Quadrise Plc (QED) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. Welcome to the Quadrise Fuels International plc Annual Results Investor Presentation. [Operator Instructions] Company may not be in a position to answer every question received during the meeting itself. However, the company will review all questions submitted today and may publish responses where it's appropriate to do so. These will be available via Investor Meet Company dashboard, and you'll be notified once these are ready for your review. I'd also like to remind you this presentation is being recorded. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Mike Kirk, Chairman; and Jason Miles, CEO of Quadrise Fuels International plc. Good afternoon.

Good afternoon, and good afternoon, everyone, and welcome to our update following our annual results, which we published on Monday. Jason is going to take you through the presentation. I'll come in at one particular point just in relation to my position and my role. And then we'll move on, as we do, to Q&A. And we've had a lot of questions already submitted, Jason, David and I have gone through, and those have all been answered and will be published immediately when we have concluded the meeting, probably publish early tomorrow morning. So if we do find that we've got lots of questions which are repeating, we may skip over those live questions that come in. But as always, we will do our best to answer every question that is put to us. But with that, I'm going to hand over to Jason to take you through the vast majority of the presentation. Thank you. Jason?

Thank you, Mike. And welcome today to our annual results presentation on IMC. Today, we're just going to take you through after the disclaimer, obviously, all of you know what we do. So we won't go into that in a lot of detail. If you need any more information, please feel free to obviously interrogate the website. But today, we're going to take you through an update of the business, where we are in terms of the various different projects, which is what we announced very recently, but we can obviously provide some color to that and answer any questions you might have in that regard. And then a little bit about resources, where we stand at the moment in terms of people and financially. And then a summary of the presentation and then the Q&A where, as Mike mentioned before, we tried to answer as many pre-submitted questions as possible, all of which are very relevant to today. But obviously, we have other questions coming in, which we'll try and do our best to answer as well. So without further ado, let's go straight into the business update. The first aspect is bioMSAR. As shareholders are aware, we launched this just under a year ago, about 10 months ago from now. So not that long ago, really. We've made leaps and bounds this year to getting the fuel tested and are trying to advance the commercialization of this particular product, which we're very excited about. The testing of Aquafuel obviously was earlier in the year, which was successful. That led then to the VTT testing, which happened a little bit later than we would have liked, but that was due to delays on their side in terms of their readiness. The testing was successful. We had very good results from that particular testing, especially with respect to confirming the CO2 reductions that we got but also the high efficiency that was achieved with bioMSAR, which replicated actually what we get with MSAR as well but obviously with the renewable component that we bring in through renewable glycerin that offers quite a significant reduction in CO2 emissions. So that's equivalent to much less than running on natural gas, especially if you take into account the potential for methane slip. So that work is done. We've got some pretty good emissions data, which is quite useful in terms of the relevance for other applications such as MSC, which we'll come on to. And then the plan is to carry out soon some further testing at Aquafuel, which is ongoing at the moment. That's started, and the results will come through from that particular testing during Q4. And we're also doing some work at the moment, just looking at variations on bioMSAR in terms of formulations with less and more glycerin to achieve a range of CO2 reductions according to the requirements of the client. So there's obviously a cost-benefit aspect of adjusting the glycerin component to meet CO2 guidelines and requirements for each client specifically. So we need to make sure that we have formulations ready and tested to cover a range of different applications. In terms of the -- obviously, what we've been doing behind the scenes, we made sure that we joined the UK Chamber of Shipping earlier in the year, and they introduced us to a program that they were running in terms of the future of shipping, Making Waves. So it was presented by Rob Bell. And the team were there at the launch of the -- that was launched at the start of London International Shipping Week with respect to the IMO, with respect to lots of different programs that are all part of the future of shipping. So we were delighted to be a part of that. And we've got a very good place and center spot pretty much in that particular video alongside some large companies, such as [ Barsele ], Lloyd's Register, Trafigura, et cetera. So we were delighted with that particular program to get the message out there. In terms of the future of bioMSAR, obviously, we have our conventional applications, but we're also looking as well at the use of bioMSAR in terms of the hybrid power generation opportunity. We're doing some further work that's part of the work that we're doing with Aquafuel. And this is really to potentially utilize the bioMSAR on small-scale generators, anything from 1 megawatts up to 100 megawatts in capacity. So that's a pretty exciting development that we're currently working on to look at where that's the most applicable application, which may fit with some of our existing opportunities and clients that we're working with, too. Obviously, one aspect of the supply of bioMSAR going forward, if we're moving to the commercial phase, which we are, is the supply of glycerin. So we've been talking with crude glycerin suppliers. We've been talking to people who operate glycerin refining units. So the -- in terms of the potential for tolling, toll conversion of crude glycerin to remove impurities and have it -- make sure it's available for fuel grade. And then the other aspect that we've been looking at is our own refining capability as well and what would we need to install to refine crude glycerin to fuel component. So we've been talking with the equipment suppliers there. And there are a number of different suppliers who can supply these units as packages. So that's another aspect where, as commercialization develops, we know how much it's going to cost to install the equipment and operate it as well. So we can -- we're obviously building those numbers into the economics. The economics of bioMSAR are important. There's been a -- during the last 12 months, there has been a seismic shift in terms of biofuel pricing as well as the pricing of most of the other fuels, which is very well publicized. But in terms of biofuels, the cost of biofuels has increased across the board. And we've been keeping a regular -- been tracking regular progress of how those -- how that pricing has developed. And the cost of glycerin relative to other biofuels per unit energy has remained very competitive, so we think it's a very viable business for bioMSAR as we approach commercialization even with the biofuel prices spiking as they have due to various different supply and demand issues related to COVID, et cetera. In terms of outside of the conventional glycerin supply, there's the potential to produce glycerin from algae, and that's another area where we've been working together with the University of Greenwich. That's been a little bit delayed in commencing due to administrative delays, but that's up and running now funded by Algae-UK. Pat Harvey and her team are working through the stages of that particular plan to then develop the economics and refine the economics, specifically for the generation of fuel grade for MSAR supply along with other potential glycerin derivatives to enhance the [indiscernible] economics as well and feasibility of how easy that will be. In parallel, we're doing this, obviously, there's a lot of work that's ongoing at QRF looking at the existing projects, looking at bioMSAR. But in parallel, where we can, we're also starting to bring in other biofuel components, such as lignins and pyrolysis oils, and starting to test those in various different locations to see what quality works, what further extraction is needed, what components make the best sense for MSAR technology. So all of that work is ongoing in parallel. The most important thing I would stress in terms of this program is readiness for commercial supply, which potentially fits with some of our projects, other projects, which we'll now talk about. And just to provide some context, this is a diagram or an extract that we're looking to put in our annual report and obviously, on social media, too. But just for 1 container ship, switching to bioMSAR, that's equivalent to taking 11,000 cars off the road. So it's quite a tangible reduction in CO2 that we're offering to our potential clients. Which comes on to MSC. MSC, obviously, a huge client, potential client for us, a large operator of container ships and also a cruise line and early adopters and users of biofuels. They've been public in the press in terms of their use of biofuels. Last year, they consumed about 850,000 tonnes of a biofuel blend in their container ships. So they're already early adopters of biofuels, and obviously, that's where -- that's been driving the requirement and the demand to bring bioMSAR forward in the test program to see how that fits there. There's been -- there have been some delays in getting the program underway, some of which is really driven by the requirement to bring bioMSAR into the program sooner rather than later without having any engine data to support that. So the VTT testing and the results were very important. They came through a little bit later than we had planned. And then there's been some time going backwards and forwards to explain to MSC the performance data that we've got from the VTT testing, how that differs in terms of our experience between the 4-stroke engine and the 2-stroke engine because