with MERS, which got interrupted. If is there any way we restart it again? We have to start back in square one with 4,000 mile per hour again.

50:19 Could we explain what we'd used to offset? Is it feasible or not? The question from Tony was we had just under two thousand hours. I think it was about fourteen hundred hours experience with with Maersk. Can we continue from the fourteen hundred hours to the four thousand hours mark, or do we have to start from scratch? The reality is to get the the letter of no objection, you probably need to start from from base zero again, really just because they they do wear measurements from the start. So they want to look at, you know, what the incremental wear is. So that the I guess the only thing is that that particular fourteen hundred hours with MERS took an exceedingly exceedingly long time because that vessel was not always operating on on MSAL. So it took a lot longer than the four thousand hours really should do.

51:11 The hopefully, the the testing that we're doing, that we plan to do with MSC will be on routes where the vessel is gonna be utilizing MSAL or or bio MSAR much more frequently so that those at least those four thousand hours will be done in a shorter period of time, ideally six months, but or around that mark, six to eight months. Bob, sorry. To you. That brought the memory back to me. Am I correct in thinking that Maersk actually ran in one cylinder or two cylinders of the engine? So the question from Bob was Bob Sharp was, did Maersk run the fuel on one or two cylinders? During the proof of concept testing on the man engine, that did that was run on one cylinder, basically. So you can on on the managing, you can do you can separate the cylinders out and and run on one particular cylinder.

52:06 You won't necessarily get a low note for that particular you you'll get a test done on one cylinder, but for a low, no, you need other you know, you you won't necessarily get emissions data from one cylinder because all the emissions get blended into one. So you ideally, you wanna you want to get data for efficiency, which is extremely important for c o two, especially, and you want data for the other emissions for NOx, etcetera. You won't you won't get that from a single cylinder test. You will get some information from it so it's not to be ruled out. So does that mean the MSC ships will run on all cylinders in 12 or whatever it is they've built on this? Yeah. So if if the if if the vessel's gonna run and it's gonna run to to to facilitate a loaner, it'll run on all the the whole engine. Good.

52:54 Thanks. Yep. Mike, emotion emulsion fuels are not mentioned in general press articles. How QUADRISE is gonna change that? I think I mentioned during the presentation, we're we're really looking to, I guess, expand expand as much as we can our our, I guess, our PR PR activities to try and make people understand slightly better what emotions really are. Obviously, in the context of trying to keep the simp the message quite simple as well. You know, I guess we can people like myself, especially, can get quite technical too quickly, and it's it's it's possible to lose people. So we are looking to improve all all areas in terms of getting the message across in terms of what emotions really are. The key thing is actually to get the fuel commercially tested and actually in use so people can see it's it's actually a product that they can buy today, and that's really the our main focus.

53:54 And, also, your videos and presentations seem to miss out the most obvious step. This is a lump of bitumen, or this is a bucket of thick oils. This is what we do with it, and this is MSR at the back. It take ten seconds at the beginning of any presentation. And the presentation that was given in The Americas, it seems to be the very first question was, how do you make? Yeah. The the comment from the gentleman was that, basically, the the presentations that we that we do could be very simply that we could very simply explain the production process. So, yeah, we we are we've gone through several iterations of of that particular you know, of the of how we introduce the fuel. And I wouldn't say we we've got it perfect yet. So we'll take your we'll take your comments on board, and we'll by this time next year, hopefully, we've got a better means of explaining of what we do.

54:53 But I think the the message is also that's quite important, frankly, is that, you know, is the carbon reduction, the energy transition message as well. That's equally as important as how you make the fuel because the and that's really the why. You know, we're doing this because it's lower cost, lower emissions, means of transition to, you know, towards net zero. And that's really, you know, the key parts of the message, and it can be done very quickly without massive infrastructure changes. Mhmm. That's extremely important. So No. That's good. Following on from that question, there's an observation here, is I remember the AGM going back, I don't know, six, seven years ago, and the floor came up, and we were talking about them. And it was all about why did we push the green credentials?

55:40 How could it? But at the time, all is going, no. We don't think we think we'll get too much back press on it. So getting on from how we should present things. I don't know if we missed some opportunities over the years. I have been a long term shareholder for, like, ten years. Still out of investing. So I just think it's so important to get this message out. Yeah. Especially with the new buyer as well. Yeah. So I I and it's a very good observation. Think so the question from the from from mister Skinner was, you know, been invested for a number of years. Remember, sort of six, seven years ago. Why don't we push more the environmental message where, you know, we're maybe obsessed before about the economic message and, you know, the environmental bit took a backstop. I think I think what's changed in the last couple of years is that there's just been this paradigm shift in terms of the planet's extremely important now.

