Quadrise (LSE:QED) — Interim results

0:01 Good morning and welcome to the QUADRISE PULLS International PLC Interim Results Investor Presentation. Throughout this recorded presentation investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin I'd like to submit the following poll.

0:29 I'd now like to hand you over to Jason Miles, CEO. Good good morning to you, sir. Good morning, Alessandro. Good morning, ladies and gentlemen. Thank you for joining the the QUADRISE interims presentation today, an update. Obviously, there's there's quite a lot happening in the world, so we'll give you a little bit of an update in terms of what's happening in in our world and what our plans are going into 2022. Today, I've got, obviously, I'm I'm joined also with I'm delighted to be joined by with Andy by Andy Morrison, our new chairman, who'll be available for the Q and A afterwards. We've got about just under 70 pre submitted questions already that we've prepared answers for. So we'll try and answer as many questions that come in today as well as obviously questions that have that that are submitted as you as we go through.

1:24 Just a quick formality slide. This is a slide we presented at the at the AGM, but still very much a theme that we we continue. And indeed something that was picked up on I believe one of our BD share BDI shareholders were picked up in a in terms of the commons. In terms of where we sit obviously there's lots of talk about green fuels, green methanol, green hydrogen, green ammonia. But something needs to get done today. And really what we see with MSAR and BioMSAR is a pretty unique transition solution that can be deployed very, very quickly and improve immediately the emissions of CO2 and NOx, etcetera, as well as reduce fuel costs.

2:12 Carbon intensity is ramping up in its importance to the energy sector and the oil sectors that we we that we work in. It's it's really being applied if you look at the the graph on the top left. This is a this is from a a recent plats webinar that was done. But, you know, it's being applied to both upstream applications, which is obviously relevant to, you know, projects we're looking at in in for instance in in Utah. But it's also relevant. The the graph below is with respect to downstream applications as well, where there's definitely a requirement and you know, for refineries to upgrade today and try and produce more diesel but the problem is that when they do that and they invest in equipment to do that by way of cokers or hydro crackers on the right hand graph you see what happens to the carbon intensity of that particular refinery.

3:04 So MSAR offers an opportunity for that refinery to produce more diesel and less fuel oil but without impacting its carbon intensity at all. So we believe that that's obviously an important feature and becoming quite a limiting limiting factor for some of the refineries today in terms of hydrocracker and hydro treating applications. That's important because if you look at the the emissions on the use of marine fuels especially and fuel oil in general, about 15 to 20% of the CO2 burden from a well to wake or you know, well to tank base, well, sorry, well to wake basis is really from the extraction and the refining process.

3:50 So, if you can cut down on the the amount of carbon that's that's that's created and the greenhouse gas emissions that are created when you actually get it to actual final use, then that's an important feature. So we are very focused on looking at obviously lower carbon fuels But also existing fuels that have a lower carbon intensity. And again, that's for instance the project in Utah is an example of that. In terms of the overall and how these marine fuels are being looked at now, there's an increasing focus on the full life cycle of these marine fuels. So well to wake is an important very important way of looking at you know of looking at the classification of different types of fuels.

4:38 And also what's the implication over a longer time period. So well to wait today instantaneous but also looking at a twenty year basis or a hundred year basis that all influences the grading of fuels. And that's having quite an impact as well in terms of how other fuels such as LNG are being evaluated. In terms of overall demand, you know, how has it changed? Obviously, there's a lot of talk about decarbonization. But in reality, in terms of the fundamentals, there's still going to be a fairly consistent use of existing marine fuels, both high sulfur and low sulfur. This is not a this is not this is obviously data that's come from a very reputable third party.

5:25 But in terms of you know, plats that they see that up, you know, up to 2040, there'll be consistent demand for marine fuels. And also what's happened obviously most recently through the the impact of I I guess you know moving out of COVID as demands recovered. Oil prices and the spreads have increased over the last sort of six months since we spoke. And obviously the impact of the the recent Russian invasion of Ukraine. There's obviously spiked oil prices as well. And reduced the amount availability of diesel such that the the the price difference between diesel and fuel oil has been been higher than has been since pretty much twenty two thousand and eight.