the engines are quite different in terms of how they operate. So it's not a straight read across from a 4 stroke to a 2 stroke. And we've had to do quite a lot of data exchange to make sure that the client is comfortable that the performance of bioMSAR is representative and very similar to the performance MSAR. So those discussions are concluding during the coming weeks. And the plan is here in terms of the milestones is to conclude now the LONO agreements that we've obviously been discussing with shareholders for some time, conclude those agreements by the end of the year with a view to then getting ready for production of bioMSAR during the first half of the year and then essentially starting the LONO program in the second half of the year. And then as that LONO program develops, obviously, similar to what we've discussed before at the midway stage, that's the point where, providing everything works as we expect, and there's nothing to suspect that that's not been the case from all of the testing we've done so far, then that's the time to then start the commercial discussions with MSC in terms of wider-scale use of both bioMSAR, and it's important to stress that MSAR has not fallen off the radar either. It's just the priority is, obviously, in the renewable space at the moment in terms of every shipowner wants to have a renewable solution in their armory, and we think that bioMSAR is quite a unique solution for the marine space for the key adopters. And I think it's important also to stress, which I guess I haven't -- we haven't put on this slide, but it's important to stress that the work that we are doing in promoting bioMSAR is not going unnoticed. We [indiscernible] alongside some quite significant companies now, and we are getting approached by other clients as well who are interested in seeing what's going on, where we are. But obviously, momentum on the MSC project is extremely important to us. In terms of Utah, another project for us, which is an upstream supply opportunity with a view to various different applications that we're looking at, at the moment. There's been some considerable delays in getting a representative sample from the oilfield really due to commissioning issues at the Petroteq facility that was being operated at the time by Greenfield Energy, now wholly owned by TomCo together -- operated together with Valkor as well. So that took a bit of time to really iron out some of the kinks and actually operating that facility reliably and getting a representative sample of oil that we -- to our particular lab. So some of the shareholders may have seen the videos of the material coming out the drum. It worked extremely well in terms of how it processed in our -- in the labs to produce pilot-scale volumes of both MSAR and bioMSAR, which we then use for -- in our conventional testing programs, looking at the stability during storage, looking at stability during pumping and heating, et cetera. All of those tests were passed, both the bioMSAR and MSAR. And as a result, what we've concluded is that we don't need to do the fuel trial that was planned in terms of the production fuel trial. The focus now is actually on commercial supply. So during this quarter, both Greenfield and Quadrise are working together sort of side by side to find potential customers of bioMSAR and MSAR and look at a range of different applications, so ranging from CO2 injection where you may -- some of you may have read that TomCo are looking at in-situ production of oil and that can be brought onstream a lot earlier than the conventional oil sands application that requires a lot more equipment to process the oil sands. The downhole just requires literally drilling a well, obviously installing some equipment on the back end to clean up the oil as it comes out of the ground. But with CO2 injection, that can be quite rapidly brought onstream. So the current plan is that by the middle of the year, there should be volumes of oil available subject to, obviously, a number of things that need to be done at the TomCo end. But we are currently planning on an aggressive time scale to have customers in place and applications where we can utilize bioMSAR or MSAR as a means to get a higher value for the oil that's coming out of the ground. The current value of the oil is linked to WTI. But if we can supply as a low sulfur fuel and potentially get some carbon credits for bioMSAR, then that adds value overall to the project, and it provides commercial revenue for both companies at an earlier stage. So that's the main focus. I'm sure there'll be some questions in that regard, but that's where we are. And the next project is Morocco. This -- again, this particular project has been delayed really predominantly due to access due to COVID. It's been extremely difficult, a, to travel to Morocco; but more importantly, to get on site. The sites have been locked down to really maintain the efficacy of operations. So even some of the external management of our particular clients have not been able to access the sites and have all been working from home predominantly during 2021. So it's been a difficult time. There's been small windows where we have been able to go on site. So Bernard Johnston got on site earlier in the year to make sure that everything is ready and prepared and that our equipment would fit. We've actually taken on a little bit more scope as well on our site. So that's why you see pictures of burners and atomizers on the right-hand side. We've actually designed and built those atomizers and burners systems so that there's really -- there's no scope for error. We've taken it all on board ourselves that we're ready for the trial to take place. We've now got a green light to get on site finally. It's been a bit of a frustrating week for us, but we are where we are. And the equipment is being collected from the U.K. to send to Morocco. We're planning to manufacture the fuel at the moment in Europe and ship that down to Morocco. And the trial will take place in Q4, where a team of people will go down there and make sure everything works according to plans. We have about 60 tonnes, which is going to be utilized for a trial at Site B. That particular site is about 1/3 of the Morocco client's consumption. So it's a significant trial. And the equipment that we're sending down to that particular facility, it will also be utilized at then the next trial site, Site A, which is the main site, again, which is a sizable consumer. So between those 2 sites, we'll have over 2/3 of the consumption tested at the particular client site. And certainly during -- once we have the first trial underway, the discussions regarding commercial supply can commence. So that's our main focus. And finally, we have a green light to progress that, so we're looking forward to getting things done there. And finally, in the Americas, there's a range of different opportunities we're looking at. In Panama, we're looking at power generation opportunity with 2 of the main operators there who operate diesel-fired power plants. So that's progressing with regards to a potential trial for both MSAR and bioMSAR. They utilize fuel today for power generation. So there's an opportunity there for, obviously, an MSAR project or bioMSAR going forward. In Mexico, an NDA was signed during Q3 with the national oil company. So they're sharing information now in terms of the various different applications for the fuel and how the refineries today manufacture fuel oil and from what stream, so we can identify the priorities in terms of the refineries and the economics of each refinery as well to focus our efforts. But there's some very interesting opportunities there, which we're looking forward to closing out by the end of the year. And then Ecuador, there's been some changes at the national oil company level due to changes in the government, and we're reengaging there with the new management to develop the opportunity where we did a lot of work looking at the Esmeraldas refinery and the economics of supplying that and converting that to produce MSAR. So nothing's really changed there substantially, but obviously, the people that we've dealt with have moved on, and we need to educate the new people, which is ongoing. And then there are some other opportunities, which are all being developed by our agent, E&PC, in Honduras, El Salvador, Guatemala and also places like Nicaragua as well, all of whom are looking at using fuel oil. Obviously, the spike in gas prices has sort of provided some assistance, and people who were looking at LNG and gas are looking at -- still looking at alternatives, maintaining the status quo with fuel oil while they work out where gas is going to recover. So yes, we think we're in a good space. We are managing these projects really through our agents. So we're still speaking with obviously Redliner in Mexico. We have regular dialogue also with Freepoint Commodities in the various different projects that they're involved with, but especially Ecuador and also, obviously, our E&PC who are colleagues of -- former colleagues of mine from [ Petronas ] in Venezuela and very well situated in Panama and in Venezuela to assist us. So that covers the business elements of the update. And apologies if I raced through that. Was excited to get to the Q&A bit. So let's move on. In terms of the resources, you've obviously read that Mark Whittle sadly departed from us in September. He got offered a job he couldn't refuse at Greenergy, Head of Next-Gen Future Fuels. So it was quite hard for us to retain him. And he's going to work with some people who he used to work with as well, so he knew the team there. So unfortunately, he had to go, and that's -- we wish him all the best, and we're staying in good contact with him. But in terms of the recruitment process, that was kicked off as soon as he told us. Mark was great through to the end. He stayed in right to the end of his notice period pretty much and provided great support and also provided input to the recruitment process as well to find a successor. In his successor, who we can't reveal yet, but we've got a great replacement, someone who can really roll up their sleeves and hit the ground running, a similar character to Mark. So we definitely -- we've had a worthwhile -- it's been a very worthwhile process with some very good, high-caliber candidates that we had to vet out. So it was good to see the positive response we got in terms of that inquiry. I'll leave Mike maybe to go through his section and explain a little more.

