RIYADH: Quadrise Fuels International (QFI) has entered into a Memorandum of Agreement (MOA) with the Al Khafrah Holding Group (AKHG), a company based in the Kingdom of Saudi Arabia (KSA).[the_ad id=”31605″]The MOA commits the parties to an exclusive relationship to progress and supply MSAR® projects for KSA. In addition, when contract terms are finalised for the first MSAR® installation in a major refinery for commercial supply of fuel to buyers in KSA, QFI and AKHG will form a joint venture company.
QFI is the supplier of MSAR® emulsion technology and fuels, a low-cost alternative to heavy fuel oil (one of the world’s largest fuel markets, comprising over 450 million tons per annum) in the global power generation, shipping, steam and refining industries.
This will progress all further business opportunities in KSA with AKHG holding an interest of up to 20%. Prior to the formation of the joint venture, Quadrise Fuels International (QFI) will pay Al Khafrah Holding Group (AKHG) a commission on sales to KSA clients.
Under the MOA, QFI and AKHG have agreed a plan for advancing their objectives in KSA that consists of 3 phases:
- Project scoping and delivery of a “Proof of Concept” boiler trial of MSAR® fuel in KSA initially by Quadrise.
- Commercial contracts by the JVCo for sale of MSAR® equipment, additives, technology licenses and related services to support KSA clients.
- Technology transfer projects by the JVCo for local production of equipment and/or additives compliant with the In-Kingdom Total Value Add (IKTVA) program to support KSA Vision 2030.
Commenting on this development, Mike Kirk, Executive Chairman of QFI, said: “We are delighted to have concluded this agreement with Al Khafrah. Their capabilities and established relationships within KSA have an excellent fit with our expertise and technology. We look forward to progressing the MSAR® KSA business with them.
Saudi Arabia is a key market for QFI with significant business potential, especially as KSA seeks to optimise its energy resources and deliver immediate gains underpinning the Vision 2030 initiative.
Under the MOA we see a clear pathway to completing the Proof of Concept project that was originally planned and the wider commercial adoption of MSAR® to reduce energy costs, in conjunction with exciting IKTVA projects to maximise local content to the benefit of KSA’s economy.”
Emad Al Shamma, Chief Executive Officer of Al Khafrah Holding Group, said: “We have a systematic and established screening process that looks at the merits of innovative industrialisation, proven technology, sustainable new ideas, maximised local content and fit with Vision 2030 for KSA. Quadrise scored highly in all sectors and we have been extremely impressed with our dialogue with the QFI team, where we have rapidly established shared values, common goals and well defined objectives between us.
“We are convinced that MSAR® technology and fuel offers great economic and environmental benefits for KSA at large. The diligent work that Quadrise has carried out to date in KSA provides the platform that, together with the resources of the Al Khafrah Holding Group and our strategic initiatives in various sectors, should enable us to jointly secure commitments for the Proof of Concept trial and future commercial applications expediently to the benefit of Vision 2030 and KSA.”