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Quadrise Fuels International plc - an emerging manufacturer and supplier of MSAR emulsion fuels - made a presentation to shareholders at its annual general meeting (AGM), held on Friday in London.

During the presentation, Quadrise said that 2017 had been a "challenging year", but also stressed that "demonstrable progress" had been made.

Difficulties this year included Maersk pulling out of the MSAR fuel trial; the protracted process of Wartsila's letter of no objection (LONO) and interim inspection report covering the use of MSAR fuel in its RT-flex two-stroke diesel engines; delays to the signing of commercial-scale trial agreements in Saudi Arabia; and the implementation of cost-cutting initiatives, including salary reductions.

Quadrise highlighted its key achievements in 2017 and defined its outlook for next year. The company said its Marine MSAR trial had "progressed well" and that it had received "positive operational feedback" from both Maersk and Wartsila.

Production of MSAR fuel at CEPSA's San Roque refinery had reached 6,000 barrels per day within nine months of sign-off and the plant moved to a two-shift production schedule in January - operating the MSAR Manufacturing Unit (MMU) on a 24-hour basis from early 2017 to supply larger batches.

In Saudi Arabia, meanwhile, Quadrise said preparations for a commercial-scale trial were "progressing with major stakeholders".

Quadrise also highlighted its recent deal with Japanese engineering contractor, JGC Corporation, in which JGC is to act as QFI's exclusive partner to work with prospective producers and consumers of MSAR in Japan, Colombia, Peru and elsewhere on a case-by-case basis to jointly develop commercial MSAR projects.

Regarding the commercialization of MSAR, Quadrise has reiterated throughout the year that it believes the marine industry will adopt the use of exhaust gas cleaning systems (EGCSs) in conjunction with high-sulphur heavy fuel as the most economic compliance option for the upcoming 0.5 percent global sulphur cap in 2020. MSAR fuel has so far been supplied with a sulphur content above 0.5 percent - meaning that it would need to be used with a scrubber from 2020 onwards.

During Friday's presentation, Quadrise mentioned that cruise and ferry operators were the leading adopters of EGCSs. It noted that Carnival, for example, had invested heavily on EGCSs for its ships. The cruise operator aims to deploy scrubbers on more than 85 vessels across its global fleet by 2020.

In its outlook for next year, Quadrise said it would look to "leverage" the MSAR marine trial to progress business deals with ship operators; that there was "substantial commercial opportunity" in the power and marine sectors; and that its partnership with JGC was a "catalyst for accelerated commercial development".

Quadrise also noted on Friday that all resolutions proposed at the AGM were passed.