Quadrise: We're Not Dependent on Fuel Oil Demand Growth

by Ship & Bunker News Team
Tuesday March 31, 2015

Quadrise Fuels International plc (QFI) Executive Chairman Ian Williams says the company, which is moving towards commercial production of its MSAR emulsion fuel, is not dependent on fuel oil demand.

"QFI is not dependent on fuel oil demand growth to create market opportunities," he said in the company's latest half-year report.

Williams added that QFI would grow by taking market share from current fuel oil demand in the marine and power generation sectors.

He also said that demand for distillates is projected to grow while refinery upgrades necessary to meet the demand are being put on hold.

The combination of these factors will increase the differential in the prices of heavy fuel oil (HFO) and distillates, boosting MSAR demand for which is driven by that differential, he said.

In addition, "it does appear that the combination of Marine MSAR2 fuel plus a modern scrubber should offer the lowest cost full compliance option for large modern vessel operators in the future."

In particular, the group aims to move from a research and development dominant phase to begin closing deals with prospective customers and suppliers, said Williams.

"The prime focus of management is to make the transition to contracts and operations over the next 12 months."

Earlier this year, Ship & Bunker published an analysis of the MSAR plus scrubber solution.

Ship & Bunker News Team
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