Great. Thank you. And apologies, everyone. My broadband isn't working today, and I've got to do this on my -- with a link into my mobile. So I've been told by the IMC host that my video wasn't great, so I had to switch my camera off. I think if I can, I want to be really matter of fact about this that I've been working on a reduced basis for Quadrise actually since very early 2020. And we then had a progression process and a process in place with -- principally with Jason and with David that I was focused on PR and IR. David and Jason have gradually been picking up that. And that process is now effectively complete. And I believe and the organization believes now is the right time for a new non-exec Chairman to come in. I will be standing down after the AGM, don't formally leave the business until the end of the year. At that point, Laurie Mutch, who many of you will know, who's been a long-standing nonexecutive director of the business will stand in as interim Chair. And the process for the appointment of a new Chair has actually sort of commenced, and that will be migrated into an active search with a search consultant within the next week or so. So the first start of that part of that process in terms of identifying the sort of person that we're looking for has actually been commenced. We're then going to actually get that search active, and we would be expecting that, that person will be in place ideally sooner, but we say certainly within 6 months. But within that time period, Laurie will be standing in as Chair. But I think the most important thing is this will be an absolutely seamless transition because David and Jason have been picking up the reins on the areas that I was focusing on. And under Jason's leadership, we have got absolutely the right team in place to take this business through to sustainable commercial revenues. And I think I'll leave it at that. We can always come back, Jason, under Q&A on things. But back to you now just to go through the remainder.

Thanks, Mike. So in terms of the financial aspects of the business, essentially, as of the middle of the year, we had about GBP 7 million worth of cash available, which represents about 2.5 years of our fixed cost burn rate of about GBP 230,000 per month, a little bit less at the moment, and that excludes the projects. Our latest projections show that we will basically be providing -- basically in commercial revenue phased during the second half of next year from the key projects, predominantly obviously, Utah and Morocco but with a view to obviously small volumes coming in from MSC as well. And then positive cash flow forecast to commence during the first quarter of 2023. So a little bit behind where we said before due to the various delays in the projects, but we still have enough cash in the bank to essentially do what we need to do in our current plans without having to obviously raise any more money, which is obviously important. There may be acquisition opportunities and other things that come along, which may require us to look again, but at the moment, we have enough cash to do what we need to get done in our budget. So that's good. Obviously, we have cumulative tax losses, which are useful to offset against future profits. That would be a nice thing to have when we get there. And it's not stated on this particular slide, but we also have outstanding warrants that sit there, but most of them that are sitting there [ are worth ] 7.5p. So if we develop -- as we develop the projects and hopefully the share price appreciates, then there may be some income north of -- or up to GBP 2.5 million, which may be available from exercise of those warrants were people -- if people wish to do so. So that's another aspect of, obviously, the funding which is -- but we basically have the funds in place to do what we need to do. Obviously, there's been some delays, but that's offset by reduced costs as well on our side. So overall, the plan is to be in commercial revenue phase second half of the year, and obviously, cash neutral the year after. And that's really the summary. I think it's probably useful to sum up that it's been -- we've got some great products. We've brought bioMSAR to market extremely quickly. It's had a very good response. It's performing exactly as we expected, and that's pretty exceeded our expectations, if I'm honest, in terms of how it's been working so far and the various different tests we've done. So we have a broader pipeline of opportunities than we thought. We have the team in place that we brought some other people on board recently, junior engineers, obviously a replacement for the COO, some other junior people coming into the team as well. So we're very motivated to, on behalf of shareholders, to deliver the commercial phase now. And with obviously the new non-exec Chairman coming on board in due course, I think we'll have a very good platform to succeed during 2022. So that's pretty much it from our side. I think that would lead then into the Q&A.

Yes. Sorry, Mike, I was just going to say, just to remind the attendees, they can actually just continue to submit their questions, just while we have a few minutes because we've got a number of questions that have come through to review those. And also just a reminder that recording of the presentation and the accompanying slides and the Q&A can be accessed via your Investor Meet Company dashboard. I'd also like to remind everyone that your feedback is important to the company. And immediately after the presentation has ended, you will be redirected for the opportunity to provide that feedback in order that the team can better understand your views and expectations. And Mike, if I may, on that note, just hand back to you, perhaps to run through some of the Q&A. Thank you.

Yes. Great. Thank you very much. And just one thing. An error has been pointed out to me that I started answering a couple of questions and actually hadn't realized those just got sent back to the people that asked them. So I'm just going to pick a couple up that we know that we've covered anyway under the really comprehensive set of questions that we've got earlier. But [ Ian J ] asked about when were we announcing the COO. And I think Jason covered this, but just to confirm, it will be once that person has managed their exit and got a firm leaving date from them. We know absolutely what the drop dead date is on that because they're on 3 months' notice. But what we don't know is whether they'll be able to come out earlier than that. But as soon as we've got some confirmation on that, we'll be publishing something on our new COO, who we're really excited about. And [ Mark N ], you asked about when our Utah trials are expected to start. And again, my response was just we have confirmed actually that both ourselves Greenergy/TomCo, on the basis of the testing that we carried out at QRF, have agreed that there are no on-site testing now required. So we'll be moving straight to those discussions that Jason has outlined to progress to a commercial license agreement, but that will involve working with them to actually solve some of those issues about how do we then find buyers for those products. But that is something that we're actively talking to them about. And if I can, Jason, what I'm going to do is there's a couple here that [ Mark N ] has made one and actually a little further down, [ Janine ] has made one. And the essence of this is we never meet our time lines. And I think there's a couple of things I want to come back on. [ Janine ] has indicated, this is over a 15-year time scale. And I think -- I don't think that's actually right, [ Janine ]. Actually, the early stages in the development of the company, actually, the team did an absolutely amazing job on some of the projects in Lithuania when we were doing the work on the Maersk trials as well. And I think you can take away from today that where we've had absolute control, such as the work that we're doing on bioMSAR testing and development, we have met those time lines. And I'd say, in fact, we've actually accelerated those time lines really due to the excellent work that's been carried out under Jason's leadership on the sort of RDI side. But I think the other side of it is just to not hide behind this, but many other companies have been affected by the pandemic as well. And it is those issues, which I think have most adversely impacted us today. And it's really been a combination of a number of things that our clients are either not letting us on to sites, and in fact, for a number of clients, not letting any external people on to their sites. And then the other thing is, particularly in the marine sector that it is not only the work that they're looking to do with us that has actually impacted them but the whole issue of logistics and of the container shipping market has meant that they've had some real firefighting to do in terms of just maintaining their day-to-day operational capability. But if I can on that -- Jason, I don't know whether you can see that question on the top from [ Mark N ], which is number three, on the start of the MSC trial.

