Quadrise Plc (QED) Earnings Call Transcript & Summary

Good morning, and welcome to the Quadrise Fuels International plc Interim Results Investor Presentation. [Operator Instructions] I'd now like to hand you over to Jason Miles, CEO. Good morning to you, sir.

Good morning, Alexandre. Good morning, ladies and gentlemen. Thank you for joining the Quadrise interims presentation today, an update. Obviously, there's quite a lot happening in the world. So I'll give you a little bit of an update in terms of what's happening in our world and what our plans are going into 2022. Today, I've got -- obviously, I'm joined also with -- I'm glad to be joined by -- with Andy Morrison, our new Chairman, who will be available for the Q&A afterwards. We've got about just under 70 pre-submitted questions already that we've prepared answers for. So we'll try and answer as many questions that come in today as well as, obviously, questions that are submitted as we go through. Just a quick formality slide. This is the slide we presented at the AGM, but still very much a theme that we continue and indeed, something that was picked up on, I believe, one of our [ BBI ] shareholders who picked up in terms of the comments, in terms of where we sit. Obviously, there's lots of talk about the green fuels, green methanol, green hydrogen, green ammonia. But something needs to get done today. And really, what we see with MSAR and bioMSAR is a pretty unique transition solution that can be deployed very, very quickly and improve immediately the emanations of CO2 and NOx, et cetera, as well as reduced fuel costs. Carbon intensity is ramping up and is important to the energy sector and the oil sectors that we work in. It's really being applied. If you look at the graph on the top left, this is from a recent Platts webinar that was done. But it's being applied to both upstream applications, which is obviously relevant to projects we're looking at, for instance, in Utah. But it's also relevant to the graph below is with respect to downstream applications as well where there's definitely a requirement for refineries to upgrade today and try and produce more diesel. But the problem is that when they do that and they invest in equipment to do that by way cokers or hydrocrackers, on the right-hand graph, you see what happens to the carbon intensity of that particular refinery. So MSAR offers an opportunity for that refinery to produce more diesel and less fuel oil, but without impacting its carbon intensity at all. So we believe that that's obviously an important feature and becoming quite a limiting factor for some of the refineries today in terms of hydrocracker and hydrotreating applications. That's important because if you look at the emissions on the use of marine fuels especially and fuel oil in general, about 15% to 20% of the CO2 burden from a well-to-wake to -- well-to-tank basis, is really from the extraction and the refining process. So if you can cut down on the amount of carbon that's created and the greenhouse gas emissions that are created when you actually get it to actual final use, then that's an important feature. So we are very focused on looking at obviously lower carbon fuels, but also existing fuels that have a lower carbon intensity. And again, that's for instance, the project in Utah is an example of that. In terms of the overall and how these marine fuels are being looked at now, there's an increasing focus on the full life cycle of these marine fuels. So well-to-wake is an important -- a very important way of looking at the classification of different types of fuels and also what's the implication over a longer time period. So well-to-wake today instantaneous, but also looking at a 20-year basis or a 100-year basis, that all influences, the grading of fuels, and that's having quite an impact as well in terms of how other fuels such as LNG are being evaluated. In terms of overall demand, how has it changed? Obviously, there's a lot of talk about decarbonization. But in reality, in terms of the fundamentals, there's still going to be a fairly consistent use of existing marine fuels, both high sulfur and low sulfur. This is obviously data that's come from a very reputable third party. But in terms of Platts, they see that up to 2040, there will be consistent demand for marine fuels. And also, what's happened, obviously, most recently through the impact of, I guess, moving out of COVID as demands recovered, oil prices and the spreads have increased over the last sort of 6 months since we spoke. And obviously, the impact of the recent Russian invasion of Ukraine. There's obviously spiked oil prices as well and reduced the availability of diesel such that the price difference between diesel and fuel oil has been higher than it has been since pretty much 2008. So that's obviously a helpful factor, an instantaneous thing at the moment for us in terms of looking at MSAR economics, but it's been progressively getting better since we had the AGM we now spoke. That has a big implication in terms of also the cost of fuel. These people are very, very mindful of that. Obviously, given the role of energy price cap as consumers