Fuel oil technology firm Quadrise Fuels International said it had signed a non-binding memorandum of understanding with commodities trader Freepoint Commodities to provide commercial opportunities for its MSAR fuel technology product.
The Synthetic fuel developer said that this followed the effective end of a trial in Saudi Arabia for a combustion boiler project that would have used MSAR due to the lack of an agreement between the utilities involved. MSAR is a low viscosity oil in water emulsified synthetic HFO.
Freepoint, which is based in Stamford, Connecticut, is both an established global merchant of physical commodities and a financer of upper and mid-stream commodity-producing assets.
Freepoint also provides physical supply services and related structured solutions for counterparties located throughout the world.
Pursuant to the MOU, Quadrise and Freepoint intend to work together to pursue commercial arrangements involving the production and supply of MSAR fuel to producers and consumers by utilising Quadrise MSAR technology, additives and services coupled with Freepoint's marketing, trading, logistics and financial services capabilities.
Under the MOU, during the next 24 months the parties plan to jointly investigate and pursue selected MSAR project opportunities in the Americas, with a number of identified counterparties, and in Asia on an exclusive basis with the goal of entering into commercial agreements for MSAR production and supply arrangements with fuel producers and consumers.
Commenting on this development, Mike Kirk, Executive Chairman of QFI, said: "We are delighted to sign this MOU with Freepoint and are confident that with the combination of Quadrise's MSAR technology and fuel experience, and Freepoint's world-leading oil products trading and financing capabilities, we will be able to progress and accelerate selected MSAR® projects globally."