Why is the MSC trial moved? I think we explained that during the presentation. It's taken -- obviously, the switch to bioMSAR required the -- some results to be forthcoming from VTT. Those results were a little bit delayed in actually getting those back from VTT due to the commencement of the test and then actually them writing the report. And then we've had to explain for the relevance of that VTT testing to the 2-stroke engine that they operate today, and that's taking some time. There are some limitations in terms of their availability as well. They operate the biggest -- now the largest container shipping company in the world, and that's not been without its challenges, the ever given, through COVID and more recently, the supply chain issues that you've seen at various different ports. If you look into received goods from China, et cetera, things are taking a lot longer. So these are problems on a daily basis that these guys also have to deal with, and it's Quadrise is not always at the top of their list, unfortunately. As Mike mentioned, where the projects are in our control, we've delivered on track all the time and within budget. Where we have clients obviously have other things to do as well, that's sometimes where the timetable has slipped, and we don't necessarily get that right. But that's really the main difference in terms of our timing is due to the availability of our particular clients. And this has been quite an unprecedented period, I would say, during the last sort of 24 months to get things done. I think we've achieved pretty well in that context, but obviously, we can always do better.

Jason, just the one that's coming from [ Paul Amon ], Petroteq and the POSP. I think it's worth highlighting because I think there's a lot of misunderstanding out there about the issue of TomCo, Greenfield, Valkor, Petroteq. But I think just to sort of, I guess, reconfirm that we really don't see any value in working with Petroteq at this stage, people we wish to work with...

I think our main client has been Greenfield obviously, that they paid for the work that's being done as well. So we have obviously NDAs in place that we have to respect. And frankly, the main opportunity for us in the short term is with Greenfield and in the in-situ production, which will be available. Oil will be flowing subject to them raising finance and getting, obviously, the projects in place. But that will be flowing potentially in 2021. So that's an area where we get potentially an early application for bioMSAR. I think the larger scale -- or the -- larger scale, but the oil sands opportunities, they are sort of 18 months to 24 months down the line, require a larger investment in surface equipment, which will take longer to deliver. So our immediate focus is on the in-situ downhole applications in Utah. And Greenfield is obviously a client of ours. We've got a very good relationship with John Potter at TomCo, with Steven Byle at Valkor. Valkor, they're in the area and very active in terms of some of the activities that they're working on as well, including Petroteq. So I wouldn't say we've ruled out Petroteq. But we're focusing on early commercial revenue, early application for bioMSAR and MSAR to deliver early cash flow and early revenue for us. So the in-situ applications are the main focus at the moment.

Thanks, Jason. If I can, if I just -- [ Mark N ] said do you expect -- do you still expect continuous commercial revenue still to begin in H2 '21? If the answer is no, how did you get it so wrong? And I think [ Mark ], I think just to come back on some of the things that Jason has outlined there, we said now where that is. And I think importantly, it is still within our current funding capability, which is the most important thing. In terms of how did we get it so wrong, again, we're not trying to hide behind COVID, but actually, it's had a huge impact on our ability to deliver against some of these time lines. And I'll pick just a couple of those out. One is on Greenfield, we were supposed to be getting that sample from Greenfield at the back end of 2020. We didn't actually receive a suitable sample until August, September of this year, entirely outside of our control. And I guess the thing that we've, in a sense, brought back from that is that because of the way that we undertook that testing and the veracity of that work that we did at QRF, we've had to be able to, in a sense, recover some of that because we've now got a position where Greenfield don't need to see any in-situ testing. So we've taken away the need for that. But actually, there was nothing at all that we could do because an integral part of that project was getting some samples and getting that test done. So that is, we think, something that's entirely outside of our control. But where we are in control, we are absolutely focused on actually pushing these through as quickly as possible. And if I just very quickly take, [ Mark ], you're saying, why do we need a finance assistant when essentially we don't have revenues and there isn't much to do. That is, I think, a pretty gross simplification, [ Mark ]. There is still a lot of work that needs to be carried out. This is someone that's going to help David [indiscernible] in our department, do some of them much more mundane but still sort of high volume but low figures that are going through in the accounting treatment, plus actually assisting the team and actually doing some of the day-to-day background work in terms of arranging meetings and things like that. So it's a low value proposition in terms of the amount of time it's taking now even David, to do some of these things. We're going to get someone in on a relatively low wage to assist in that and assist the overall team in terms of just day-to-day office admin and things like that. So we absolutely think it's the right thing to be doing. And I would just reiterate that we do not spray shareholders' money around on things that we don't think are absolutely required for the business. We still remain very focused on reducing costs within the business. So I understand the rationale for the question, but please be assured, [ Mark ], we do absolutely take care of the funds that we've got from shareholders.

A question from [ Ian J ] in terms of what are we doing to obtain sufficient glycerin. Simple answer is that we're speaking to the main suppliers of crude glycerin in various different parts of the world. Obviously, it's a little bit selective in terms of the regions that we're looking at receiving that. We're also, I think I mentioned before, speaking with people who have -- operate glycerin refining units as well with a view to getting sort of toll manufacturer of glycerin. So that's our immediate focus. So that's what we're focusing at the moment. Sorry, just reading through the questions quickly.

There's one from [ Justin ], and again apologies, Jason, since I was just doing a bit of sort of admin on the questions. I didn't know whether you had answered the ones, the question on where we are on starting manufacturing for fuel in Morocco.

Why haven't we started manufacturing the fuel from Morocco? When's the go-point to start the fuel manufacturing? The go-point was when the client said, right, green light, we can come in, we can go on site. So as soon as we were giving that all clear, that's when we initiated the plans to make the fuel. So they are now underway. So during the coming weeks that we'll manufacture the fuel and ship it down to the site in Morocco. But there is no point manufacturing the fuel earlier in the year. It would have been sitting there potentially in ISO tanks in Morocco through the summer and racking up costs basically. Would have had to pay for it in advance and the cost of actually holding the ISO tanks is not insubstantial either. So it didn't make sense to make the fuel early and ship it down when potentially that may have been deferred for indefinitely.