6:12 So obviously that that's obviously a helpful factor and instantaneous thing at the moment for us in terms of looking at M Sol economics. But it's been progressively getting better since since we we had the AGM when we last spoke. That has a you know a big implication in terms of also the cost of fuel is you know people are very very mindful of that. Obviously given the removal of energy price cap you know as consumers of of energy internally and on a personal basis everyone's very mindful of the cost of fuel. But our customers are extremely mindful of that as well. Now and anything that relates to improvements in fuel efficiency. It's something that's very very important and something that you know not only not only quadrise but you know people like Barts that are are are sort of publishing in the press as well.

7:05 So in terms of where we are with efficiency, the work we've done with diesel efficiency has really been focused around the testing that we've been doing on Bioemstar both at Aqua Fuel where we have a a four stroke Cummins engine and also at VTT where they have a four stroke Vartsila engine which has been proven and tested on prior emulsion fuels such as our emulsion and also on Emsa. So what we're seeing is we're seeing some quite dramatic potential improvements in efficiency when we when we do some minor changes to the engine. So what we've been doing at Aqua Fuel is looking at advancing the timing of of the engine. That's really to simulate how the fuel might behave in a in a higher compression engine such as a two stroke.

7:53 And what we found so far and there's some further work planned in the coming quarter with Aqua Fuel to develop this work a little bit more and also to look at other fuels. But we look what we're seeing is that we can get much higher efficiency with a four stroke diesel engine but without getting vast increases in knocks. The the problem with conventional fuels is if you advance ignition timing with conventional fuels you end up with higher emissions especially of NOX above the the guidelines and the limits that that these engines are set for originally set up for. But you don't see that issue with when you run bio MSA. So we've seen some very good improvements in inefficiency. We previously saw some good some excellent results with M SAR as well in terms of fuel efficiency. So a lot of work now is is really focused on the application of an oil and water fuel in in a in a four stroke engine but also in a two stroke engine later in the year.

8:54 So in terms of the work we're doing beyond the aquafuel work that I mentioned before is in advance of the the planned two stroke testing with MSC on a vessel.

9:04 We also are planning some other preparatory tests on an optical combustion chamber to look at how the fuel performs and I can answer some more questions on that after this presentation. And also then look at the longer basically do a simulated wear test as well. To compare how BioEmsar compared to the prior work we did on on MSAR and conventional fuels.

9:30 In terms of MSC, where we are is that we are in the middle of contractual discussions with MSC, where a proposal has been submitted to do the vessel trial. We've agreed with with MSC and Varts so that that have that the the vessel trial can be done without doing any stationary engine testing. So that's that that's the breakthrough that we've we've had during the period. We've committed already to do the the the combustion chamber work and the wear test with Vasa there as well on the two stroke engine. So the basically the the trial proposal is is under review and we're looking to get that signed off in the coming weeks. And that will but that will run on a on a varts of the varts of the vessel on an electronically injected engine, the flex engine which is where we did the similar to the the the same engine as we did before on the Vartsila with Vartsila and and Maersk on on MSO.

10:33 In terms of Utah, we're working, obviously, we we did some some testing with the the material that came from Greenfield from the the PetroTech site. There's some further work that's ongoing at the moment looking at subsurface oil which is the most interesting for us. And that's really that subsurface material is the material that will be utilising you know, when the when the drilling assuming the drilling goes goes well and the the drilling is basically completed now and they get their permits in the middle of the year. The intention is to to agree supply of the of an EMSL unit with a view to then operate in that unit to start supplying local customers in Q4.

11:22 So that that work is ongoing. Valcor are involved in not only in obviously they they have an interest in Tomco but they also have interest in a number of other opportunities there as well. So discussions are ongoing with Valcor in terms of deployment of of MSAR and Bio MSAR fuel production facilities in that part of the world for for local supply. And that's a low sulfur oil that meets IMO standards. And in terms of Morocco, where we are is looking to conclude the agreement that we had previously. The agreement expired at the end of at the end of the year. So, an addendum has been drafted and is in current negotiation with the client of the new team there.

12:11 The addendum covers then the trial in in this in site B which is an industrial trial of about 60 tons of MSAR. We're also looking to do a a follow on test also with with BioMSAR to get some data on a industrial application. And then the intention is you know on the upon results of a successful trial to initiate commercial discussions for for for commercial supply and obviously you know the the high prices of fuel oil are are helpful in pushing forward that that particular agreement.