56:36 Sustainability is key. You've got people, you know, people in really conservative industries like marine the marine sector, for instance, who didn't do anything, frankly. They suddenly have to shake themselves up, and they're running they're thinking about running on methanol and and ammonia or hydrogen. You know, these guys have their world's turned on its head. So I think, yeah, our message, we probably we definitely, for sure, should have got the efficiency message out better, you know, one or two years ago. I'll take that on the chin because, you know, probably that that's me trying to get the message right as well and others in the team, frankly. But I I think, you know, the world has I think the difference now six years ago and and today is that six years ago, people were obsessed with the economics, and it it was great. You know?

57:28 It's great that it's got environmental bit to it, but that's sort of icing on the top icing on top of the cake. Now it's it's gone full circle, and the environment the environmental bit's more important than the economic savings. So if you're talking to a refinery, you know, that, frankly, they don't really it's not that I don't care, but, you know, it's the environmental message first and the economic message that supports it second. And that's that has really really changed in the last last few years. Sorry. Sorry. It's only Jason, two questions, please. When we have the deal with Maersk, I think they was hoping to get a commission per sale. If they come in at the last minute, see we did the trial, the MSC, and it's successful.

58:16 If personally jump back on the bandwagon, would they still be entitled to some monies even though they've done nothing really to promote outcomes? That was further. The second one is, has been in the updates on Japan since it was dead or whether it's still limited on. Yeah. So so two questions, I guess, from Tony, were first one was, what do we know? Is the the Merce royalty agreement still valid? The second question was we haven't heard much from Japan, what's happening in regards to the JGC relationship. So in terms of the royalty agreement, you know, the the advice that we that we've been given is that there's no royalty due.

59:02 And, frankly, you know, BioEmstar is a different product as well. So, you know, we we don't believe that that royalty agreement is valid because they haven't supported the the commercialization of EMSAURA, as they said. Having said that, we're not gonna tweak the tail of potentially a future customer as well. So frankly, we've left that discussion for another day, frankly. But the advice that we have is that we have a case to say that that royalty is not due. Secondly, in terms of Japan, we do have a reasonably regular dialogue with JGC in Japan. That hasn't really yielded anything yet. We have a CHP project that we looked at together with one of the big OEMs when we submitted the dates, that's sort of gone to a bit of a black hole during the COVID period.

59:55 But yes, we're still pushing that. And obviously, they're looking at other opportunities now that LNG has gotten so expensive as well. They're suddenly squirreting to run on fuel and other things. So, yeah, that's the relationship that, unfortunately, from afar, it's sometimes a little bit harder to manage. But, yeah, something we need to get back to for sure. Yes. So I think it's fair to say one of the key problems that have had in the last couple of years is getting the operational team on-site to actually run trials. So an obvious solution to that as someone who's not informed on the details is that more local engineering capacity would be useful because we keep the guys keep getting locked out, basically.

1:00:43 So how are you gonna what's your thinking going forwards on that in terms of local engineering capacity to run trials, for example, or to build infrastructure, that kind of thing? Yeah. So we do sorry. The yeah. The the comment was made in terms of or the question was, can we use local engineering companies to facilitate the trials in the event that QUADRISE are not available or are not able to actually visit the site? We so we do use third party engineering companies today. And in fact, within CEPSA, we we utilize we we work with our equipment supplier and their and their people to actually run, you know, run the unit together with us.

1:01:28 So where there's where there's additional resources used, then we will use, you know, the we will basically use resources from E and H who can actually operate those units anyway. What we not able we're not able to do is completely outsource that during you know, for a particular trial for the first trial with a new customer. It's not it's not it's just not possible to to do that remotely when you're having to, you know, you're having to problem solve as you go along, make sure the client's happy with how things are going. You you just don't have that visibility. You know, you're looking if you were at a boiler, for instance, you're looking through a sight glass to see how the flame looks. You can't just there's there's things that you just can't do remotely. You we have to have our experts on-site from QUADRISE. We have got a great team of people.

