Shares of Quadrise Fuels International Plc (LON: QFI) exploded 58% higher after the firm announced the signing of a Joint Development Agreement (JDA) with MSC Shipmanagement Limited of Cyprus (“MSC”).
The agreement allows Quadrise to conduct an MSAR® Operational Trial MSC’s global fleet of commercial container vessels starting in 2021 with the potential for a full commercial launch if the trial is successful.
Quadrise will kick start the JDA by completing the initial activities including project initiation, definition, high-level scoping and feasibility activities (“Initial Activities”) of the overall Trial within three months.
The outcome of the initial activities will determine if the project proceeds to the next stage which is the definition of the project roadmap scheduled for Q2, 2021 as the two firms prepare to launch the first trials in H2, 2021 on representative commercial vessels in MSC's global fleet (“Phase 1”).
Once phase 1 is complete and the parties agree to move forward, phase 2 shall involve a full commercial rollout to MSC’s global fleet. The project is part of MSC’s efforts to decarbonise the global shipping industry.
Jason Miles, CEO of QFI, said:
“Quadrise is delighted to have signed this agreement with MSC and we look forward to working alongside them to progress this excellent opportunity. We believe that MSC's large modern fleet installed with electronic engines and, in some cases, exhaust gas cleaning systems (scrubbers) is well positioned to realise the economic and environmental benefits of MSAR® and bioMSARTM and we look forward to realising the project and getting the trials underway in 2021.”
Prabhat Jha, Group MD & CEO of MSC Shipmanagement Ltd, said:
“MSC is looking forward to working with the Quadrise team under the JDA in 2021 to scope out the operational trials of MSAR® on our container vessels. We are particularly interested in the potential environmental benefits of MSAR® and bioMSARTM that, alongside the economic benefits, reflect our approach to operating a modern MSC fleet, and fit well with our overall future fuels strategy.”
Quadrise Fuels share price
Quadrise Fuels shares surged 58.02% to trade at 3.35p having rallied from Tuesday’s closing price of 2.12p.