12:45 And the in The Americas we're working with two agents in different parts of The Americas. So in in PC are really focusing on the Central America region. And we have discussions with a particular client that owns assets both in Panama and and in and in Honduras on Vartsila full stroke engines. Which we you know we well we're we're well proven on the on MSA fuel. So we're planning to do a a test

13:15 with one of the clients there. Looking to conclude agreements for for particular test on a four stroke engine. And that will lead to then potential demand for for MSAR and in the future potentially bio MSAR. And in in Mexico with Redliner the opportunity is really focusing around the national oil company there. We've received all of the data that we needed finally to do the economic and technical review of their particular refineries. Two of their largest refineries are in scope

13:48 for production of MSAR. And we are putting together a trial proposal for one of those one of those refineries to look at a an in refinery trial, which would basically displace refinery fuel ultimately with MSAR. So that would be supplying one of the boilers in the refinery. And, you know, one one one of the largest refineries there basically produces about what sorry, consumes around 8,000 barrels a day of fuel oil. So there's a good opportunity internally within that refinery. And obviously you know that's what that's being progressed in Mexico. And and and in the same time in parallel we're sort of lobbying at a political level to make sure that you know EmCell is part of the the political discussions as well. So we get a we get some political pressure on the on the NOC to get things moving.

14:37 So this is a summary of of of what we plan to do. We are putting pressure on ourselves to get these various agreements signed off in the coming month. So, you know, what we're looking to do is by the end of end of April, look to conclude all of these the the three main agreements that we've got in terms of MSC, Utah and Morocco. And bring those to a to a head. And then we also carry out a strategic review of of where we want to be as well. So we're putting a bit of pressure on ourselves internally to get everything done within a month's time.

15:17 And the green arrows are really signify where we believe we'll we'll start to get commercial revenue. So the first commercial revenue project that we see should come from Utah, obviously subject to agreements being signed in due course. So the first source of revenue that we see will come from Utah and then Morocco will follow. Obviously, MSC is a little bit longer term because you need to go through, you need to prepare for the prepare for the trial, supply the equipment, that takes time. So, we'll be up and running by the end of the year. The trial itself will take about eight months to do and then about the halfway point in that trial at two thousand hours is where we believe that we'll have commercial discussions. And the the agreement we have with with MSC will be for the trial but it will be also covering a a commercial framework on top of that in terms of the overall roll out of of Bio MSR on Pon success.

16:10 So that's that's taking a little bit obviously a bit of time to to finalize. Obviously, there are certain things that we can't control. We're not using excuses. This is an excuse but reality is that it's been quite a a turbulent time to get things done. But many things are working in our favour especially the high oil price and the spreads. In terms of where we are in people, obviously, we had Phil Phil Hill starting as our COO at the beginning of the year and Andy's very kindly stepped in as a as chairman beginning of February and both of those guys have hit the ground running. And the rest of the team are unchanged basically with our with our consultants. So we're we're fully equipped with the people that we need to get things done.

16:56 In terms of cash we have about $56,000,000 cash reserves at the end of the year.

17:03 So that that allows us certainly to get to revenue generation and at the current cash burn rate of about two forty a month if we excluding any you know discretionary project costs on top. That's enough cash to take us through to the second half of or near the end of twenty twenty three. Obviously, there are tax offices available to displace against future profits if we once we get to the revenue generation phase, which we plan to do.

17:33 So that's the summary of where we are. We certainly see that you know MSR and Bio MSR have a place in in the energy transition space. But really for us now it's important to get you know we've got a great technology. It needs to start generating revenue. And that's really our focus now. Is to get into revenue generation as we said we would at the AGM and we're saying again now. You know, we need to get this our technology out there and operating and generating money so that shareholders can get some returns on their investment.

18:07 And that's the end of our presentation and be delighted to take some questions from that have come in already. So Jason, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just using that Q and A tab which is situated on the right hand corner of your screen. But just while Jason takes a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with copy of the slides and the published Q and A can be accessed via your investor dashboard. As Jason mentioned, received a number of pre submitted questions and we have also received a number of questions throughout today's presentation and thank you to all the investors for submitting those. Jason, if I could just ask you to read out those questions and give response to where it's appropriate to do so, that'd be great. Then I'll pick up from you at the end. Yeah.