have of energy internally on a personal basis, everyone is very mindful of the cost of fuel. But our customers are extremely mindful of that as well now. And anything that relates to improvements in fuel efficiency, it's something that's very, very important and something that not only Quadrise but people like Wärtsilä are sort of publishing in the press as well. So in terms of where we are with efficiency, the work we've done with diesel efficiency has really been focused around the testing that we've been doing on bioMSAR, both at Aquafuel, where we have a 4-stroke Cummins engine and also VTT where they have a 4-stroke Wärtsilä engine, which has been proven and tested on prior emulsion fuels such as our emulsion and also MSAR. So what we're seeing is we're seeing some quite dramatic potential improvements in efficiency when we do some minor changes to the engine. So what we've been doing at Aquafuel is looking at advancing the timing of the engine. That's really to simulate how the fuel might behave in a higher compression engine such as a 2-stroke. And what we found so far, and there's some further work planned in the coming quarter with Aquafuel to develop this work a little bit more and also to look at other fuels, but we look -- what we're seeing is that we can get much higher efficiency with a 4-stroke diesel engine but without getting vast increases in NOx. The problem with conventional fuels is if you advance ignition timing with conventional fuels, you end up with higher emissions, especially of NOx, above the guidelines and the limits that these engines are set for -- originally set up for. But you don't see that issue when you run bioMSAR. So we've seen some very good improvements in efficiency. We previously saw some good -- some excellent results with MSAR as well in terms of fuel efficiency. So a lot of work now is really focused on the application of an oil-in-water fuel in a 4-stroke engine, but also in a 2-stroke engine later in the year. So in terms of the work we're doing beyond the Aquafuel work that I mentioned before is, in advance of the planned 2-stroke testing with MSC on a vessel, we also are planning some other preparatory tests on an optical combustion chamber to look at how the fuel performs. I'm going to answer more questions on that after this presentation. And also then look the longer -- basically do a simulated wear test as well to compare how bioMSAR compared to the prior work we did on MSAR and conventional fuels. In terms of MSC, where we are is, that we are in the middle of contractual discussions with MSC where a proposal has been submitted to do the vessel trial. We've agreed with MSC and Wärtsilä that the vessel trial can be done without doing any stationary engine testing. So that's the breakthrough that we've had during the period. We've committed already to do the combustion chamber work and the wear test with Wärtsilä as well on the 2-stroke engine. So the -- basically, the trial proposal is under review, and we're looking to get that signed off in the coming weeks. And that will run on the Wärtsilä vessel on an electronically injected engine, the Flex engine, which is where we did similar to the same engine as we did before on the Wärtsilä and Maersk on MSAR. In terms of Utah, we're working -- obviously, we did some testing with the material that came from greenfield, from the Petroteq site. There's some further work that's ongoing at the moment looking at subsurface oil, which is the most interesting for us. And that's really -- that subsurface material is the material that we'll be utilizing when the drilling -- assuming the drilling goes well and the drilling is basically completed now, and they get their permits in the middle of the year. The intention is to agree supply of an MSAR unit with a view to then operate in that unit to start supplying local customers in Q4. So that work is ongoing. Valkor are involved in not only -- obviously, they have an interest in TOMCO, but they also have interest in a number of other opportunities there as well. So discussions are ongoing with Valkor in terms of deployment of MSAR and bioMSAR fuel production facilities in that part of the world for local supply. And that's a low sulfur oil that meets IMO standards. And in terms of Morocco, where we are is -- looking to conclude the agreement that we had previously. The agreement expired at the end of the year. So an addendum has been drafted and is in current negotiation with the clients of the new team there. The addendum covers then the trial in Site B, which is an industrial trial of about 60 tonnes of MSAR. We're also looking to do a follow-on test also with bioMSAR to get some data on our industrial application. And then the intention is almost, upon results of a successful trial, to initiate commercial discussions for commercial supply. And obviously, the high prices of fuel oil are helpful in pushing forward that particular agreement. And in the Americas, we're working with 2 agents in different parts of the Americas. So E&PC are really focusing on the Central America region. And we have discussions with a particular client that owns assets, both in Panama