If I just come on, [ James G ], you said this means you'll need another fundraiser as any delay will mean QFI depleted, and it takes 4, 6 months to probably fund raise. Again, [ James ], I think we've really firmly put forward the proposition we don't need further funding to get us through to sustainable commercial revenues. The only rationale for any further funding would be bringing on any projects over and above those which we've outlined to you today. And clearly, from our perspective, that would be great news if we're bringing other projects along as well. But just to be absolutely clear, the projects that we've outlined in terms of MSC, Morocco and Utah, we don't -- and bioMSAR testing and development, those are all fully funded as far as we are concerned. So we don't need to bring on new funding in order to progress the trials and the projects to commercial revenues that Jason has been outlining to you today.

Yes. Question from [ Justin ] basically saying, why is it easy to find a customer for Greenfield when we haven't managed to find a customer for the last 15 years? Yes, slightly interesting question there. I mean the reality is that what do we think MSC are. Therefore, they're a customer for MSAR and bioMSAR. That's why they are speaking with us. That's why in the past, we've had other clients that were interested in buying the fuel. So it's not that we haven't found the customers. They haven't necessarily -- we haven't necessarily delivered on the contracts, and that's really the main focus now is to deliver on the contracts and get commercial revenue and commercial business for the company. But it's not like we haven't had customers because we've had some very sizable companies very interested and that's why we're working with those companies now that we just presented.

And if I take one from [ James C ], Jason, and then just let you follow on. But [ James C ] says surely it makes more sense to start the MSAR LONO, whilst bioMSAR is being developed to a finished product. That's how we started off these discussions. And actually MSC wanted to take it forward with bioMSAR, and that isn't what is delaying things essentially. So we don't think it does make sense to do it that way. But -- and I think Jason has outlined the sort of the process that we are going through there with them. But we absolutely are taking a leap from the client on that. And maybe at the same time, Jason, there's a question there about how excited, committed are MSC. And maybe just make reference to how much they're already sort of spending on biofuels.

Yes, they've been extremely active in the biofuel market, one of the largest consumers of biofuels in the marine space. Sorrentoft I think was public in stating that they used 850,000 tonnes, which I think I mentioned in the presentation. So it's not that they're not interested and it's not that bioMSAR is uneconomic either because the numbers that we're looking at, there's definitely some cost advantages for MSC to progress with bioMSAR. So that's the main focus, but the proof of the pudding is obviously getting them across the line in terms of the progress in the LONO trial now. And that's our immediate focus. I'd say this. The interest is obviously in bioMSAR initially on the outside, but they're still consuming large amounts of fuel oil and very low-sulfur fuel oil, so high-sulfur fuel oil and very low-sulfur fuel oil as well. So MSAR could offer some interesting savings in that regard.

And [ James C ] has asked if the lack of the refiner for fuel supply factoring the lack of LONO signatures. And I think Jason can come on and maybe give a bit more background. But it's actually it's not. But the key thing for us in getting that engagement with the refiner is to get that LONO signature. So it's actually the other way around. Once we've got that LONO, we can actually really then push those discussions with refiners because we know we've got a client, and that's really what they're looking for to enable us to have that real engagement there.

What else do we have?

There's one right at the bottom, Jason, which we maybe just pick up on resourcing, from [ Eric C ], about necessary staff to work on feasibility study for Mexico given all the other projects.

Well, I mean, it's -- certainly, we have the necessary staff to do that, [ Eric ]. But in terms of the -- obviously, it's a paper exercise initially. So we have models that we use in in-house design to basically plug the numbers in and split out the economics of MSAR. The nature of the refinery applications that we look at are quite similar, so we have a cost database to put that all together. So although it sounds like a bespoke exercise, in reality, we have a lot of experience already in terms of turning around these types of studies at short notice, but obviously, it will be prioritized according to some of the other work that we're doing as well. So that may take a few weeks or months longer to do that if we're in the middle of, say, a trial in Morocco.

And Jason, there's a comment from [ Richard J. ] [indiscernible] the MSC trial [indiscernible].

We're talking at the moment about [ more than one ship ]. That's yet to be finalized, but the plan would be certainly to run the Wärtsilä Flex engine and potentially the MAN engine as well. There's also the opportunity to maybe look at the WinGD engine, which is the new variant of the Wärtsilä Flex since WinGD took Wärtsilä over. So that's another engine type that may be brought into the trial in the future. But at the moment, initially Wärtsilä then MAN and then potentially one of the others as well. I can see that, Mark. Greenergy.

Yes, yes.

Yes. I mean, Greenergy are actually already in the marine bunker market. So sorry...

Oh, Sorry.

You're deleting them before I can answer.

Yes.

But yes, I mean, Greenergy already in the marine bunker market. They're also in, importantly, manufacturing biodiesel. So they have the potential availability of crude glycerin. So yes, Greenergy are potentially an important counterparty. We'll be dealing with individuals within Greenergy, not necessarily Mark in that regard.

There's one from [ Ian J ] about who we see the main competition to marine bioMSAR, Jason.

Which one's that? Sorry, Mike.

[ Ian J ]. Who will be the main competition to -- what will be the main competition to marine bioMSAR?

Good question. I think -- well, the main competition to marine bioMSAR is the conventional biofuel blends in. So that would be what's been tested today is conventional -- generally sort of conventional high-sulfur or low-sulfur fuel oil, mostly high sulfur actually due to compatibility and then they're blending in different levels of FAME, so fatty acid methyl ester; or HVO, which is hydrotreated vegetable oil. They're blending different quantities of that to achieve CO2 reductions. So that's really our main competitor. What I would say that where we think we have a compelling edge and obviously, the important thing is actually in delivery of this, but where we have a compelling edge is that if you look at FAME and HVO, they also have applications in other sectors such as the transportation space, such as potentially also, I say transportation and road transportation, but also in the aviation sector as well. Both of those sectors have mandatory requirements for minimum quantities of those types of fuels in them. And they also have some heavy degrees of subsidy, which marine space doesn't have. So that means that those products will end up getting and are finding their way into other markets as well, whereas with glycerin, with glycerin, we believe that we have something relatively unique that can be addressed sort of directly for the marine space. And provided the cost of glycerin per unit energy, crude glycerin treated to fuel glycerin, is more -- is cheaper per unit energy than conventional biofuels, then we obviously have a compelling product that nobody else has as well.

If I just pick one out right at the bottom from Anthony O, and he's just very simply said his case. We don't believe it is, but it's not something that we think is appropriate for us to be spending any time on. I think we've been really clear over the last 12 months or so, any reengagement in the Middle East, we think, is going to be on the back of successfully delivering any of these projects that we're talking to you about in the marine, the industrial or the upstream market and have a very different conversation with them. So we don't believe it's dead, but we're not spending any real time actually progressing it at the moment. We would pick that up when we've actually got a successful commercial engagement and use that as a hook to reengage on a different level with the customers there.

