Investor FAQs

When can we expect the Company to begin generating sustainable revenue?
We cannot put definitive timescales on project scope and revenue generation at present. However, we are encouraged by the increase in interest that we have seen recently, and we are working hard to translate these opportunities into defined projects at the earliest possible opportunity, both directly and through our partnerships with Freepoint and JGC.
There have been a lot of rumours about Maersk potentially u-turning on their decision to exclusively use compliant fuels. Could they potentially re-engage with Quadrise regarding the use of MSAR?
We are aware that Maersk is now installing a limited number of EGCS in addition to using LS fuels to meet 2020 compliance. We are continuing our discussions with Maersk and will provide an update once we have anything material to update shareholders with.
Can you elaborate on what the partnership with JGC has brought to Quadrise in terms of current projects or opportunities?
Our approach is different with each of our partners. With JGC, Japan’s leading EPC contractor, we are using their established network of relationships with major refiners, power companies and shippers to progress discussions on developing MSAR® projects. These discussions have been progressing positively over the last year and we look forward to being able to develop a number of these into active projects in due course. It takes time to establish trust and understanding in the Japanese market and we have made solid progress with JGC’s help through regular engagement in the region.

We are unable to give specific guidance on projects at the moment but will provide updates at the earliest possible opportunity.
How does the CMPDA agreement with Freepoint differ from the previous MoU? Does it actually move QFI closer to commercial revenues?
It is a very significant development as it is a binding contract that provides a clearly defined structure for Quadrise and Freepoint to work together to progress MSAR® projects to long-term commercial agreements.
How is Freepoint going to promote and sell MSAR technology across its markets in production, supply and consumption?
Freepoint is an established global merchant of physical commodities and a financer of upper and mid-stream commodity producing assets. This provides significant opportunities for Quadrise to work in collaboration with Freepoint to use our MSAR® technology to further enhance their returns in existing projects and to accelerate the development of our current projects, through the application of their financing and commodities merchanting capabilities.
How confident are you that QFI will progress during 2019?
Clearly, we have been in a difficult situation since the KSA discussions broke down, but we have been progressing alternative routes to commercial revenue and we believe that the Freepoint CMPDA may prove to be more significant than any agreement we have signed in the past.

We are in the middle of an open offer to raise fund to support the business through to October 2019 which, consistent with prior funding rounds, has been designed to provide existing shareholders with the ability to support the business at the current share price level. If fully subscribed, the company would hope to have made enough progress to substantiate further funding options and following the close of the open offer, the board will review a range of funding options which may be appropriate at that time.
You said that your preferred model with Freepoint is build, own and operate. Is this a change of strategy because of lessons learnt when trying to agree licensing type agreements with Maersk / KSA and is BOO realistic given QFI’s financial constraints?
Quadrise has always looked at the BOO model as the one which provided the highest potential returns to the Company, but acknowledged that this required significant capital and so would be something to be pursued at a later stage of development. However, with the relationship with Freepoint and their access to finance, there is an opportunity to develop projects on the BOO model at an earlier stage. In addition, BOO offers more control in delivering a project, and potentially higher returns for QFI shareholders. Whilst BOO projects develop we are, in parallel, looking at finance options, and the board has the project finance experience to draw upon to ensure the best outcome for Shareholders at that time.
Beyond KSA, where else are you targeting in the power market?
We are continuing to develop opportunities in the power sector in selected markets in the Middle East (in addition to KSA), Africa, the Americas and the Far East with the potential to supply from Europe for some projects.

This will include the work that we are undertaking with a European Oil Major to review opportunities for the use of our technology at one of their refineries. This includes paid-for testing of specific residues at QRF and joint development of potential power market consumers for the produced MSAR®.
What progress has there been in the marine market since Maersk ended the operational trial? Have you been speaking with other shipping operators?
As we have indicated before, we have been actively working to develop opportunities in the marine market. The shifting of attitudes towards the use of scrubbers in recent months provides a very positive outlook in the marine market for Quadrise. We are using these catalysts to accelerate our business development activities with refiners and fuel consumers in the marine market to progress MSAR® projects.

