QIL and Maersk Sign Royalty Deal
QIL is a wholly owned subsidiary of Quadrise Fuels International (QFI) and holds all of the company's managed interests.
The royalty agreement is valid for the period up to December 31, 2019 and provides the legal framework for future commercial sales of Marine MSAR fuel to Maersk and third parties.
Commercial sales of Marine MSAR are contingent on the successful conclusion of the joint development programme with Maersk revealed by the company in March 2010. This programme includes marine engine tests on land and sea, third party verification and approvals, and conclusion of agreements with candidate oil refineries during 2011.
Ian Williams, executive chairman of QFI, said: â€œThis Royalty Agreement will be material to the Company in commercialising Marine MSAR fuel. 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.
â€œBunker fuel oil is a 150 million ton annual global market, nearly one third of the global heavy fuel oil market. Bunker fuel 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. This long-term agreement is another endorsement of the Quadrise management team, our alliance partner AkzoNobel, and MSAR technology.â€
Will the deal benefit the firms?
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