Fri 9 Jun 2017 06:49

Wartsila produces draft MSAR interim LONO: Quadrise


Letter of no objection in the process of being reviewed by Maersk, says emulsion technology firm.



Quadrise Fuels International plc, the emerging supplier of MSAR emulsion technology and fuel, announced Thursday that it has received confirmation that a draft interim letter of no objection (LONO) has been produced by Wartsila following the use of its engine during trials with MSAR, and that the LONO is in the process of being reviewed by Maersk.

Once the review by Maersk has been completed, QFI expects to then be provided with the final interim LONO to confirm that the fuel is safe and suitable for the Wartsila RT-Flex two-stroke engine.

"The Company's current expectation is that it will receive the interim LONO in June 2017," QFI noted.

Commenting on the news, Mike Kirk, executive chairman, said: "It is pleasing to be able to confirm that the interim LONO has been received by Maersk and will be available to QFI following Maersk's review. We look forward to being able to update shareholders upon receipt and to using it to actively support our business development activities in the marine market."

Last month, 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 on board its test vessel had 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.

Moving forwards, the world's biggest container line has publicly confirmed that it will be opting for fuels that comply with the upcoming 2020 global sulphur cap of 0.5 percent. MSAR fuel has so far been supplied with a sulphur content higher than 0.5 percent, and last month the emulsion technology firm reiterated 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".

However, QFI has not discounted the prospect of working with refiners or suppliers to produce a MSAR fuel 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.

Despite Maersk pulling out of trials with MSAR, QFI has stressed that the MSAR operational trial with Maersk has been "successful".

"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," Kirk remarked last month.

"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.

QFI also said in May that it was focusing its efforts on other operators for the commercialization of Marine MSAR, and that it would be using the interim LONO to further support these activities.


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