and in Honduras, on Wärtsilä 4-stroke engines, which we're well proven on MSAR fuel. So we're planning to do a test with one of the clients there, looking to conclude agreements for a particular test on a 4-stroke engine, and that will lead to then potential demand for MSAR and in the future, potentially buy MSAR. And then in Mexico, with Redliner, the opportunity is really focusing around the national oil company there. We've received all the data that we needed finally to do the economic and technical review of their particular refineries. Two of their largest refineries are in scope for production at MSAR and we are putting together a trial proposal for one of those refineries to look at an in refinery trial, which would basically displace refinery fuel ultimately with MSAR. So that will be supplying one of the boilers in the refinery. And one of the largest refineries there basically produces about -- sorry, consumes around 8,000 barrels a day of fuel oil. So there's a good opportunity internally within that refinery and, obviously, that's being progressed in Mexico. And at the same time, in parallel, we're sort of lobbying at a political level to make sure that MSAR is part of the political discussions as well. So we get some political pressure on the NOC to get things moving. So this is a summary of what we plan to do. We are putting pressure on ourselves to get these various agreements signed off in the coming months. So what we're looking to do is, by the end of April, look to conclude all of these -- the 3 main agreements that we've got in terms of MSC, Utah and Morocco and bring those 2 ahead. And then we also carry out the strategic review of where we want to be as well. So we're putting a bit of pressure on ourselves internally to get everything done within a month's time. And the green arrows really signify where we believe we'll start to get commercial revenue. So the first commercial revenue project that we see to come from Utah, obviously, subject to agreements being signed in due course. So the first source of revenue that we see will be coming from Utah and then Morocco will follow. Obviously, MSC is a little bit longer term because you need to go through -- you need to prepare for the trial, supply the equipment, that takes time. So we'll be up and running by the end of the year. The trial itself will take about 8 months to do. And then about the halfway point in that trial at 2,000 hours is where we believe that we'll have commercial discussions. The agreement we have with MSC will be for the trial, but it will be also covering a commercial framework on top of that in terms of the overall rollout of bioMSAR upon success. So that's taking a little bit time to finalize. Obviously, there are certain things that we can't control. We're not using excuses. This is an excuse. But the reality is that there's been quite a turbulent of time to get things done, but many things are working in our favor, especially the higher oil price and the spreads. So in terms of where we are in people, obviously, we had Phil Hill starting as our COO at the beginning of the year, and Andy's very kindly stepped in as Chairman beginning of February, and both of those guys have hit the ground running, and the rest of the team are unchanged, both with our consultants. So we're fully equipped with the people that we need to get things done. In terms of cash, we have about GBP 5.6 million cash reserves at the end of the year. So that allows us totally to get to revenue generation and at the current cash burn rate of about GBP 240,000 a month if we -- excluding any discretionary project costs on top and that's enough cash to take us through to the second half of -- or near the end of 2023. Obviously, there are tax losses available to displace against future profits but if we -- once we get to the revenue generation phase, which we plan to do. So that's the summary of where we are. We certainly see that MSAR and bioMSAR have a place in the energy transition space. But really for us now, it's important to get -- we've got a great technology. It needs to start generating revenue. And that's really our focus now is to get into revenue generation, as we said we would at the AGM, and we're saying again now. We know we need to get this -- our technology out there and operating and generating money so that shareholders can get some returns on their investment. And that's the end of our presentation, and I'd be delighted to take some of your questions from that have come in already.

[Operator Instructions] But just while Jason takes a few moments to review those questions submitted today, I'd like to remind you a recording of this presentation along with a copy of the slides and the published Q&A can be accessed via your Invest dashboard. As Jason mentioned, we received a number of pre-submitted question and we have also received a number of questions throughout today's presentation. And thank you to all the investors for submitting those. Jason, if I could just ask you to read out those questions and give response to where it's appropriate to do so, that would be great. And then I'll pick up from you at the end.