As well from [ David D ] asking if the finalization of the LONO trial plans later this year would be [ RNS-able ] event. I think there's a couple of things that are happening in the interim. Obviously, we have the AGM coming up on the 26th of November. So hopefully, we can update on some positive progress in that regard then. But aligned with the finalization of the LONO plans, then we would need to get agreements in place with MSC and others, and they will definitely be definitely market sensitive and would be subject to an RNS release for sure.

And there's a question, Jason, regarding the sort of interplay between an MSAR LONO and a bioMSAR LONO. And would we need actually to repeat, I guess, for a completely new LONO if we went with a bioMSAR LONO [indiscernible] engine vessel. And again, maybe just worth highlighting what we -- what our thoughts are on that, but ultimately, of course, it's down to the OEM.

Yes, it is. From what we've seen so far, the performance of MSAR or bioMSAR in terms of its combustion is very similar to eventually MSAR. So we don't see any difference in that regard. Obviously, where there may be differences in terms of the lubrication of the engine and in terms of the lubricity of bioMSAR, it's actually better than conventional MSAR. So if there's any requirement to test MSAR and go through its own specific LONO, it would be around the area of lubrication. But having said that, we've got some very good experience already with MSAR over the best part of sort of 1,500 hours or so where the fuels work very effectively in the Flex engine. So -- and we've obviously got 150,000 hours in a 4-stroke engine as well. So the lubrication aspect is less of a concern on our side, but the engine manufacturers remain to be convinced, and that's one of the aspects of obviously, the follow-up calls, discussions that we have together with MSC.

There's one from [ Mark N ], Jason. Just how long will the Morocco industrial trial take to complete?

It's actually quite a fast trial. So once we have everything on site, our plans is to get -- spend a week, making sure that everything is ready to go and then a week for the testing, and then we should be complete for Site B at least. And a similar duration of trial for Site A as well. So there is just a question of Site A. It's more a question of the availability of the unit, making sure that that's available and then making sure we've got everything in place. But we've got the equipment to ship there already. So it's really just the modifications of the fuel system to tie that in and do the MSAR testing in Site A. So the tests themselves are quite quick. They're sort of a week duration as opposed to a 6-month LONO trial in the case of marine.

There's a couple that should now be at the sort of top, Jason, from [ Rob B ] regarding sort of trial agreements with bioMSAR. I think you've already answered where we're expecting to be on that, which is we're expecting to get those concluded before the end of this calendar year. But there's a comment that [ Rob B ] makes regarding finalizing trial plans in Q4 2021 before we secure the trial agreements in glycerin supply. And again, he's saying, is that a little bit cart before the horse. So I think maybe just a bit of background as to how we see that sort of process working, Jason.

Yes. In terms of committing to do a trial, the actual quantities required for those types of trials obviously can vary quite significantly. So in terms of trial volumes of glycerin, that's less of a concern. Obviously, we'll be looking at the commercial supply of glycerin, then align to that sort of according to -- depending on the user and the demand, that requires different levels of glycerin in terms of sort of the fuel grade. So that's something that's quite -- it's a little bit difficult to be specific on, but we can certainly commit to the trial in advance of then looking -- securing the requirements for commercial supply because the trial doesn't need that to actually provide that commitment because the volumes are much lower.

One from [ Richard J ], Jason, regarding new additives and how that's covered under current patents, et cetera, and plans for further patents.

Yes. In terms of new additives, we're actually using the existing additive package for MSAR. So that means actually the reality is that the MSAR patents that we have in place also cover, to some degree, BioMSAR as well, which is quite useful. So there's no new additives per se that we're using for bioMSAR at the moment. That's the beauty of the system, is that essentially we're using the existing package, which is working extremely well. In fact, we are able with bioMSAR to cut out one of the additives.

Jason, there's one from [ Sanjay H ] saying, if all goes to plan beyond these trials, what are the estimated targeted revenues, revenue forecast from each project by end of year '23, '24, given the opportunities? I think if you can bear with us, [ Sanjay ], what we'll do is we'll look at that, and we'll answer that when the answers are published.

Yes. And I think, well, obviously, we need some -- require some guidance for -- in terms of a [ broker note to support data ] as well.

Yes, yes. There's one from [ David B ], where he said did I hear that right, oil flowing in 2021. And I think that must have been in relation to what you were outlining, Jason, in terms of the plans with TomCo/Greenfield on their sort of early-stage sort of downhole development.

Yes. I mean that's to be confirmed by TomCo, not us, but we certainly believe that from what we've seen with other experience in upstream applications that provided the downhole application is a viable one, which it certainly would appear to be, that is just a case of drilling the well, injecting the CO2, essentially superheated steam are getting quite quick results in terms of oil flow. So that's certainly the timetable that we are working towards in terms of sort of getting that project underway.

And I think, [ James C ] said, can you explain what in-situ application means in relation to oil production from Utah? And again, I think that's hopefully explained what we're meaning by that, James.

Yes. It's literally downhole. It's drill a well, obviously, treat the oil as it comes out. But obviously, to get the oil to flow, you need CO2 and generally some level of steam injection as well, which will get it to flow. And that can be quite quick if it's done correctly with the right technology. and certainly, Valkor have that technology.

And one from [ Richard J ], which is an interesting one, Jason, saying any communication with Maersk. I guess just to put this in context, Jason is presenting at a green tech in shipping conference later this month and he's bookended between MSC and Maersk. So I think an interesting one about the profile, and Jason outlined this, the profile that we're starting to get from the work we did in Making Waves with the UK Chamber of Shipping. But there's been no specific communication with Maersk, and we are entirely focused on ensuring that we can deliver the work that we're seeking to do with MSC.

Absolutely, yes. And I think Maersk is going quite heavily down the methanol route. You can sort of understand why. But the heavy route's not without its complications. So MSC are promoting biofuels, and that's our clients, and we are definitely providing them the level of focus that they deserve.

And [ Richard -- ] there are a couple towards the bottom, Jason. But [ Richard's ], when will the Morocco client be revealed? And essentially, when they're comfortable, we do that. And there will come a point where it's clear that we have to do that. But at the minute, they wish to remain -- their name to remain confidential, and we've got to follow that. We're not hiding behind NDAs as people have said in the past. It's no benefit to us whatsoever, but it's also of no benefit to us to enter into an NDA with a client and then actually, in a sense, circumvent it and release their name because the only thing that we'll do is ensure that we probably don't do any business with that client again. So there are very good reasons for sort of holding behind that.

Yes. There's one from [ Nicolas K ] in terms of which MMU will be sent to Utah and when. Well, we basically had an MMU prepared and ready to be shipped to Utah for the 600-barrel trial, which was planned as part of the recent program. So the same MMU could be utilized for Utah during the middle of sort of 2021 if all goes according to plan.

And there's one from [ Mark ]. I don't know exactly which [ Mark ] this is given it's [ Mark with a CS ]. But just asking about what would commercial rollout in Morocco look like and how high up in the Moroccan company does the engagement in the entire project go, Jason.

