Mon 22 May 2017, 08:41 GMT

Wartsila MSAR fuel LONO expected in May: Quadrise


Quadrise says LONO from Wartsila will help support its business development activities.



Quadrise Fuels International plc (QFI), the emerging supplier of MSAR emulsion technology and fuel, announced on Friday that its has been advised by Maersk that Wartsila is expecting to deliver an interim letter of no objection (LONO) to Maersk for the use of MSAR by the end of May 2017, and that Maersk will then provide this to QFI.

"The company continues to work with Maersk to progress the release of Wartsila's interim inspection report and to clarify Maersk's previously confirmed intention to work collaboratively with QFI to progress the commercialisation of MSAR to the wider global marine industry," QFI said.

Earlier this month, on May 4, QFI confirmed that Maersk Line had formally notified QFI's supply partner Cepsa of its intention to let the operational trial agreement between the parties expire once the MSAR fuel currently on board its test vessel has been consumed. The use of MSAR alongside exhaust gas scrubbers will not be considered as an option for Maersk going forward, the shipping giant is said to have officially told Cepsa.

Despite the news, QFI stressed more than a fortnight ago that the MSAR operational trial with Maersk had been "successful" and that a positive interim inspection and LONO by Wartsila "should" confirm this.

Mike Kirk, Executive Chairman, said on Friday: "I am delighted that our strong relationship with Maersk has enabled us to progress this matter, despite their decision not to continue the trial. We look forward to receiving the Interim LONO and being able to use it to actively support our business development activities in the marine market."

"The company continues to work with Maersk to progress the release of Wartsila's interim inspection report and to clarify Maersk's previously confirmed intention to work collaboratively with QFI to progress the commercialisation of MSAR to the wider global marine industry," QFI added.

On the issue of industry demand for exhaust gas scrubber systems with MSAR fuel, which so far has been supplied with a sulphur content higher than 0.5 percent, the emulsion technology firm reitirated its belief that "the marine industry will ultimately acknowledge and adopt the use of exhaust gas scrubbers and high sulphur heavy fuel as the most economic compliance option for the International Maritime Organisation's 2020 sulphur limit environmental legislation and that Marine MSAR will enable operators to obtain additional economic and environmental advantages over the use of heavy fuel oil".

QFI added that it was focusing its efforts on other operators for the commercialization of Marine MSAR, and that it would be using the interim LONO, "when it becomes available", to further support these activities.

Previously, QFI has not discounted the prospect of working with refiners or suppliers to produce a Marine MSAR with a sulphur content lower than the 0.5 percent limit.

"This would be dependent on availability of low-sulphur residual streams and further work is being carried out to assess the viability of this solution," QFI noted in May.


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