Quadrise Fuels International plc (LON:QFI) has announced the execution of a phased Commercial Development Agreement with Valkor Technologies LLC headquartered in Park City, Utah, to commercialise Quadrise’s MSAR® and bioMSAR™ technology at Valkor’s projects in Utah state in the USA.
Under Phase 1 of the CDA, to be completed by 30 June 2022:
· Valkor will deliver a crude oil sample from a heavy oil asset in Utah in which they have an existing equity interest (the ‘Primary Project’) to Quadrise.
· Quadrise will perform analysis and testing on the sample to confirm that it is suitable to produce MSAR® and bioMSAR™.
· Quadrise and Valkor will together and in the same time frame:
o Negotiate supply agreements with identified target consumers of MSAR® and bioMSAR™ fuel to be produced by the Primary Project.
o Finalise the technical and operational requirements and commercial terms for license and supply of QFI technology.
Full commercial terms for an MSAR® and/or bioMSAR™ License and Supply Agreement at the Primary Project would then be concluded no later than October 2022.
Under Phase 2 of the CDA, following the conclusion of a License and Supply Agreement covering the Primary Project, Quadrise intends to grant Valkor exclusive terms over the deployment of QFI technology in the State of Utah. This is expected to take the form of further Licence and Supply Agreement(s) or Tolling Agreement(s) for projects on which QFI technology is proposed to be deployed.
Net profits generated under the License and Supply Agreement(s) or Tolling Agreement(s) are to be shared between Quadrise and Valkor, based on the respective contribution by each party to the deployment of QFI technology for each project.
Steven Byle, CEO of Valkor, added:
“We are delighted to work jointly with Quadrise to secure high value opportunities for our Utah heavy sweet oil projects, following the successful testing completed on oil sands samples from the pilot plant last year. The supply and licensing of MSAR® technology in Utah is conditional on securing the first opportunity for fuel supply and offtake, and we look forward to working closely with Quadrise during the coming months on this commercial opportunity.”
Jason Miles, CEO of Quadrise Fuels International, commented:
“The need for more economical and lower carbon industrial and marine fuels has never been more apparent. Quadrise is delighted to have executed this agreement and looks forward to working expeditiously with the Valkor team to conclude commercial agreements for supply of MSAR® and bioMSAR™ for identified projects.”