Our activities are focused on those marine operators of significant scale who have, or are actively considering the use of scrubbers and high sulphur fuel as their preferred compliance option for IMO 2020.
And what are the key concerns expressed by customers that have slowed or prevented them adopting MSAR?
We are working in very conservative industries – and the perception that emulsion fuels are new is the key barrier. Our work over many years to demonstrate the economic and environmental benefits of using MSAR® is gaining traction and we look forward to being able to progress this into active projects to deliver MSAR® on a commercial basis.
How much progress has been made in making MSAR available at globally significant bunkering locations?
As noted at the AGM, we are working on a number of project opportunities – some of which are located at, or near, major bunkering hubs globally.
Can you tell me what customers if any would be able to use marine MSAR now without any further trials being carried out?
This depends somewhat on the engine-type on the potential customer’s vessels and the clients wishes. There is more commercial operating experience on Wartsila 4-stroke and 2-stroke Flex engines than MAN-ME engines for instance, which may guide the scope of pathway for commercial implementation.
What is the status of the MMU at CEPSA?
The MMU at CEPSA is not operating now, and will be removed from the site during 2019 when convenient for both parties to do so.
The Company recently announced the appointment of a joint broker – what was the rationale for this?
The appointment of Stockdale is primarily aimed at broadening our engagement with the market and to provide additional analyst research. Peel Hunt and Stockdale work well together and have different client bases which should enable Quadrise to broaden and deepen its relationship with investors.
When the company updated the market in late March it said it would “be undertaking a strategic review to determine how best to deliver this value for shareholders and will provide an update, as appropriate, in due course”. What was the outcome of this?
The review that we undertook resulted in a new approach to business development with a larger number of smaller projects being pursued in several markets across power, marine, upstream and industrial/petrochemicals. This is being supplemented with activities co-ordinated with strategic partners
Freepoint and JGC, together with agents in selected geographies, all of whom who can accelerate penetration in key markets.
Has Quadrise looked into producing a compliant MSAR fuel?
When we were producing MSAR® for the LONO and Operational Trial at Cepsa, certain batches of MSAR® were 0.5% sulphur – based on the crudes being run at particular times, so we know that it is possible to produce compliant MSAR®.  There may be opportunities to offer this as an option, but we believe that there is more value in producing high sulphur MSAR® to maximise the value delivery for both Quadrise, the refiner and the consumer. 
With Saudi Arabia announcing a shift in their energy strategy in light of Vision 2030 – how does MSAR fit in?
As we have indicated throughout 2018, there is a significant value opportunity within KSA by substituting HFO with MSAR®. Whilst the longer-term vision is placing a higher emphasis on renewables, in the short term, HFO consumption and imports have increased significantly and seem likely to remain at high levels many years. Implementing MSAR® projects in KSA provides a low-cost, rapidly implemented solution that brings material economic and environmental advantages to the Kingdom, that can act as sustainable pathway to greater use of renewables in the future.
Given the share price decline over the past twelve months, has Quadrise become a takeover target?
For any public company, there is always the risk of an offer being made. However, the role of QFI’s management team is to deliver shareholder value through growth and the advancement of the Company’s active programmes leading to commercialisation and we remain focused on this.
Will Quadrise be adversely impacted by Brexit?
We do not believe there will have a significant long-term impact on our business. As the oil and product industry is US dollar denominated, it may increase revenues in British Sterling terms. As the chemicals and MMU’s are currently supplied from Europe their sterling costs may also rise, albeit to a lesser extent. Overall, we do not see a significant impact in the medium to long-term as any currency exposures can be hedged if required, and many of our costs are shared with our partners.
How is the company affected by fluctuations in oil price?
The economics of MSAR® are robust even when the oil price fluctuates. The value of QFI MSAR® technology is largely governed by the difference in price between HSFO and LSFO/GO. The impact of recent IMO policies that take effect January 2020 are expected to increase this price difference and hence the value of MSAR®, and the absolute oil price at that time is less important.