Synthetic Fuel Firm Extends Maersk Deal

Maersk agreed to extend the contract through 2022

Quadrise International Ltd. (Quadrise), maker of synthetic fuel alternatives, says it has extended a royalty agreement with A.P. Moller-Maersk (Maersk) regarding its Marine MSAR Bunker Fuel Oil.

The deal, which provides a legal framework for future commercial supplies of the fuel to Maersk, was first signed in February 2011 and has been extended through December 31, 2022, a three-year extension to its original 2019 expiration date.

Quadrise also announced that two testing programs related to its work with Maersk are moving forward.

After a successful first phase of seaborne tests with Wärtsilä, Quadrise said minor modifications are being made to test equipment before the start of a final phase with high load tests and continuous operations using the fuel, and the programme should be completed by early Q2 2014.

Another set of land-based tests with MAN Diesel have not been completed due to third-party delays, but the tests are scheduled to be completed during Q2 2014.

"There has been an unprecedented interest in QFI over recent months which correlates with the step-change in market capitalisation and a growing appreciation of the 'game changing' potential of our project programmes," said Quadrise Chairman Ian Williams.

"This is truly gratifying and recognises the commitment of management and shareholders over several years as the Company transitions to continuous commercial operations."

Quadrise has said a successful completion of the tests will signal a transition to commercial operations in partnership with Maersk.