1:02:21 You know, they're just those people just don't exist elsewhere. They have that have the experience that we have, and it's very hard to do it remotely, frankly. I wish we could, but there's there's certain things where we we really have to be on-site. Could that involve establishing local teams then at some point? So for example, a QUADRISE PORTCO team or a QUADRISE PORTCO? Yeah. So the yeah. That's a good point. Could that could that involve establishing local teams? Absolutely. So, yeah, as as these trials develop and we start to get into commercial production, then that definitely is something that we we outsource we would outsource to a local team. We wouldn't want the QUADRISE people there tied up in Morocco if you've got something going on in Mexico, for instance, or somewhere else. Yes, sir. Sorry. Oh, sorry. Yeah. I'm close to each other. Hi, Jason. Nick Kaye, long time shareholder.

1:03:09 We've been really targeting major consumers, product consumers. Is there a possibility of getting something started like running your Perkins generator where somebody can actually run some piece of machinery out there by using product from QRM? Yeah. Good. Very good question. So the question was, obviously, you know, we're chasing some very large customers. Is there a possibility to do something a little bit smaller where we have more control over our own destiny, absolutely, that's something that we are looking at as well in parallel. You know, we would really like to have something up and running so that people can come and kick the tires, see how a generator is operating, etcetera. So yes, that is certainly something that we're looking at in parallel to the to the the key projects that we have as well. But even the key projects can offer that opportunity as well, to to be frank, even at a small scale.

1:04:08 So, you know, we we are certainly champion the bit to have something up and running again. Good question. Sorry. This gentleman's next. Do we see has that gone? Thanks, Jason. You helpfully included a slide around the cash runway for the business, and that was reassuring in a number of respects. So thinking forward in a year, so we're all sitting in another AGM. What would you say are the vital few milestones that have to be passed so so that we are talking about the transition from an r and d company to a commercial revenues company and not talking about more delays and more hopefuls? Yeah. A good a good question in terms of in a year's time, how can we transform the company from a company that's been in r and d mode and trial mode for a number of years to a company that's revenue generative. We we basically have to convert one of these projects or one of the other projects that, you know, we're working on as well from a commercial trials trial phase to commercial revenue phase during the next twelve months to be revenue generative. We really wanna be I wanna really wanna be standing here in twelve months' time saying that we are we are now generating revenue.

1:05:25 So just to check my understanding, you're saying that any one of those three, which is MSC, Utah, Morocco, would transform us to close enough mutual or free cash flow? Potentially, yeah. It depends on the scale, obviously, of each of the big opportunities. But even being revenue generation, though, transforms how the company is viewed externally, you know, and demonstrates to people that this is we're serious. Right? We've got a commercial contract. We're now running. It it really changes how, you know, everything for the company. So that's really the focus. Sorry. I've got I just go. Please. If I could just come back to MSC for a moment, please, Jason. You've explained, I think, excuse me, that one of the issues is limited capacity in the OEMs to test two stroke engines.

1:06:23 And and so as the question I got is, no sorry. MSC is obviously a huge client of these OEMs. OEMs. And if they were really jumping up and down and said you know, saying, you know, we want this tested now, then the OEMs would probably do it for them. So I suppose the question I've got is, you know, how important is BioMSA potentially to MSC? The good question for me at the front was, you know, in terms of in terms of the two stroke testing, why is you know, if MSC were serious, they'd be jumping up and down and forcing the OEMs to proceed with testing. I can assure you a 100% that MSC are doing exactly that.

1:07:15 They are just, unfortunately, meeting resistance with the OEMs who are not COVID. I could but I can show I would love to share with you the contents of some of the emails that, you know, are pretty forceful in trying to make sure the OEMs take Bio Mcell seriously and enforce the importance that MSC have in terms of the, you know, the BioMSALP project. I can't obviously do that for you, but I can say that they are jumping up and down. But at the moment, the OEMs say, I'm sorry. We can't do it. And there's a bit of a discussion ongoing. But they are I mean, they they really are backing our corner. So it it's it's quite reassuring for me too, frankly.

1:08:04 Because, you know, you do have those concerns that there are other things going on, but but I can assure you that that they are taking it seriously. Sorry. There was another question from Tony. Yes. Jason, just MSC. If they say you get us to go back tomorrow for trial, how long would it take us to get the infrastructure on the ship prepared to commence, or is it feasible for the ship to be still working as doorman and have a crew onboard adapting the boat. So from most from MSC point of view, partnership without the commission, it's it's still feasible to make it work while the infrastructure's built on board then commencing. Yes. So the question for Tony was, from the go ahead, were MSC to give the go ahead for, let's say, a vessel trial, how long would it take to happen? And would the vessel be out required to be out of service for any length of time while it's being prepared? The answer is most likely, it'll take six to eight months to be ready for the vessel trial, both from the production perspective, but actually on the vessel itself.