So commercial rollout, I mean in terms of the scope of the application, it's sort of 1 MMU's worth, going to be phased in 1 piece of equipment at the time. it'd more likely be 1 site at a time, but it may be that we have to progressively convert each of the units over a staged process. But we certainly focus on 1 site at a time. The nature of the changes are relatively straightforward. It's certainly in Site B. So that's -- we'd be looking at application first, which will be 1/3 of their demand. And then look, obviously, then look at switching that to Site A as well as we progress. And there's another site that is sort of similar scale of utilization. So it will be -- but it will be phased whether we -- whether it's 1 or 3 units at the moment, it remains to be seen.

And one for...

Sorry. I didn't answer the how high up in the Moroccan company we can go. Yes, it's very extremely senior, basically the C-suite executives who we will be dealing with in terms of the company, so that's as high as it gets.

And there's one from [ Collin S ] just about the 5 million tonnes of glycerin. What's it being used for now, Jason?

The 5 million tonnes a year being used now, some of it's being used and upgraded for technical grade. Lots of different applications for glycerin in technical and pharmaceutical grade. Quite a bit of it is actually disposed of or sent to biodigesters. So it doesn't really have a fixed application. But yes, some of it does go to higher-value uses. Obviously, there's -- at the moment, there's quite a big demand for glycerin albeit the volumes are quite down as well, which is why the prices are quite high, and it's linked really with the production of biodiesel, which effectively the demand for biodiesel went down as the demand for transportation fuel went down doing COVID. So that's affected the value a bit of the biofuels. Again, that also sort of spiked in price recently. But as that recovers, obviously, we expect the price of all biofuels to come down and the availability of glycerin to come up. So there's a range of different applications for glycerin. I can -- maybe we can share some more information after the call. I won't go into that now.

[ Lionel T ], will the AGM be face to face? Well, it may well be face mask to face mask, [ Lionel ], but it will absolutely be in-person. And we're looking at how we can perhaps put something alongside that in terms of doing something with Investor Meet Company as well. But we will be absolutely making sure that, that is something where people -- our shareholders could come in and actually sit down and ask questions face to face with us. And we're really looking forward to that. [ Janine P ], you're just sort of saying about -- and another couple of questions just about how we're sort of shouting from the rooftops about the sort of opportunities with -- particularly with bioMSAR. And have we ever tried to get BBC or Sky to do a piece on MSAR? No, but actually, we think that the work that we did on Making Waves with the UK Chamber of Shipping alongside a whole host of really large organizations has demonstrated that we can really punch above our weight there. And we continue to look for ways in which we can get this story across. But of course, one of the things we're really looking for is to get this -- it's this B2B engagement that's really important to us. So you don't necessarily need that sort of a high-level, sort of broadcast coverage to do that. Do you get the engagement with the senior people in the industry? And we think we've absolutely got that, but we continue to work with our in-house and with our PR advisers to ensure that we're getting that message out as loud and clear as we can.

A question from [ James C ] about the NDA in Mexico. How significant is it with respect to client interest and political approval? It's obviously significant in terms of the client interest. You would not believe the hoops you have to go through to get an NDA completed with the national oil company in Mexico, which is why it took so long. We're dealing with the Head of the refining group within the national oil company. So that's a very significant engagement. In terms of the political engagement, I think as we progress, there's a very good fit. Obviously, we produced a white paper for the Americas, with Mexico and with Ecuador in mind. In terms of the political solution that it offers, we've been promoting that with both the -- potentially via the DTI and also senior members of the government and the Energy Ministry as well. We think there's a very good fit, but we do need to obviously progress with the refinery studies to demonstrate the significance and elevate that to a political level to accelerate the project.

Jason, there's one from [ Mark S ] as well just in terms of, do we think we should think of bioMSAR as a fuel technology platform there rather than as a product? I think maybe just to speak to that a little about how we I think the work that's been now commenced on things like lignin and pyrolysis oil, how we can actually tune that to deliver what the client wants in terms of cost and CO2 reduction.

Yes. I mean it's a fuel technology platform. It's I guess new. I guess the technology itself is still our MSAR technology. It's really the key thing is to multiply these types of products where you have 2 phases, 1 suspended in the other. So that's really the platform that we're utilizing and that may have applications with other biofuels to be obviously -- to be demonstrated. But yes, we do consider it as a technology platform rather than as a fuel. Obviously, that can be optimized.

And there's one from [ Richard B ], Jason, which I'll answer, albeit it's in your area, but I think it's quite a simple one. Just [ Rich ] is saying can we use MSAR and bioMSAR in old engines. And I think one of the issues for us is that we can't really use it in car and truck engines, albeit we're doing some work about using bioMSAR essentially in small high-speed diesel engines. But when we start looking at the engines that are used in the shipping industry, the really old engines tend to be mechanical timing and actually, those are much more problematical for us to look at in terms of how you adapt them for use for MSAR and bioMSAR.

Yes. I guess some of it also depends on how those engines are operated. One of the reasons that we're looking at I guess, the hybrid solution for diesel engines, especially the 4 strokes at higher speed is that they -- when you look at hybrid power plants, they tend to operate at a fixed speed of the engine or a limited range of speeds. And that -- essentially, what you can do is you can optimize that for the particular fuel in mind. So if you don't have to keep going up and down in speed, which is the main -- some of the main problems with the older engines is adapting the ignition to the speed of the engine, which is why you need electronic injection for the smaller -- for the bigger, slower engines, which is what we're doing for the marine space. But if you can operate in a hybrid mode, where you're running the generator at a fixed speed, then you can utilize some of the older engines and still meet very good emissions regulations and requirements. So that may be an area where you can extend the life of existing generators as an example.

One very briefly from [ Helen H ], are [indiscernible] still a potential supplier of MSAR, bioMSAR, Jason?

Yes, they are, absolutely. They're obviously well placed to supply Morocco in the future and also potentially MSC [indiscernible]. So that's definitely one of the potential clients that we speak to.

And there's one from [ Nicolas K ], which is does Maersk retain any royalty rights. And I think this is one where I'd say that we probably have a difference of opinion. We would say not. They may well say yes. But ultimately, at this stage, we need to actually start delivering commercial sales of MSAR, and then we can have a discussion about that further, and we'll be absolutely having a discussion about that. But it's not something that we're spending a lot of time and effort on. What we're spending our time and effort on is actually getting those MSAR agreements in place so that we are selling MSAR commercially, and then we can get into a discussion/ a disagreement with Maersk about our liabilities or otherwise there. We've got a pretty firm view that we don't have any liabilities to them. But I have to say that, that is probably not one that is shared by them at this stage.

A couple of questions about economics and fuel prices, one of which -- I'm trying to find the one on gas. One from [ Eric C ] in terms of will the gas/energy crisis possibly help QFI? HFO price and demand might increase as it replaces gas, but could it increase the HFO distillate spread, too? Yes, complicated at the moment. Obviously, what's happened is that there has been a spike in gas price due to a decline in availability. That has driven up the demand for high-sulfur fuel oil. So the price of high-sulfur fuel is extremely strong relative to normal times. So the crack spread for fuel refineries is quite at a low point. Having said that, if you look at the -- there's another question down below in terms of the economics of MSAR today from [ Mark with an S ]. Is it attractive? Yes, it is. I mean the distillate fuel oil spread in Rotterdam at the moment is over $200 a tonne. So those spreads -- those levels of spreads are now starting to diverge. Obviously, as gas comes back and fuel oil restores to some sort of level of normality, then those spreads will increase even further. And the distillate value will also increase as well as aviation and the transportation sector recovers. So there's quite a few things happening in the world at the moment. So it's all quite fluid. But at the moment, definitely MSAR is definitely economic.