18:54 Okay. Let's pick some of these out. Some of them are quite long. So there's a question from Mark Skinner I believe or Marques anyway around there's a increasing energy crisis unfolding across Europe due to reliance on Russia on fossil fuel. In particular, this is causing a shortfall in diesel fuel. The Russia supplies over 60% of Europe supply. QFI have an immediate solution for to this crisis with MSAR. Why refiners and end users not queuing at the door for MSAR? Why are we so unable to achieve commercialization of MSAR even now? Are there any shortcomings in the MSAR application we're not being told about? Really to answer the the question there for Mark. I mean the key thing for us is to secure a customer. It's not just the production of MSAR. The question is then where is it gonna go?

19:43 So really the the focus is on getting various things aligned in terms of getting trials done, so that there's a definite customer for MSAR fuel. So in the case, for instance, for Morocco, once we complete the trial at the end of site B, by the end of this this coming quarter then you know we should be in a position then we we've got a we've got a customer that wants the fuel. We've a quantity that we know that they'll need. And then that's the discussion we can have with the refinery. So the refineries are definitely there and interested, but we need to demonstrate that there's actually somebody gonna be by, you know, there with a buy order. And that's what we're looking to do is to focus on the clients and the end users. Similarly, doing the same thing in in Panama as well and Honduras obviously.

20:33 So the shortcomings are really getting up and running and doing getting these projects working so that the first revenue generation, the first unit is extremely important to get that that moving. And that's really our main focus.

20:52 What else have we got here? This one from Jeremy. Have QFI explored the idea of securing a champion with a high profile and a wide audience to extol the commercial environmental sense of adopting MSAR as an interim fuel. This could be a paid appointment. This does not need to be an individual. It could be an organ an organisation such as the Institute of Economic Affairs who have been in the media recently pushing for urgent development of interim fuels to bridge ease the gap with net zero to net zero solution and renewables rather. What discussions avenues have the company considered along these lines? Yeah, mean, we are in discussions. Well, we have been in discussions potentially with, you know, government entities. They I guess there's a quite strong lobby group in the gas sector, in the LNG sector.

21:37 So, when people talk about transition fuels and interim fuels, some people really are are using that to steer the discussion back to to gas and methane and LNG. So there's for us to get our our our piece in or our we we're still working on that at the moment but it's it's a lot easier once we've got a project up and running and we can we can essentially get somebody to to do that when when we're in the place that we are now or we haven't got you know a unit that we can actually point to. It makes it a little bit harder to do. And and a lot of the government entities that are that are are really focused on complete net zero solutions and not necessarily the transition space. Well that that does now seem to be changing a little bit.

22:23 But it's a it's a good suggestion.

22:35 What else have we got here?

22:42 There's another one from Jeremy. I I previously issued the company with details on carbon tracker who published papers on cost, emission levels, and life cycle cost comparisons within gas, coal, renewables for government future. Energy strategies, I. E. Japan, carbon tracker stated to me that they do a report on the motion fuels comparison if they got paid. As far as I'm aware this is not followed up by the company. Has consideration to having this type of independent assessment by credible organisations with the area of government energy strategies being considered. It has it well we we did look at it before Jeremy but we will certainly look at it again to see what we can get from that. I wouldn't I wouldn't rule it out but I guess a lot of the work that we're doing we have data for already and we're working on working with very fairly credible organisations as well.

23:38 To get the message across. So but it's a good suggestion. The company has now been traded for eighteen years. Currently the company has no agreements, no trials, no contracts. At each update all the missed milestones are just moved into the next quarter. Why is it all going so wrong and how will you rectify this? Well I guess in the the the presentation that you've you've just seen, we're setting some hard deadlines for the end of this particular month. So, I think like to like to part that for for another month while we get these agreements across the line and that's exactly what we're doing. Every every single project that we've got is definitely on track and we need to get these turned into agreements.

24:22 Quadrises definition of the word imminent. Obviously the energy sector works to different time timescales. It's another one for Mark. Basically, what we're looking to do is get these agreements signed by the end of this particular month and getting revenue the second half of the year. That's our definition of imminent.

24:41 There's one from Krishna. Question for Jason Miles. You say in the recent RNS that although you've been pursuing, I guess, around your projects and businesses opportunities this year, you've not been able to convert them to agreements due to factors beyond the direct control of the company. Can you please tell us what what about what you can about these factors? I guess some of the factors around availability of resources both with the clients and the OEMs in the case of MHC. Obviously there's lots of other projects that they're working on. They have their current business to deal with as well which is not not straightforward at times especially when there's a you know there's a war going on or there's a a pandemic to deal with and shortages in the supply chain. So some of our customers obviously having to deal deal with the day to day their day to day operations as well as you know a potential trial with our company.