1:09:12 One unpleasant outcome of the whole COVID thing or COVID event is that, you know, supply lines are taking longer. So to get, especially, electronic components for equipment is taking longer than it would do normally. So the the guidelines that we've been given recently are, you know, sort of between six to eight months for delivery of some of those components. So we would we are discussing with some of the suppliers of this equipment, what which lead which long lead items are key and what can we order early so that as soon as we get that go ahead, we can push a button and start by the key equipment early to try and bring that forward as much as possible. To come back to the question about the vessel. The idea would be that the vessel would always be in service, and there would be a crew on board that would then you you drop the fuel booster units in in modules. So they go down the hatches, and then you plumb them in with a with a crew on board, most likely.

1:10:11 So the vessel's not interrupted. Yes. Perfect long term shareholder. Following on the questions about the OEM testing and the POC, do you think the OEM testing will negate the need for proof of concepts onboard ship to go straight to the full engine trial? So, yeah, question from Vic was following on from the question about MSC. With the planned or discussed OEM testing at their station facilities, would that negate the requirement to go to a peer for a proof of concept test prior to a letter of no objection trial? The answer is yes. We believe that the stationary engine test is sufficient, and that could lead straight into the straight to the vessel trials.

1:11:02 So POC would be skipped. Because there were stationary tests on, wasn't there, prior to MERS? There were stationary tests on. Yep. Yep. Yes. The cruise line has seemed to use a lot of electricity. Is this electricity generated on board by Cummins type generators or by type engines? Yeah. Yes. So the question was that in terms of the cruise ship application, are they is electricity made onboard by Cummins engines or Vartsila engines? They tend to be for the bigger cruise ships, which are actually significant consumers of fuel, albeit not during the last couple of years. But normally, they would consume about 50,000 tonnes a year of fuel of each each cruise ship. And they they tend to use the the four stroke engines predominantly. There are some man engines on some of them as well, but varts of their engines are quite are quite used quite a lot in in that application.

1:12:01 So that's definitely an area that we are see, we have the bioMSAL results now from the two strokes sorry, the four stroke testing. We did a VTT. So that's one of the applications we're looking at is the four stroke marine application with other other potential clients. Yes. Sorry. Have has any kind of time line or insight into when you're gonna get access to OEMs for testing been given, or is it still just at the minute you're just gonna have to wait and see, pray, etcetera? Yeah. Is there any I guess the question was, have we had any timelines yet from the OEMs in terms of the engine testing? The answer is is no. That's still in discussion. We still haven't had that discussion those discussions yet between MSC and the OEM.

1:12:48 They're still still being negotiated at the moment. Yes? Adding up the timelines on that. So how long do you how long do you anticipate the o n OEM testing to take and then be analyzed and approved? Following on from that, you've then got six to eight months to get the trial ready for a bio insight, and then six months of testing. That up it's up to at least fourteen months from the start. And that's a long way out from the original time lines. Does that concern you at all? Good question. So the question was adding up the time lines, if you look at the OEM testing, and then if you do that sequentially, the vessel testing, that results in, I guess, an extended period that goes beyond what we've previously said. And and are we, as a company, happy about that? Is that fair?

1:13:43 Concerned. Concerned. My concern. The answer is yes. We're we're extremely concerned. And one of the discussions that we're having MSC is whether we can start the vessel adaptation now so the vessel is actually ready such that when we do the OEM testing, we have the results, and we can go straight to the vessel testing immediately afterwards. So it doesn't have to be a sequential event in our view anyway. We believe that we can start, you know, the vessel prepared such that we do the OEM testing, we have the results, and we go straight to the vessel testing. And that's something we actually we did with Maersk as well. So we it wasn't a sequential process. We could actually do things in means there's no interest in MSA at all. The question was moving on from that, there's actually no interest in MSA. That's that's not the case.

