Launch of bioMSAR

15 December 2020

Quadrise Fuels International plc

("Quadrise", "QFI", the "Company" and together with its subsidiaries the "Group")

Launch of bioMSAR®

A low carbon alternative to heavy fuel oil

Further to the Company's announcement of 27 November 2020, Quadrise Fuels International, the licensor and supplier of MSAR® emulsion technology and fuels, a low-cost, cleaner alternative to heavy fuel oil ("HFO"), is pleased to confirm the launch of a new sustainable fuel product "bioMSAR®", enabled by successful research, development and innovation activities carried out by the Company during 2020.

bioMSAR® fuel highlights:

·    bioMSAR® is a synthetic alternative to HFO with significantly reduced greenhouse gas emissions.

·   bioMSAR® utilises MSAR® technology to combine renewable glycerol with water and refinery residues to produce an oil-in-water emulsified synthetic HFO.

·    The primary benefits of bioMSAR® over HFO are lower emissions, including 20-30% less carbon dioxide (CO₂), lower NOx and lower particulates.

·    Glycerol is a benign chemical that's colourless, odourless, water soluble, non-volatile and bio-degradable.

·     As a fuel, glycerol has excellent lubricity, it burns almost pollutant-free and is virtually carbon neutral.

·   bioMSAR® offers similar CO₂ emissions reductions as using LNG in place of HFO.  LNG however requires expensive cryogenic storage and liquefaction systems, with the potential risk of methane slip during use that materially impacts potential greenhouse gas reductions. bioMSAR® fuel utilises existing low-cost HFO infrastructure and systems, and does not contain methane.

·    Production of bioMSAR® utilises the same proven MSAR® technology that produces oil-in-water emulsion fuel oil to reduce energy costs for consumers and improve refinery profitability and yields.

·    bioMSAR® is fully compatible and interchangeable with conventional MSAR® fuel.

·    A new patent has been filed in the UK jointly with Quadrise's intellectual property partner Nouryon Surface Chemistry AB.

Having completed successful laboratory and pilot-scale testing of bioMSAR® Quadrise is now working with industry partners to test bioMSAR® in both diesel engine and combustion applications. Whilst remaining subject to subsequent larger scale studies, the Company considers that bioMSAR® has the ability to fundamentally  enhance the environmental and sustainability credentials of MSAR® and, in time, to increase the market opportunity for Quadrise.

The Company website has been updated with new content on our bioMSAR® fuel product (https://www.quadrisefuels.com), and further announcements will be made, as appropriate, in due course.  Spanish and Arabic language versions of the new bioMSAR® content from the launch will be available by the end of this month.

Jason Miles, Chief Executive Officer, commented:

"The development and launch of bioMSAR® is a real success story for the Company.  Having planned a roadmap for a sustainable fuel product earlier in the year, the innovative Quadrise team has made outstanding progress in bringing our glycerol-based biofuel from concept to market in such a short time, including the filing of a new joint patent application with Nouryon.

Our original target for bioMSAR® was a 10-20% reduction in CO₂ compared with heavy fuel oil, however 20-30% has been achieved already which compares favourably with LNG, albeit at a much lower cost for conversion.

The inherent stability of our water-based fuel technology lends itself well to future biofuel applications to provide a simple and sustainable pathway to decarbonisation.

We look forward to updating shareholders, as appropriate, on the results from planned engine and combustion testing of bioMSAR®, new fuel developments, and commercial discussions with stakeholders in the biofuel supply chain during the coming months".

For additional information, please contact:

Quadrise Fuels International plc                                                                             +44 (0)20 7031 7321

Mike Kirk, Chairman

Jason Miles, Chief Executive Officer

Cenkos Securities plc                                                                                                 +44 (0)20 7397 8900

Nominated Adviser

Ben Jeynes

Katy Birkin

Peel Hunt LLP                                                                                                              +44 (0)20 7418 8900

Joint Broker

Richard Crichton              

David McKeown

Shore Capital Stockbrokers Limited                                                                        +44 (0)20 7408 4090

Joint Broker

Toby Gibbs

Fiona Conroy

FTI Consulting                                                                                                             +44 (0)20 3727 1000

Public and Investor Relations

Ben Brewerton