Yes. Okay. Let's pick some out. Some of them are quite long. So there's a question from [ Mark Skinner ], I believe Mark, anyway, around -- there's increasing energy crisis unfolding across Europe due to reliance on Russia on fossil fuel, in particular, this is causing a shortfall in diesel fuel. Russia supplies is over 60% of Europe's supply. QFI has an immediate solution to this crisis with MSAR, why refiners and end users not queuing at the door for MSAR? Why are we so unable to achieve commercialization of MSAR even now? Are there any shortcomings in the MSAR application we're not being told about? Really to answer the question there for Mark, I mean the key thing for us is to secure a customer. It's not just the production of MSAR. The question is then where is it going to go? So really, the focus is on getting various things aligned in terms of getting trials done so that there's a definite customer for MSAR fuel. So in the case, for instance, for Morocco, once we complete the trial at the end of Site B by the end of this coming quarter, then we should be in a position, then we've got a customer that wants the fuel. We've got a quantity that we know that they will need, and then that's the discussion we can have with the refinery. So the refineries are definitely there and interested, but we need to demonstrate that there's actually somebody going to be there with a buy order, and that's what we're looking to do is to focus on the clients and the end users, similarly doing the same thing in Panama as well and Honduras, obviously. So the shortcomings are really getting up and running and doing -- getting these projects working. So the first revenue generation, the first unit is extremely important to get that moving, and that's really our main focus. What else have we got here. This one from Jeremy. Have QFI explored the idea of securing a champion with a high profile and a wide audience to external commercial environmental center of adopting MSAR as an interim fuel? This could be a paid appointment. This does not need to be an individual. It could be an organization such as Institute of Economic Affairs who have been in the media recently pushing for development of interim fuels to bridge and ease the gap with net-zero to net-zero solution -- renewables, rather. What discussions avenues of the company considered along these lines? Yes, I mean we are in discussions -- we have been in discussions potentially with government entities. I guess there's a quite strong lobby group in the gas sector, in the LNG sector, so when people talk about transition fuels and interim fuels, some people really are using that to steer the discussion back to gas and methane and LNG. So there's -- for us to get our piece in or our -- we're still working on that at the moment, but it's a lot easier once we've got a project up and running, and we can essentially get somebody to do that. When we're in the place that we are now, or we haven't got a unit that we can actually point to, it makes it a little bit harder to do. And a lot of the government entities that are really focused on complete net zero solutions and not necessarily the transition space, that does now seem to be changing a little bit. But it's a good suggestion. What else have we got here? There's another from Jeremy. I previously issued the company with details on carbon tracker and published papers on cost emission levels and life cycle cost comparisons within gas, coal, renewables for government future. Energy strategies like in Japan. Carbon track is stated to me that they do report on the motion fuels comparison if they got paid. As far as I'm aware, this is not followed up by the company. Has consideration to having this type of independent assessment by credible organizations with the area of government, energy strategy is being considered? It has -- well, we did look at it before, Jeremy, but we'll certainly look at it again to see what we can get from that. I wouldn't rule it out. But I guess a lot of the work that we're doing, we have data for already, and we're working with very fairly credible organizations as well to get the message across. So -- But it's a good suggestion. The company has now been traded for 18 years. Currently, the company has no agreements, no trials, no contracts. But each update, milestones have just moved into the next quarter. Why is it all going so wrong? And how will you rectify this? Well, I guess in the presentation that you've just seen, we're setting some hard deadlines for the end of this particular month. So I think I like to [indiscernible] that for another month while we get these agreements across the line, and that's exactly what we're doing. Every single project that we've got is definitely on track and we need to get these turn into agreements. Quadrise is definition of the word imminent. Obviously, the energy sector works to different time scales. There's another one from Mark. Basically, what we're looking to do is, get these agreements signed by the end of this particular month and getting revenue in the second half of the year. That's our definition of imminent. There's one from [ Christopher Jason Miles ]. You say in the recent RNS, although you've been pursuing, I guess, around new projects and business opportunities this year, you've not been able to be met in agreements due to factors to be under direct control of the company. Can you please tell us what about -- what you can about these factors? I guess some of the factors around availability of resources, both with the clients and the OEMs in the case of MSC. Obviously, there's lots of other projects that they're working on. They've their current business to deal with as well, which is not straightforward at times, especially when there's a war going on or there's a pandemic to deal with and shortages in the supply chain. So some of our customers obviously had to deal with the day-to-day operations as well as a potential trial with our company. So I would say that that's not been easy. And some of our clients have also been dealing in a lockdown situation where they were working from home and not being on sites. So that's delayed them getting information for us. But the world is returning to normal and certainly we now have boots on the ground in different places to get these agreements across the line. This one from [ Vick A ]. Would you welcome shareholders lobbying our local NPEs to put the word out about MSAR and its derivatives in the current -- and its derivatives in the -- I think is this an ideal -- current ideal climate for our shareholders to do that. I think it is. But although what I would say is that the applications for MSAR and bioMSAR in the U.K. -- are probably not as great as in the U.K. as it would be in other parts of the world. So in terms of U.K. business, it will help certainly help Quadrise, but doing something near U.K., the scale of it will not be necessarily as good as it could be elsewhere. But there are certain projects that we're looking at in the U.K. So that wouldn't do any harm. And we do get -- we have seen, obviously, shareholders are already doing that. So thank you very much for that. One from [ Andrew P ]. The green time lines on commercial agreements are best case scenario as opposed to a balanced prediction. They are a balanced prediction, Andrew, to answer your question. But also they are -- they need to be demonstrated that that's going to take -- that's actually going to happen. So really, what we're looking to do now is get the agreement signed by the end of April, and that will then provide some certainty as to the green time lines as well. So that's work in progress. Andy, feel free to step in if there's anything you would like to answer specifically.