1:14:32 The the but the the key thing for MSC is is to get experience and get the OEMs to support the actual the trial on board. And the OEMs will only support it if it's got a biofuel element to it, which means bio MSC first and MSC for and and MSC subsequently. But I can assure you that MSC, they're very, very interested in, but they just can't convince the OEMs to support something that's a fossil fuel, which is crazy. But But doesn't doesn't the fact that mSAR has already been proven on those engines not mean they could receive an mSAR test to work out the viability of mSAR as a fuel. And then at the point in time that your bio mSAR is available, which apparently looks about fifteen months from now, you could have finished the EMSAU testing and then community testing bio EMSAU.

1:15:24 I mean, it just just seems like it's going nowhere to me. So, again, an observation or, yeah, a concern from the shareholders. Basically, MSAR is fully proven already or has been proven already. Why can't we start with MSAR first? And then BioMSAR could take up to fifteen months. I'd say that BioMSAR wouldn't take up to fifteen months to to commence the trial. You know, we would we would be ready to start serving or start producing BioEmSol in the middle of next year if you were given the go ahead from from MSC. So that's not the case. But you make a very good point about about MSO. You know, one of the to derisk an investment in modifying a vessel would be to pick an MSC vessel that's got a varts of their engine on board, but we've already had to have the experience.

1:16:14 And that way, if there is a delay for MSAR for bio MSAR testing at the OEM facility, we can start with MSAR. And that is a discussion that, you know, that we we are having with with MSC. So I would say that MS MSAR is not dead, and there is an opportunity to keep the progress going with with MSC and and and switch switch it back to to MSAR on the parts of the vessel where we have the experience. Yeah. Mike again. Given the improved lubricosity of is there a sales opportunity to say company, your engines are getting tired. If you use our fuels, your engines will last longer. So a quick sound?

1:17:01 Yes. So the question for Mike was, you know, given the better lubricity of of bio MSAL compared to MSAL, does that enhance our opportunity to convince consumers of sorry, engine owners or vessel owners to switch to BioEmSAR compared to what they're doing today? I think what we're saying about the the enhanced lubricity BioEmSAR that's really compared with our existing product, Emsar. You know, Emsar is water based, so it doesn't have much lubricity, whereas bioemstar is really quite heavily glycerin based. And that's really where the enhanced lubricity comes as compared with Emsar. Compared to compared to conventional fuel oils, I would say that conventional fuel oils, we've got already got a pretty good lubricity if they're if they're clean.

1:17:48 Where an engine's running on diesel, that that sometimes that's where their lubricity is not quite so good. And some of the some of the low sulfur fuels as well, the very low sulfur fuels, they don't have a great lubricity. And that's where potentially BioEmSol would work. But really, the markets for BioEmSol are frankly where where an owner is looking at or using today biofuels or looking at running on biofuels. It's really comparing that biofuel with bio MSOF, and that's where, you know, that's where the argument lies. And they're more likely to make the change because it's got better emissions, better efficiency and a lower cost than they are purely about lubricity. But it's a it's a good it's an interesting point you make. Yes. A question. I'm not sure it's a feature question. Have you it's regarding insurance liability on your fuel. Mhmm. I don't know if you've had any feedback from the insurance because you must be fully insured once you go out. Is an engine blowing up or you get compressed and fuels can devastate an engine?

1:18:50 Yeah. No. We do we do. The question was in terms of insurance, you know, do we have I I guess, you know, is covered if in the event that we there's an unfortunate event on our engine which results in it failing. Yeah. We have we have you know, we we we have covered by Lloyd's by Lloyd's in terms of product liability to cover all the activities that we do. So, yes, we've we've been supportive all the way through. Sometimes we get gets a bit more challenging. Things get a bit more complicated, but but, yeah, it's not not not any easier, but we do have cover. And we have just renewed that, actually, quite recent. Look at David, I think I signed the invoice.

1:19:39 Yes. Sorry. No. No. I think you go on. Just going back to Utah. I know you it was mentioned that you're looking at other opportunities in Utah, but my understanding was that any opportunities in Utah are wrapped up with Bellcore because they have the rights. Is that correct? Or are you able to talk to other parties without Bellcore or Tomco being involved? So the question was in terms of Utah, do we have the ability to speak to other companies in that particular region directly as opposed to speaking to or are we compelled just to work with Valcor and Tomco? I would say that we we that we have no exclusivity with greenfield greenfield, Tomco, or or or Valcor.

