Quadrise Fuels (LON:QFI) shares shot up nearly 30 per cent in early deals as it signed a preliminary agreement to create a new venture to roll out its propriety fuel oil technology in Saudi Arabia.
The company is now formalising its relationship with Arabian conglomerate, the Rafid Group. It is expected that Rafid will have a 30 per cent interest in the venture.
"We are delighted to have concluded this agreement with Rafid. Their capabilities and reach have proved to be a very good fit with our expertise and technology,” said Quadrise chairman Ian Williams.
“Saudi Arabia is a key market with enormous business potential for Quadrise, especially as the Government seeks to optimise energy resources in the Kingdom. Rafid is a proven partner for the Saudi Aramco programme, and for the many other opportunities evident in this market."
MSAR is an oil-in-water emulsion fuel that can be used primarily in shipping, refining, and power generation. The MSAR process converts heavy oil residues into large volumes of emulsion fuels
And the first application of the MSAR process in Saudi Arabia is expected to be at a Saudi Aramco refinery, which produces 25 million barrels of fuel oil each year. This follows formal approval of the technology from Saudi Aramco.
Quadrise says the conversion of Saudi oil fuelled power generators to MSAR from local and imported fuel offers major economic benefits.
The company believes that MSAR fuels could displace the heavy fuel oil used in Saudi Arabia for power generation, seawater desalinisation and industrial plants.
At 8:20 on AIM Quadrise shares were up 1.5p, or 25.5 per cent, trading at 7.38p each.