And just a couple of questions that's coming. One, can we use -- have we approached the MoD regarding using MSAR in sort of naval fleet? And the other is, is this something that's applicable in the retail home heating market. I think on the second, we'd say probably absolutely not in terms of the huge logistical issues there and the fact that this is a product that has got a shelf life, and we actually addressed that in terms of the particular product specification that is there to deliver the shelf life that the customer wants. We don't think the retail home heating market is a viable one for us to look at. And I'd say that is the same for the U.K. MoD as well. It's not significant in scale compared to a -- an MSC or one of the big players in the bulker or tanker market. So not something that we'll be looking at. It's not something that -- isn't necessarily something that could come in later, but it's certainly not a focus for us at this point, however.

Yes. And they're bigger consumers really of marine diesel than they are of fuel oil as well. So it's not -- really our focus is in fuel markets as opposed to marine diesel. So I would say not on that basis.

There's one from [ Paul G ] just saying, Mike, what would you say to long-term strategy, concerned that both you and Mark have left at such a pivotal and critical time. It's due to commercialization not occurring at any time soon? Absolutely not, [ Paul ]. Mark left because he got an offer that was too good to turn down and to work with Greenergy. And we put a plan in place over 18 months ago for my progression within the business. That progression plan is now sort of essentially complete, and it's the right time for me, and it's the right time for the business for me to move on and for a new person to come in and work with Jason to lead this business into commercialization. So you shouldn't read anything into it whatsoever other than it's the right time for the business. And what you should be reading into it is this is a business that, despite this small scale, has got real strength and depth in the management team. And actually, that succession plan has been worked extremely well. So I hope that gives you and other shareholders comfort that they shouldn't be reading anything untoward into the departures of either myself or of Mark.

There's one of the questions with regards to the status of the various different projects on the slides and our general confidence levels should be all of the slides be green. I mean reason they're showing -- we're showing -- I guess, where we're not showing green and showing amber is because there's been a delay. I think we respect the fact that we said that things -- projects would be on track and delivered at a certain time. And that's not been the case. That hasn't been really anything that Quadrise could necessarily control. But from our perspective, they are amber because they're behind schedule and we're looking to doing everything we can to bring them back on schedule and getting essentially back to green and the commercial -- and provide commercial revenues for the company. But we are realistic with ourselves in terms of how -- the status of the projects. We are extremely confident that each of the projects that we've presented today will be delivered during timescales that we think are controllable on our side. But we still rely on the clients to obviously deliver on their side, too, and sometimes, that's where things get delayed. And that puts the status back to amber from our internal perspective.

And one from [ David D ], Jason. Where will fuel for the Morocco trial be producing? And maybe it's worth splitting that. But obviously, we're looking to do 2 trials, the industrial and the commercial. So maybe just flip both of those out, Jason.

Yes. I mean, we're producing at a site in Europe. We're not going to disclose where that is for confidentiality reasons. But that site is equipped to produce emulsified fuel, and we'll be sending other people to do that to assist in that particular process. It may be for the second trial that we can utilize our pilot unit that we have to actually produce the fuel in the U.K. as well as an alternative. So that's -- we're investing in a smaller-scale MSAR unit. That is about 1/10 of the scale of a commercial plant that enables us to do some production in QRF as well if we need to.

And again, just there's a couple of questions coming in about -- which Jason picked up on what's our optimism level. And I think I was asked last time, I can't remember if it was 9 or 9.5 out of 10. But actually, in essence, I don't think that makes very much difference, but I'm still -- absolutely have got that same level of confidence. I think the team has been doing an absolutely first-class job. We're in a really good position to continue that. And [ Richard B ] is how does the Board rate the risk of potential further slippage delay in commercial revenues. Something we clearly look at, and actually, one of the areas that gives us some comfort is that the funding that we received has actually given us that additional runway. And we've outlined today that whilst that commercial, sustainable commercial revenues and cash flow has pushed out, we're still within the amount that we've actually raised. So we don't need to go out and raise any more funds. And it's something we discuss on a fortnightly basis. We have a -- we don't have Board meetings every fortnight, but every fortnight, we have a sort of update with the nonexecutive directors where the executives give an update on our major project activities, and we discuss what we're going to be looking at in terms of any mitigating actions for any delays that are there and also, what we're doing in terms of potentially bringing some of those things forward. And indeed, some of that has been about discussing some of the actions that Jason has outlined in terms of how we've accelerated our bioMSAR testing and development during the course of 2021. So we remain very confident about that. But as a Board, we closely monitor the risks around that and take appropriate action when necessary.

I'm going to answer the question from [ Sanjay H ]. When can we expect Jason to smile? Remember, AGM '23, '24, except the pressures of walling down. [ Sanjay ], I mean, to answer your question, the performance of the company was heavily [indiscernible] on me. I stated a huge personal -- sort of my own personal professional reputation on the company, and I will smile when we have the first commercial contract and money flowing into the company. I do smile in front of clients, so maybe not so serious then. But the performance of the company falls very squarely on my shoulders and sometimes that can weigh me down a bit. So I will try and lighten up. But yes, I am taking this job extremely seriously. So -- but keep the questions coming.

Yes, a couple of people asking if I'm going to return my equity in QFI. Yes, absolutely. Unfortunately, it will mean that some of the options I have are no longer sort of accessible to me, but the existing shares, I will be retaining. And I think there are a couple that are coming in that are sort of variations on a theme now. And I think some of them are better left for us to actually answer, Jason, in terms of publishing on a written basis. So I don't know about you, but I think we're getting to the stage now where we can actually probably wrap things up. There might be another couple of very short ones that we can answer. But I think we can probably start wrapping this up now on the usual [indiscernible] that we absolutely go through these and answer all of them.

Mike, Jason, as usual, you've been hugely generous answering so many questions, and thank you for the attendees for submitting them today. We have had the pre-submitted questions. The team have gone through those, and we'll publish those along with the answers from today and any other questions that come through, of course, the company will review all of those. And as Mike said, we'll publish responses where appropriate to do so. And Jason, perhaps before just redirecting the attendees today to give you some feedback, I just ask you for a closing snapshot, please.

Yes. Thank you very much, again, for your participation today in the call. I hope it was very informative. We're extremely excited about what 2022 holds for the company and looking forward to seeing some of you guys -- all of you guys at the AGM in-person, and we can answer further questions, and hope we have a drink and a smile together.

That's fantastic. Mike, Jason, thank you again for updating investors today. Can I please ask investors not to close the session. You will now be automatically redirected with the opportunity to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete and it's greatly valued by the company. On behalf of the management team of Quadrise Fuels International plc, we'd like to thank you very much for attending today's presentation. That concludes today's session. Thank you very much, and good afternoon.

Thank you.