1:20:30 However, you know, we've got a very good relationship with with both Valcour and Tomco. And if we have to work with, I guess, reliable reliable counterparties in that particular area, you're you seem to be able to raise money as well, you know, for the developments that they're doing, then then those are the companies that, you know, we prefer to deal with. But that's not that doesn't prevent us from dealing with other people as well. But, yeah, we've got a very good relationship with those guys, and I think we're happy to continue that. Sorry. There was a question. No. You're okay. Whilst we're on the Utah issue, is the product initially going to be used for raising heat, or do we know if EMSAR or BioEMSAR has a use for a specific company or a specific part of engineering?

1:21:22 So, yeah, the question was regards to the Utah project. Will the engine will the fuel itself be used for for heat generation, or will it be utilized for other sales applications? I would say that at the moment, we're looking at both potentially for heat, for steam generation. But that's a little bit more sensitive in terms of some of the permitting. So more likely it would be for for end use in the power generation sector, I would say initially. So that's really the the main sectors that we're focusing on both within US and also externally. And is there a user lined up for use of at the moment? Not yet. No. And that's one of the things that we're we're working on at the moment is to is to try and find an end consumer where, you know, once these wells are up and running, hopefully, next year, we can take some products and actually get it to that particular user, do the trial, demonstrate it works, and then that will lead to a commercial contract.

1:22:18 And could they be a producer for MSC? Could could Utah be a producer for MSC? Yes, ultimately, for a low product. Yep. I just hold on. Oh, I would have come in possibly at the end. Mark, long term shareholder. The sorry. Just I'm gonna see. Worry. Sorry. There you go. I forgot the answer anyway. I had some questions pre submitted questions as well. I I feel I feel like it's it's only fair. The the pre submitted questions we have we have answered as well.

1:23:11 So there there will be those answers. We'll we'll be published online. But we have some some pre submitted questions that it'd be useful to work through. The the first one was, you know, in terms of the renewable the 100% renewable project or product, when would that be released? So in terms of that particular product, that's something that we're we're still working on. What we've with BioEmstar today, what we've demonstrated in the lab is that we can achieve a CO2 reduction just with glycerin of up to about 50%, which is quite considerable already. We are then looking at how do we substitute out the remaining hydrocarbon component to make 100% renewable fuel? And that's where we're starting to look at some of the other components. But I would say it's difficult to give time lines for that. I'd love to give you an update in a year's time and have a product that's going to be fully renewable by then, but it's going to take some time to get these products.

1:24:08 And then some of the renewable components are not you can't just immediately stick them in in the mill. Bernard will probably kill me if if we did. I mean, some of them need to be you know, they're like wood wood chips and some of the other things where you actually need to turn it into something that's really a fuel that you can then utilize as an emulsion. Just using a wood chip on its own is not gonna be too useful. Doesn't mean you add add much bang for your buck. So some of these products require additional treatment. Bit like crude glycerin needs to be turned into a fuel glycerin. You know, you need to treat these products as well to get it into a form where you can then use it for conventional applications. So that that work, yeah, requires a bit of r and d as well to make sure it's fit for purpose.

1:25:01 Can I have another go? Yeah. Go for it, Nick. First and foremost, Jason, I think I'd like to say that I think the majority of shareholders really do appreciate the position in the company, what you're doing to try and get us over the line. And I know that's yeah. Obviously, that's that's tough. As as shareholders, we're fully brought in to the product. We understand that it's game changing product. We understand that it's disruptive. But what what's of concern is that our prospective clients, there just doesn't seem to be the same urgency there in adopting that even though the product can save them many thousands, millions of of of pounds.

1:25:49 I think what is a bigger concern also is the fact that we've just lost two senior executives at the company who have decided to walk away. Clearly, they don't share the same vision that that we've got of what possibilities are for for. And that that's gonna cause disruption to our business clearly as we appoint those new executives. And it's perhaps not a good advertisement for other investors who might want to to join us and attracting investors for the next fundraise. So how how would you respond to that?

1:26:36 Yeah. Quite a long question to try and remember. Yeah. Okay. Because I I don't I don't know why you forgot it. I got there. Right? You did? God. They always thought me there to remember. I mean so a very good question from Vic was, you know, sounds like we got a great sorry. Yeah. There we go. I've started already. Yeah. So we are picking we are picking up the questions from the attendees in the room very clearly. Yes, Yeah. Thank you. So I have to repeat everything. Thank goodness. Yeah. The key thing for us is, yes, we've a great product, but it's not being used anywhere. You know? And we really need during the next twelve months, we really need to have something up and running where we can demonstrate that this product this great product is actually being used.