25:33 So I would say that that's not been easy. Er some of our clients have have have also been dealing in a lockdown situation where they're all working from home and not been on-site. So that's delayed them getting information for us. But the world's returning to normal and certainly you know we we're now have boots on the ground in in different places to get these agreements across the line. This one from Vic. Vic A, would you welcome shareholders lobbying our local MPs to put the word out about MSA and its derivatives in the current and its derivatives in the eye is or I think this is is this an ideal current ideal climate for for their for shareholders to do that.

26:19 I think it is. But although what I would say is that you know the applications for MSAR and BioMSAR in The UK are probably

26:30 not as great as in The UK as they would be in other parts of the world. So in terms of UK business it will help certainly help QUADRISE but doing something in The UK the scale of it will not be necessarily as bit as good as it could be elsewhere. But there are certain projects that we're looking at in The UK so that wouldn't do any harm and I I we do get we we have seen obviously shareholders already doing that. So thank you very much for that. One from Andrew P. The green timelines on commercial agreements are best case scenario, aren't they?

27:06 As opposed to a balanced prediction. They are a balanced prediction. Andrew to answer your answer your question. But also that you know they are they need to be demonstrated that that's gonna take that that's gonna that's gonna actually gonna happen. So really what we're looking to do now is get the agreement signed by the you know by by the end of April. And that will then provide some certainty as to the green timelines as well. So that's work in progress.

27:40 Andy, feel free to step in if there's anything you would like to answer specifically. There there was one question that was for me that was actually I answered online and but I could answer it in public as well. And it was about whether I have bought any shares yet. And if I haven't, why not effectively? And the answer is no, haven't bought any shares yet. I do always get involved in companies that I'm Chairman of, and I will in the future, I'm sure, buy shares. But there are as you'll appreciate, there are very limited periods when which are not closed periods for directors.

28:25 And we've only just published the results. And as you've heard, Jason's mentioned on a couple of occasions that we are putting quite a bit of pressure on trying to get agreements by the end of April. So I would still consider myself in a closed period at the moment. But absolutely, I think somebody in my position ought to be acquiring shares. And when the time is appropriate, then I'm absolutely going to do that. So thanks for the question. A question from James C. You've explained in detail about the OEMs, ESG agenda and how that presents an obstacle to to testing MSAR. Please explain to shareholders what MSC's position is towards MSAR as of today, not January 2021 when the JDA was signed.

29:17 So, MSC's position with regards to MS MSAR is not changed. They would like to use MSAR. However, to use MSAR on their vessel, they need to do an engine test and that's something where the OEMs and one of the OEMs specifically was unable to provide that level of support because they were really focusing on green fuels and biofuel specifically was one of the was one of the components that they would look at. So that's why MSC switched the program to bioemstar. That required us to do a lot of the testing that we had to do both with with the Aqua Fuel and also a VTT on the Vartsila engine. And as a result of that you know we've got one of the the OEMs now on board to run the bio MSAR test. So MSAR is very much on the agenda also for MSC but the fastest entry point to get a test done is with Bio MSAR and that then whatever we put on on the vessel for Bio MSAR is also applicable to then trial MSA as well, conventional MSA fuel.

30:31 Question from Kevin D. For Utah to generate revenue in H two we must have end users lined up. Is this correct? That that is the that's certainly the intention, Kevin. But yeah, we've the the work that's carrying this that's happening this month during the during the next few weeks is to basically line up exactly those end users and determine what's required for them to actually start running on on MSAR or bio MSAR. A question from Sean. Is there any reengagement with Lithuania? I would say yes at the early stage. Obviously, energy security is back on the agenda. They they have built a brand new LNG terminal.

31:16 But obviously the cost of that imported LNG is going to be quite punitive at the moment. So yes we do believe that there's an opportunity in Lithuania but to be be worked on further. A question from Colin with regards to a UK or a UK based company. Why do we not have UK companies wanted to use Msa or Bioemsa? That's really due to the emissions limits in in Europe. The main use of I guess MSR and bioemsa would be it probably most likely be in the marine sector and on on vessels that that may or may or may may or may not have scrubbers. So UK companies they're asking UK companies but not necessarily with you know a large modern fleet, new engines etcetera. So the main companies that we're dealing with in The UK would be shipping companies that have got UK offices.