There was one question that was for me that was actually I answered online, but I could answer it in public as well. And it was about whether I have bought any shares yet. And if I haven't, why not effectively? And the answer is no, I haven't bought any shares yet. I do always get involved in companies that I'm Chairman of. And I will, in the future, I'm sure, buy shares. But there are -- as you'll appreciate, there are very limited periods when -- which are not closed periods for directors. And we've only just published the results. And as you've heard, Jason mentioned on a couple of occasions, that we are putting quite a bit of pressure on trying to get agreements by the end of April. So I would still consider myself in a close period at the moment. But absolutely, I think somebody in my position ought to be acquiring shares and when the time is appropriate, then I'm absolutely going to do that. So thanks for the question.

[ Chris from James C ]. You've explained the detail about the OEMs, ESG agenda and how that presents an obstacle to testing MSAR. Please explain to shareholders what MSC's position is towards MSAR so as of today, not January 2021 when the JVA was signed. So MSC's position with regards to MSAR is not changed. They would like to use MSAR. However, to use MSAR on their vessel, they need to do an engine test, and that's something where the OEMs and one of the OEMs specifically wasn't unable to provide that level of support because they were really focusing on green fuels and biofuel specifically was one of the components that they would look at. So that's why MSC switched the program to bioMSAR. That required us to do a lot of the testing that we had to do both with Aquafuel and also at VTT on the Wärtsilä engine. And as a result of that, we've got one of the OEMs now on board to run the bioMSAR test. So MSAR is very much on the agenda also for MSC, but the fastest entry point to get a test done is with bioMSAR, and that then, whatever we put on the vessel for bioMSAR, is also applicable to the trial MSAR as well commercial MSAR fuel. Question from [ Kevin D ]. For Utah to generate revenue in H2, we must have end users lined up. Is this correct? That's certainly the intention, Kevin. But yes, we've -- the work that's carrying -- that's happening this month during the next few weeks is to basically line up exactly those end users and determine what's required for them to actually start running on MSAR or bioMSAR. A question from [ Sean ]. Is there any reengagement with Lithuania? I would say yes, at the early stage, obviously, energy security is back on the agenda. They have built a brand new LNG terminal. But obviously, the cost of that imported LNG is going to be quite cumulative at the moment. So yes, we do believe that there's an opportunity in Lithuania to be worked on further. A question from [ Colin ] with regards to U.K. We're a U.K.-based company, why do we not have U.K. companies wanted to use MSAR or bioMSAR? That's really due to the emissions limits in Europe. The main use of, I guess, MSAR and bioMSAR would be -- it probably most likely be in the marine sector and on vessels that may or may not have scrubbers. So U.K. companies, there are some new U.K. companies, but not necessarily with a large modern fleet, new engines, et cetera. So the main companies that we're dealing with in the U.K. will be shipping companies that have got U.K. offices, but not necessarily power companies. What's the likelihood of QFI sourcing sufficient quantities of glycerol, should bioMSAR, LONO [indiscernible] and MSC, which to go commercial. And can you give an estimate of what that might be available in that scenario? It's difficult to say at this particular moment in time, James. But definitely, there's sufficient quantities of glycerol available, and we're talking crude glycerin here. We are in the process of having live discussions with biodiesel manufacturers who have -- who produce basically crude glycerin as a byproduct. So those discussions are ongoing. Each of those particular clients probably ultimately has enough glycerin to supply, sort of 3 to 10 vessels. And the type of engine tests we're doing, there's probably about 30 vessels or so in MSC's fleet that can run on, for instance, a Wärtsilä Flex engine. So that's the current estimate. And we're looking to line up supply and obviously, the refining of crude glycerin is an important component of that to get it from a crude glycerin, which