1:27:25 And that's really know, you we're looking at a range of applications where we think that that that is the case. You know, the the thing that I think will help us during the next twelve months is that the focus has become very, very environmental as well. And I think we've got some great environmental credentials to support the the the economics, which we've presented, you know, are are still very supportive. In terms of, you know, the executives that, you know, we've lost, you know, I I think in in the case of Mike, he can answer for himself. But it it was always the intention that Mike was planning to go from an executive role to a nonexecutive role, and it just so happens that for various reasons, you know, he took it. He's still with the company very loyally for way longer than I think he planned to do. And certainly, when we we when I first met with Mike, his intention was never to stay as long as he did. So I'd I'd like to really thank him for being as patient and staying as long as he did, frankly.

1:28:22 You know? And that's you know, and that's been that that you can say that's a disruption in terms of the case of Mike, but what we have we already had a transition plan anyway that we've been we we we're working on since the beginning of 2020, actually, where some of Mike's activities were being taken on by others in in the team, myself included and David and other people. So that disruption is, for sure, is there because we have to see interview new people, and that takes time. But that, you know, that that's just life. In the case of Mark, you know, he he was snapped up by by Greenergy. Right? He's the head of their future gen renewables and working for people where he'd worked with before. So was hard for for me to say to to Mark, you know, please stay with QUADRISE because, know, he's been snapped up with, you know, pretty sexy job from, you know, a pretty large company.

1:29:13 And I think that's I don't know. That that's a that's a good sign of the peep the type of people we employ that we have to, you know that those guys, you know, are valued by, you know, people out elsewhere. And I think it's it's also a competitive world out there as well. So in terms of, you know, the executives that we we that we bring in, they have to they have to meet the right criteria, frankly, and and we we get, you know, we we've made mistakes before. We've got people in, and they haven't been able and willing to to roll their hands up. And each one of the people you see here on the board, you know, we are scrappers. Right? We are a small company trying to get this this business off the line, you know, and we need people coming in who've got that fighting energy who are gonna, you know, wake up in the morning, jump out of bed and, you leap quad you know, shout QUADRISE and and go off and take on some of these big, you know, these big giants who are in the middle of this space race. And I think I'm not sure if I already answered your question in terms of executives, but, you know, how's it gonna be viewed? How how are how how's QUADRISE being viewed by the people coming in and and attracting investors, but also attract attracting talent? I would say that in the case of the COO role, we had a number load of really, really good clients on there, all of which a lot of which are from, you know, oil majors, really excited about the the QUADRISE story.

1:30:36 Now they can really see we're sort of at that. We've always been, you know, we've we've been there before. But, you know, we really think that with the, you know, with the Bio MSR addition to the to the stable, we've got a very, very interesting ESG story, you know, during the next ten years that we, you know, if we can nail this down in the next few years and, you we we really believe truly believe that there's a great future for the company. And that's exciting. That does excite people, frankly. If we were purely a pure play company, I don't think we'd have the same interest from people coming in. You know? And that's the same, you know, similar candidates we're now seeing for the for the non exec chair role that we're we're now sifting through. We've got some very serious heavy hitters there that we're looking at. So, yes, it's annoying to lose people.

1:31:25 As a small company, we do get hit by, you know, by staff leaving, frankly. But we've, so far, touch wood, we've had a very, very loyal team, and it takes an exceptional reason for people to leave the the QUADRISE stable in general unless we've decided they have they don't quite meet the the scrap of mold. And could I maybe just but in particular, think just to absolutely come back on one thing, it isn't that I don't share that vision and that excitement. When I first came into the business, actually, Laurie and I were saying I my first AGM was actually before I'd actually joined the company and actually sat next to Bob on the front row about two or three days before I formally joined the board as a nonexec.

1:32:11 I then went on four months after that to become executive chairman. And at that time, the expectation was I would be in that role for about eighteen months. When I then we then put in the the plans in terms of moving to a a nonexecutive capacity, it was my view that, actually, I think it's a very different proposition for a chief executive like Jason to work with someone who's been executive chair for eighteen months and then moved back to a nonexecutive capacity than it is for someone who's been in that role for nearly six years. So I think in terms of absolutely getting the best out of Jason, my view was it was best that it's a new nonexecutive chairman coming into this role. And And I I absolutely still believe that's the case.