32:13 But not necessarily power companies. What's the likelihood of QFI sufficient quantities of glycerol should a bioemcel alone over agreed and and MSC wish to go commercial? And can you give an estimate of what that might be available to in that scenario? It's difficult to say at this particular moment in time, James. But definitely there definitely there's there's sufficient quantities of glycerol available. And we're talking crude crude glycerin here. We are in in the process of having live discussions with with biodiesel manufacturers who have who who produce basically crude glycerin as a byproduct. So those discussions are ongoing.

32:59 Each of those particular clients probably ultimately has enough glycerin to supply sort of three to 10 vessels. So and the types of vest the type of engine test we're doing. There's probably about 30 vessels or so in in MSC's fleet that can run on for instance the Vartsila Flex engine. So that's that's the the current estimate and we're we're we're looking to line up supply and obviously the refining of of crude glycerin is an important component of that to get it from a crude glycerin which has got impurities to get it to get to a fuel grade that we can use as well. But yes for the immediate for the in for the immediate rollout during the next few years there's enough glycerin available.

33:44 But we're also doing a lot of work at the moment in in QRF to look at alternative feed stocks. Which can include existing biofuels as well. Whereby the the emulsification of it in an oil and water type system improves the performance of some of those existing biofuels. And you get efficiency benefits which you're obviously looking to demonstrate as well. So even even though there is an ultimately a limit on the availability of crude glycerin there are other feedstocks that we're looking at in terms of biofuels feedstocks. Question from Andrew. P, will we come back in one month to confirm if these hard deadlines have been achieved? Well, that's certainly what we're looking to try and get done by the end of this particular month. I think the plan is then to have an internal strategy review and then revert to shareholders sometime in in May in terms of where we are and where we want to be going forward.

34:44 Yes. Just worth saying there, Jason, I think that anything important that we've got to say, obviously, will come out as an RNS first, and then we would look to engage shareholders in a forum like this afterwards. What else we got here? There's a question from Adam C. One of the biggest flaws in QUADRISE's approach to securing a customer is is selection. Mainly picking huge companies that move a glacier place. Why can't we secure a more nimble customer who has a desire and need to move quickly to benefit from MSR? Well certainly the customers that we're looking at in The Americas would meet that particular grade.

35:31 But obviously the proof of the pudding is actually getting that into a into a contractual form. The projects that we're looking at in Utah as well are a different type of customer I guess. And that's certainly, you know, where we believe that we can get a commercial agreement signed off earlier in the earliest phase to get into revenue generation. There was a question from Sean with regards to meeting with the KSA representatives. That meeting was deferred to the beginning of this year and then we had a meeting planned last a few weeks ago when there there was a delegation coming over to UK. But we plan to attend one of the seminars there.

36:18 But unfortunately that that didn't happen. So there's been obviously the the change and that is where the external factors come in. Sometimes these the people and representatives that you're dealing with suddenly have have to focus on the you know dealing with sort of energy crises that are happening happening around us in terms of the Russian issues. So there's certainly a big market there in KSA but the focus at the moment is again the the near term projects across the line. A question for Malcolm. When MSR and BioMSR is the hot fuel that everybody wants. How quickly can supply be rolled out to all refineries and supply depots?

37:11 I guess in terms of the the equipment that we supply you know all of these things can be done relatively quickly within sort of six months which in energy terms is is pretty fast. We we have two units already that we can deploy so we can be up and running with those units that we've got in place at 40 ton an hour units that we have. So those units of what what we're looking to you know supply to the initial contracts. So we get some return on our investment. And then bio MSA production is really linked then to the availability of of glycerin and then refining of glycerin and that's what we're working on on with the in terms of the the biodiesel manufacturers. But obviously from a refined oil refinery perspective the economics are we we obviously we're in good place at the moment.

38:03 Marques, there was a question about the reengagement of the new Moroccan client team. It seems that this has moved in a positive direction since the previous updates. Has her agent been effective? Yes, the agents has been effective. And yes, there there we are moving in a positive direction. There was a a recent Morocco Now event that we also attended last week which was was very very useful and well attended by a lot of different entities both in Morocco and obviously UK companies and UK politicians as well. Question mark about who is a potential partner in Utah. We've heard Red Greenfield, Tom Cobell, heavy sweet oil but it's unclear who. The main parties that we're dealing with are are basically parties where we've had agreements with before and that's basically Valcor initially we had an MOU with Valcor and Tomco who basically through Greenfield are involved involved with with Valcor as well.

