Quadrise Fuels International PLC (AIM: QFI) expects to conclude a contract with AB Mazeikiu Nafta, which operates the Mazeikiu oil refinery and processing plant in Lithuania, regarding the first commercialisation of its MSAR technology before the end of the 2009 calendar year.
QFI produces an emulsion fuel, Multiphase Superfine Atomised Residue, it claims is a direct substitute for conventional heavy fuel oil (HFO) for use in diesel engines, power generation and steam raising.
Whilst the project has been subject to schedule slippage arising from a realignment of competing fuel prices and oil price volatility during 2009, a definitive proposition for the MSAR technology has now been submitted to Mazeikiu Nafta who, in turn, is in negotiation with counter-parties regarding long term fuel supply contracts for power generation, Quadrise said in a statement.
The project would be the first large scale refinery based residue emulsion fuel production plant in the world, the group said, adding it should produce revenues for Quadrise in the second half of the current financial year to June 30 2010.
Positive discussions regarding its technology continue to develop in Saudi Arabia, and it expects to provide more definitive information on this towards the end of 2009.
Quadrise’s cash balance at the end of June was £2.8 million.