1:32:58 In terms of the disruption, I think Jason's put it really well. The the disruption caused by Mark leaving is more challenging, but that has been actively managed and is actually effectively dissipated almost entirely when this new person comes in very soon. And I think you'll be really excited when you find out who that is and their experience. In terms of disruption caused by me, it's like taking your hand out a bucket of water. When you take your hand out, there isn't a hole left there. So I you know, Jason is irreplaceable. I'm not. Laurie will come in seamlessly take over that role in an interim capacity. And And through the process that has been gone through with external executive consultants, we'll get absolutely the right person to be leading the business as nonexecutive chairman in the future, but with absolutely Jason leading the business as chief executive.

1:33:58 But I think the other thing is, you know, whilst I've been privileged to act as executive chairman, one of the things that we've been able to do is build up who've already been within the business a long period of time. In particular, it's been great working with David who's been a really invaluable supporter of of myself in terms of the PR and IR taking increasingly positive role in that alongside Jason. And it's actually, you know, bringing that capacity up within the business so that it does have the people who are out there scrapping on a day to day basis. Will continue to be supporting the business from afar, and I will be retaining my shares. And I'm I'm not I talked to to Nick about this earlier. You know, I own those those shares jointly with my wife. So when I say I'm not gonna be selling those shares, it isn't a case of I will or my wife. I won't, but my wife will. The only things that you would see potentially in terms of me selling shares if I do a bed in ISA because some of them are still not in an ISA.

1:35:02 Other than that, I am very content to retain my shares. I think there's huge value in them, and I've still got options in the business that I think there is huge value there as well. But, absolutely, this business is gonna be better led by a new independent nonexecutive chairman in terms of the board, and it is absolutely best led by Jason as CEO, and he's doing an absolutely fabulous job doing that. Like a good time for me to say a few words as well, Jason. Shall I come over? Yeah. Why don't you do that so people can see it, though? For those online, I'm Laurie March. And as you've heard, I'll be taking over as interim chairman for a short period of time.

1:35:52 And I'm sure those online and in the room here would all want to wish Mike and his family all the very best going forward. As Mike just indicated, he joined the company as a non exec director in December 2015. He's been with us for almost exactly six years, and he was appointed chairman four months later. And as we've spoken about today, the company's been through some challenging times during his during his tenure. After much promise, we had the disappointments, of course, in Saudi Arabia and Maersk. But on a more positive note, under Mike's guidance and leadership, and of course, with the continued support of yourselves, our shareholders, The company successfully concluded a number of fundraisers and what this has done has substantially extended the range of potential business opportunities that you heard about today, including the exciting transition to biofuels and the net zero potential for the company.

1:37:14 And in my view, and I hope in your view as well, it's in one area in particular where Mike has made a tremendous contribution. And that is in much improved investor and shareholder relations. And I hope you would you would all acknowledge this. Let me take a moment, and I'm going to touch on on something Mark said. Speaking personally, although I'm the interim chairman, and we hope, as you heard, to appoint a successor to Mark promptly, I do want to reassure you, both those online and in the room that and I I think I speak for Phil and and Dilip as well.

1:38:01 We will absolutely break a leg to give Jason, David, and their teams our fullest support to realizing our hopes for the company over this exciting period ahead. So on your on behalf of the Board and on behalf of shareholders, if I may, if we could say goodbye to Mike and wish him all the very best in the future. Jason, just to say that we can make available immediately after this presentation all the pre submitted questions that you very kindly responded to just for your reference. So I think we haven't managed to get through all the pre submitted questions, but we've we've I can assure you that we've answered all of those. And I've been told by market investment company that they'll be available immediately after the meeting.

1:39:08 So I think that we'll draw the meeting to a close. I'd like to thank everyone who came to the meeting today for the update. And if you have any further questions, feel free to, obviously, send them into IR, and we'll work through those as soon as we can. So thank you very much for your participation today. Thank you, guys, all online. I hope you got a good experience. Thank you. That's great. Thank you very much to the Board of QUADRISE International for progress in today's Annual General Meeting. Could I please ask attendees not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order the board can really better understand your views and expectations? This will only take a few moments to complete, but I'm sure will be greatly valued by the company. Behalf of the management team of QUADRISE PULLS International, we'd like to thank you for attending today's presentation. That now concludes today's session, and good afternoon to you all.