39:12 What's the likelihood our agents in Mexico make the necessary political connections to progress MSAR trials? At the moment they're doing a doing a very very good job in progressing things on our side. The the delays have really been with the national oil company. Sort of lack of supply of data which we now have when when we've got a a full suite of data. So it did take some time to get the information that we needed but we have got it. So now it's a question of putting something together. In Morocco, could you clarify if the meeting is now taking place with the new c suite? Is there a new is now a commitment amongst them to proceed? That's the agreement that we're looking to get the addendum that we're looking to get signed off at the moment. Yes meetings are ongoing.

40:02 We have meetings in basically planned also next week and previous weeks we've had as well. So yes the meetings are ongoing with the C suite. If their commitment what they'll be the commitment is will will be when the group when the addendum is signed. At the moment that's that's moving in the right direction. A question from Chris A with regards to the OEM testing of Bioemsa. What is the linkage dependency between the testing and moving on to vessel trials? I guess the requirement for the if you I guess you're referring to the the varts and the tests that are planned this year. I guess the the main question mark around that we haven't tested yet is what happens when you're spraying we we move from a from a four stroke engine when the cylinders are this big to a a two stroke engine when they're the cylinders are about a metre diameter potentially.

41:02 There's a question of the the key thing is is the actual injection and spray of of the fuel in that particular combustion chamber because the scale up is is extremely important of the fuel injection systems. So the work that's that's being done in the optical combustion chamber in Bartsula is to look at you know the the spraying of bio MSA compared with MSA in a combustion chamber because obviously MSA was done before. So we can compare directly M SAR versus Bio M SAR and see if there's much of a difference. And then look at the optimum injectors that can be used for the two stroke engine and the injectors are quite simple to to change. The nozzles themselves are quite simple to change. So that's that's an area where you know if you can get optimum spray and injection in a bigger two stroke engine that's this is a test that you do it. That you you do it on.

41:54 And it was done before with MSAR. So it's it's a it's a standard test but it's a very very useful exercise. It gives you a lot of information in terms of you know the scale up and make sure that the vessel travel and it runs it will be at the optimum settings it can be. The other test that's being done is a wear test and and that's really to look at you know this is a a water based or now water glycerin based fuel. So you know how is the wear of components affected by using the water and glycerin. We would expect the the glycerin itself is a natural lubricant so we expect that to work pretty effectively. And certainly much better than just having water on its own. So we don't see any issues from that but it's very very useful to get the data. Cos it's a one data point we haven't got any information for yet.

42:41 So that's obviously important for longer term operation of a a large two stroke engine on or or any other engine for that matter on a on this particular type of fuel. So all extremely useful. But in terms of delaying the vessel trials, the the the plan is still to do to to plan everything, you know, in parallel so that everything, you know, these these tests will not delay the start of the vessel trial. They just feed information in to do the trial which will be helpful in terms of obviously injection, optimising injection and and lubrication strategies if needed. Question from Kevin D. Great that we're lining up agreements in April but what's the different what's different this time around that makes you confident that April is achievable?

43:35 Good question Kevin. I I think we were hoping to get a lot of these agreements done for the interims. We we obviously haven't achieved that which we're very disappointed about and we we've set some very real deadlines now for ourselves to get it done. The agreements are in much better shape than they were before and discussions are you know at the final phases for many of them. So that's certainly where we'd like to be. Whether we get all three across the line remains to be seen but certainly that's that's certainly the plan. Any others, Andy, that you've spotted that have come in recently or or shall I keep continuing? Yeah. I think there's a few more that if you just keep scrolling down, I think there's Okey dokey. I'll keep going.

44:25 There's a question for Marques in regards to the vascular testing. I think I've probably answered that one already. So I Where else are we? There's a question from David. You mentioned boots on the ground. Are there any QUADRISE employees on foreign territory at the moment or likely to be in the immediate future? Today, no. Last week, yes. And next week, yes.

45:11 So, yeah. We are very we are very active obviously to try and get these contracts across the line. Question from Marcus. Again, the Utah Inland Markets, what are the main targets, industrial power? There are famously very large facilities like Hennecott Smelting and Refining that are large consumers of of HFO. Yes, there are Mark and there are some other clients as well that we're looking of looking at who were you know, running coal fired power plants as well where, you know, potentially you can use MSAR or bio MSAR as a reburn fuel to reduce NOx emissions. That's one of the applications as well. As well as a possibility some of the other possibilities in terms of diesel engine applications.

