QIL has Joint Development and Royalty Agreements with A.P. Moller - Maersk (“Maersk”) to jointly develop and, on success, commercialise Marine MSAR® fuel oil. Maersk are the world’s largest container shipping organisation and one of the largest purchasers of bunker fuel oil.
The development programme capitalises on QIL’s skills in emulsion fuel application and use in large diesel engines. Maersk contributes their vast shipping industry experience and provide unsurpassed technical expertise relating to naval architecture, machinery systems, fuels, exhaust gas emissions and ship management. Maersk vessels provide excellent testing platforms for new technologies.
A key objective of the programme is the production of a stable emulsion fuel manufactured from different oil refinery heavy residues, with fuel properties that substantially eliminate the need for any marine engine modifications. The project includes marine engine tests on land and sea, third party verification and approvals, and conclusion of agreements with candidate oil refineries for commercial supply to bunker hubs.
Chairman's Comment: “QIL's specialist team are fully engaged on this exciting project which aims to supply Marine MSAR® as an approved lower cost replacement for bunker fuel oil. Bunker fuel oil constitutes approximately one third of the global heavy fuel oil market of 600 million tonnes annually, and is a major operating cost for shipping companies. Marine MSAR® has the potential to reduce the impact of rising oil prices on the global freight market and is a key component of the future Quadrise business mix. The combination of lower cost Marine MSAR® marine fuel and "on-board" scrubbers offers a potentially compelling compliance solution for the marine fuels market. The Maersk relationship is a strong endorsement of the Quadrise management team, our alliance partner AkzoNobel, and MSAR® technology."
Market overview: The international marine fuels market is one of the largest global fuel markets and is facing serious challenges related to compliance with new progressive emissions standards. From 2020 new standards can only be met if the fuel oil sulphur content can be dramatically reduced, or if the ship owners can afford the additional cost of on-board emissions scrubbing. The practical and economic feasibilities of the oil refining industry adapting to produce the large volumes of low sulphur fuel oil or distillates required for this major market is in doubt. The associated cost will have major implications for refining process economics and related oil product costs and prices.