AKHG, chaired by Mubarak Al-Khafrah, is a private holding company established in 2008. It has a portfolio of 42 industrial companies employing around 45,000 people, with partners in the oil, gas and petrochemical sectors that include Air Liquide and Gulf Chemicals & Industrial Oils.
Quadrise has entered into a memorandum of agreement (MoA) with the Saudi investment group, with the two companies proposing to progress projects in Saudi Arabia that use Quadrise's MSAR fuel technology, with an initial focus on the use of MSAR fuel in boilers, an area in which Quadrise has previously experimented in Saudi Arabia.
When contract terms are finalised for the first installation in a major refinery for commercial supply of fuel to buyers in Saudi Arabia, Quadrise (QFI) and AKHG will form a joint venture (JV) company to advance all further business opportunities in the kingdom with AKHG holding an interest of up to 20%. Prior to the formation of the JV, QFI will pay AKHG a commission on sales to Saudi clients.
"We are delighted to have concluded this agreement with Al Khafrah. Their capabilities and established relationships within KSA [Kingdom of Saudi Arabia] have an excellent fit with our expertise and technology,” said Mike Kirk, the executive chairman of Quadrise.
“Saudi Arabia is a key market for QFI with significant business potential, especially as KSA seeks to optimise its energy resources and deliver immediate gains underpinning the Vision 2030 initiative.
“Under the MoA we see a clear pathway to completing the proof of concept project that was originally planned and the wider commercial adoption of MSAR to reduce energy costs," he added.
Saudi Arabia is planning to reduce its dependence on conventional oil and diversify its economy through the Vision 2030 programme.
Emad Al Shamma, the chief executive officer of Al Khafrah Holding Group, said the investment company has a systematic and established screening process it uses to select partners that could assist with the Vision 2030 programme, and Quadrise scored highly in all sectors.
“We are convinced that MSAR technology and fuel offers great economic and environmental benefits for KSA at large. The diligent work that Quadrise has carried out to date in KSA provides the platform that, together with the resources of the Al Khafrah Holding Group and our strategic initiatives in various sectors, should enable us to jointly secure commitments for the proof of concept trial and future commercial applications expediently to the benefit of Vision 2030 and KSA," he added.