45:56 But Kennecott is a good a good option as well. Another question for Mark which is a good one. So, I'll answer it. Is is there a case to add a small amount of glycerin to standard MSAR for lubricity and anti corrosion? Yes, there is. Mark, obviously, there's a a cost implication of that that needs to be balanced as well that we're looking at. But certainly glycerin a small amount of glycerin seems to do a lot of good in terms of the emulsification process as well. So that that is definitely a good suggestion. And something that we we've already looked into. A question from Sean in terms of are there any collaborations with with regards to lignin and paralysis oil developments?

46:46 Not specifically with those two counterparties but yes with others. And a question from James. QFI in their various updates refer to intentions to carry out tests or trials. Do you accept that it matters hugely to shareholders whether these are intentions or these are QFI intentions or also include the relevant clients. QFI intentions are one thing, client customer intentions are the other. Shareholders need to know to whom these intentions belong. Yeah, very good point. James. The reality is that obviously we would not be carrying out these particular trials if the client did not did not want to do it. The intention is really cemented by the signature of an agreement between the two parties.

47:36 So that's the most important telling point for us in terms of you know, that the client needs to sign that off. So ultimately, the intentions are signed off by the manager director or you know, the board responsible to carry out these particular trials in certain in certain locations. So it's really that at that point. But yeah, we would not be progressing these these particular projects if there was not an interest at the client end. Otherwise, you know, we're wasting our time. Final question from Adam, I believe. The place Jason said the focus now getting a customer for MSAL. As As we haven't managed to secure a customer in over eighteen years doesn't need to be an emergency strategy meeting to change your approach because history shows it's not working.

48:25 Well Adam if we can maybe return to that question in a month's time. We certainly plan to to to review the strategy of the company at the end of April anyway and we looked obviously looking to sign off three agreements before then and obviously they are related. Some of those relate to MSR as well. So clearly we need to demonstrate progress. We're we're we're definitely disappointed that we haven't been able to announce anything before the interims and we're very very focused on actually trying to get thing things moving moving forward so that we can get you know we can get some positive progress out there to to shareholders before the end of next month. And there's about 70 or so pre submitted question. Oh there's a few more just come in. Alright. So David B there's a question in terms of Sepsa.

49:22 Is it still a possibility for production of MSAR and BioMSAR? Yes definitely. And who is responsible for finding end user clients for Utah? That's us together with the responsible out there in terms of Tom Coe and Valcor. And any ideas for MSAR for Panama or or indeed Honduras would be sourced. Yes we do have ideas for that. In terms of local refineries. And could another one from Sean, could Mexico act as a central hub for MSAR production in the wider region for those sorry, excuse me. Turn that off. Could MS could Mexico act as a central hub for MSL production? Yes. It could. Perfect. Thank you very much, Jason. I think you actually managed to address all those questions from investors, and, course, the company will review Without my mother phoning me.

50:16 And the company will review all questions submitted today and we'll publish those responses to those answered during the meeting and those pre submitted on the Investor Meet company platform. But just before redirecting investors to provide you with their feedback, which you know is particularly important for the company, Jason, could I just ask you for a few closing comments? Yeah. Thank you very much for for listening in today. The company's really excited about the next especially the next four weeks. I'm very mindful that, you know, we need to deliver on getting some revenue in the second half of the year, and that's really our focus during the coming weeks. So we're looking forward to giving you some some positive results. Perfect. Thank you. And also from from me as well, thanks to everyone for attending and for all your questions and obvious interest in the company.

51:04 And as many of you have pointed out, the conditions at the time has never been better really for MSAR and BioMSAR. And so that's a really positive thing. We do and it's absolutely clear from what you said as shareholders that you're questioning whether we're really going to deliver this time and the belief in that. And it's absolutely clear that we need to bring these projects to a milestone point and that's what we want to do. And Jason's referred to that several times during the course of the seminar today and presentation today. And that's what we're very much focused on. So we do very much look forward to updating shareholders as soon as we can after we've finished our strategy work.

51:50 So thanks again. Jason, Andy, thank you for those closing comments and thanks once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This should only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of QUADRISE PLC, we'd like to thank you for attending today's presentation. That concludes today's session and good morning to you all. Thank you.