has got impurities to get it to a fuel grade that we can use as well. But yes, for the immediate rollout during the next few years, there's enough glycerin available. But we're also doing a lot of work at the moment in QRF to look at alternative feedstocks, which can include existing biofuels as well, whereby the emulsification of it in an oil and water type system improves the performance of some of those existing biofuels and you get efficiency benefits, which you're obviously looking to demonstrate as well. So even though there is ultimately a limit on the availability of crude glycerin, there are other feedstocks that we're looking at in terms of biofuels feedstocks. Question from Andrew. Will we come back in 1 month to confirm if these hard deadlines have been achieved? Well, that's certainly what we're looking to try and get done by the end of this particular month. I think the plan is then to have an internal strategy review and then revert it to shareholders sometime in May in terms of where we are and where we want to be going forward.

Yes, just worth saying there, Jason, I think that anything important that we've got to say, obviously, will come out as an RNS first, and then we would look to engage shareholders in a forum like this afterwards.

There's a question from Adam C. One of the biggest flaws in Quadrise's approach to securing customer is selection, mainly picking huge companies that move a [ closer place ]. Why can't we secure a more nimble customer that has a desire and need to move quickly to benefit from MSAR? Well, certainly, the customers we're looking at in the Americas would meet that particular grade. But obviously, the proof of the pudding is actually getting that into a contractual fold. The projects that we're looking at in Utah as well are a different type of customer, I guess, and that's certainly where we believe that we can get a commercial agreement signed off earlier in the earliest phase to get into revenue generation. There was a question from [ Sherman ] with regards to meeting with the KSA representatives. That meeting was deferred to the beginning of this year and then we had a meeting planned last a few weeks ago when there was a delegation coming over to the U.K. where we plan to attend one of the seminars there. But unfortunately, that didn't happen. So there's been obviously -- the change is where the external factors come in. Sometimes the people and representatives that you're dealing with suddenly have to focus on dealing with energy crisis that are happening around us in terms of the Russian issue. So there's certainly a big market there in KSA, but the focus at the moment is getting the near-term projects across the line. A question from [ Malcolm ]. When MSAR and bioMSAR is the hot fuel that everybody wants, how quickly can supply be rolled out to all refineries and supply depots? I guess in terms of the equipment that we supply, all of these things can be done relatively quickly within sort of 6 months, which in energy terms is pretty fast. We have 2 units already that we can deploy. So we can be up and running with those units that we've got in place at 40-tonne an hour unit that we have. So those units are what we're looking to supply to the initial contract. So we get some return on our investment. And then bioMSAR production is really linked to then to the availability of glycerin and the refined new glycerin and that's what we're working on with the -- in terms of the biodiesel manufacturers. But obviously, from a refined -- oil refinery perspective, the economics are -- obviously we're in a good place at the moment. Mark has a question about the reengagement of the new Moroccan client team. It seems that this has moved in a positive direction since the previous update. Has our agent been effective? Yes, our agent has been effective. And yes, we are moving in a positive direction. There was a recent Morocco Now event that we also attended last week, which was very, very useful and well attended by a lot of different entities both in Morocco and obviously, U.K. companies and U.K. politicians as well. A question [ from Mark ] about who is the potential partner in Utah. We've heard [ red greenfield ], TOMCO, Valkor, heavy sweet oil, but it's unclear who. The main parties that we're dealing with are basically parties where we've had agreements with before, and that's basically Valkor. Initially, we had an MOU with Valkor and TOMCO basically through greenfield [indiscernible] involved with Valkor as well. What's the likelihood our agents in Mexico make the necessary political connections to progress MSAR trials? At the moment, they're doing a very, very good job in progressing things on our side. The delays have really been with the national oil company, sort of lack of supply of data, which we now have when we bought a full suite of data. So it did take some time to get the information that we needed, but we have got it. So now it's a question of putting something together. In Morocco, could you clarify the meeting is now taking place with the new C-suite. Is there any -- now a commitment amongst them to proceed? That's the agreement that we're looking to -- the addendum we're looking to get signed off at the moment. Yes, meetings are ongoing. We have meetings in -- basically planned also next week and the previous weeks we've had as well. So yes, the meetings are ongoing with the C-suite. It's their commitment. What will be -- the commitment is, we'll be with the group when the addendum is signed. At the moment, that's moving in the right direction. A question from Chris A. with regards to the OEM testing of bioMSAR. What is the linkage dependency between the testing and moving on to vessel trials? I guess the requirement for the -- I guess you're referring to the Wärtsilä test of the plan this year. I guess the main question mark around that we haven't tested yet is what happens when you're spraying -- we move from a 4-stroke engine and [indiscernible] to a 2-stroke engine when the cylinder is about 1 meter diameter potentially. There's a question, the key thing is the actual injection and spray of the fuel in that particular combustion chamber because the scale-up is extremely important of the fuel injection systems. So the work that's been done in the optical combustion chamber in Wärtsilä is to look at the spraying of bioMSAR compared with MSAR in a combustion chain because obviously MSAR was done before, so we can compare directly MSAR versus bioMSAR and see if there's much of a difference. And then look at the optimum injectors that can be used for the 2-stroke engine and the injectors are quite simple to change. The nozzles themselves are quite simple to change. So that's an area where, if you can get optimum spray and injection in a bigger 2-stroke engine, this is a test that you do. And it was done before with MSAR so it's a standard test, but it's a very, very useful exercise and gives you a lot of information in terms of the scale-up and make sure that the vessel trial, when it runs, it will be at the optimum settings it can be. The other test that's being done is a wear test, and that's really to look at -- this is a water-based or now water-glycerin-based fuel. So how is the wear of components affected by using the water and glycerin. We would expect the glycerin itself is a natural lubricant, so we expect that to work pretty effectively and certainly much better than just having water on its own. So we don't see any issues from that, but it's very, very useful to get the data because it's a one data point we haven't got any information for yet. So that's obviously important for longer-term operation of the large 2-stroke engine or any other engine for that matter on this particular type of fuel. So all extremely useful. But in terms of delaying the vessel trials, the plan is still to plan everything in parallel so that everything -- these tests will not delay the start of the vessel trial. They just feed information in to do the trial, which will be helpful in terms of optimizing injection and lubrication strategies, if needed. Question from Kevin D. Great that we're lining up agreements in April, but what's different this time around that makes you confident that April is achievable? Your question, Kevin. I think we were hoping to get a lot of these agreements done for the interims. We obviously haven't achieved that, which we're very disappointed about and we've set some very real deadlines now for ourselves to get it done. The agreements are in much better shape than they were before, and discussions are at the final phases for many of them. So that's certainly where we'd like to be. Whether we get all 3 across the line remains to be seen, but certainly, that's certainly the plan. Any other, Andy, that you've spotted that come in recently or you like continuing.

Yes, I think there's a few more that if you just keep scrolling down, I think this...

Okay, keep going. There's a question for [ Marcus ] in regards to the Wärtsilä testing. I think I probably answered that one already. There's a question from David. You mentioned boots on the ground, are there any Quadrise employees on foreign territory at the moment or likely to be in the immediate future? Today, no. Last week, yes. And next week, yes. So yes, we are very active, obviously, trying to get these contracts across the line. Question from Marcus. Again, the Utah inland markets, what are the main targets, industrial power, there are famously very large facilities like Kennecott smelting and refining that are large consumers of HFO. Yes, there are, Mark, and there also are some other clients as well that we're looking at who are running coal-fired power plants as well, where potentially you can use MSAR or bioMSAR as a reburn fuel to reduce NOx emissions. That's one of the applications as well, as well as a possibility some of the other possibilities in terms of diesel engine applications. But chemical is a good option as well. Another question from Mark, which is a good one, so I'll answer it. Is there a case to add a small amount of glycerin to standard MSAR for lubricity and anticorrosion? Yes, there is, Mark. Obviously, there's a cost implication of that, that needs to be balanced as well that we're looking at. But certainly, glycerin, a small amount of glycerin seems to do a lot of good in terms of the emulsification process as well. So that is definitely a good suggestion and something that we've already looked into. A question from Sean in terms of, are there any collaborations with [ Prime and ] Neste with regards to [indiscernible] oil developments? Not specifically with those 2 counterparties. But yes, with others. And a question from James. QFI in their various updates refer to intentions to carry out tests or trials. Do you accept that it matters hugely to shareholders whether these are intentions or these are QFI intentions or also include the relevant clients. QFI intentions are one thing, client customer intentions or the other. Shareholders need to know to whom these intentions belong. Yes, a very good point, James. The reality is that, obviously, we would not be carrying out these particular trials if the client did not want to do it. The intention is really cemented by the signature of an agreement between the 2 parties. So that's the most important selling point for us in terms -- for the client needs to sign that off. So ultimately, the intentions are signed up for the Managing Director. The Board responsible to carry out this particular trial in certain locations. So it's really at that point. But yes, we would not be progressing these particular projects if there was not an interest at the client's end. Otherwise, we're wasting our time. And final question from Adam, I believe. Jason has set the focus now getting a customer for MSAR. As we have haven't managed a senior customer in over 18 years, doesn't need to be in the mergence strategy meeting to change your approach because history shows it's not working. Well, Adam, if we can maybe return to that question in a month's time, we certainly plan to review the strategy of the company at the end of April anyway. And we look obviously looking to sign off 3 agreements before then. And obviously, they are related -- some of those relate to MSAR as well. So clearly, we need to demonstrate progress. We're definitely disappointed that we haven't been able to announce anything before the interims. And we're very, very focused on actually trying to get things moving forward so that we can get some positive progress out there to shareholders before the end of next month. And there's about 70 or so pre-submitted questions or there's a few more just come in. All right. So David B., there's a question in terms of Cepsa. Is it still a possibility for reduction in MSAR and bioMSAR? Yes, definitely. And who is responsible for finding end user clients for Utah? That's us together with the responsibles out there in terms of TOMCO and Valkor. And any ideas for MSAR for Panama or indeed Honduras will be sourced? Yes, we do have ideas for that in terms of local refineries. And could -- another one from Sean. Could Mexico act as a central hub for MSAR production in the wider region for those -- Could Mexico act as a central hub for MSAR production? Yes, it could.

Perfect. Jason, I think you actually managed to address all those questions from investors. Of course, the company will review other -- And the company will review all questions submitted today and we'll publish those response to those answered during the meeting and those pre-submitted on the Invest in the company platform. But just before redirecting investors to provide you with their feedback, because it's particularly important to the company. Jason, could I just ask you for a few closing comments.

Yes. Thank you very much for listening in today. The company is really excited about the next -- especially in the next 4 weeks. I'm very mindful that we need to deliver on getting some revenue in the second half of the year, and that's really our focus during the coming weeks. So we're looking forward to giving you some positive results.

From me as well, thanks to everyone for attending and for all your questions and obvious interest in the company. And as many of you have pointed out, the conditions, the time has never been better really for MSAR and bioMSAR. And so that's a really positive thing. We do -- and it's absolutely clear from what you said as shareholders, that you're questioning whether we're really going to deliver this time and believe in that. And it's absolutely clear that we need to bring these projects to a milestone point, and that's what we want to do. And Jason referred to that several times during the course of the seminar today and presentation today. And that's what we're very much focused on. So we do very much look forward to updating our shareholders as soon as we can after we finish our strategy work. So thanks again.

Jason, Andy, thank you for those closing comments, and thanks once again for updating investors today. [Operator Instructions] On behalf of the management team of Quadrise Fuels International plc, we'd like to thank you for attending today's presentation. That concludes today's session, and good morning to you all.