Quadrise Fuels International Plc AIM:QFI the London-headquartered synthetic emulsion fuels developer has announced that it has extended its exclusive global collaboration and emulsifiers sales agreement with Nouryon, a global specialty chemicals leader owned by Carlyle Group and Singapore’s GIC, for the exclusive supply of goods, services and IP for future MSAR and bioMSAR projects.
As previously reported, Quadrise produces residual oil technology that provides lower cost and lower carbon alternatives to heavy fuel oil (HFO) through two primary products: MSAR and bioMSAR.
MSAR is a low viscosity oil-in-water emulsified synthetic HFO. It is manufactured using proprietary technology to mix heavy residual oils with small amounts of specialist chemicals and water to a bespoke formulation. The resulting emulsion contains approximately 30% water and less than 1% chemicals. The emulsion is a low viscosity liquid at room temperature, which makes it easier to handle and reduces the heating costs for storing, transportation and use in comparison to HFOs.
bioMSAR combines MSAR technology with renewable glycerine to produce a low carbon, environmentally friendly alternative to HFO and biofuels. As with MSAR, Quadrise’s proven proprietary technology is used to mix heavy residual oils and glycerine with small amounts of specialist chemicals and water to produce bioMSAR, a synthetic biofuel with lower emissions, including over 25% less carbon dioxide.
Important contract
It is an important contract, as previously reported the company’s share price has been near to an all-time low, partly due to Quadrise missing project milestones and moving them from one quarter to the next quarter for over a year, which has raised questions of credibility.
The extended contract will now run for a further three years to October 2025, with the same terms as announced on 8th October 2019.
Tom Fraine, an Industrials Analyst for ShoreCap, a broker that has Quadrise under coverage commented: We are encouraged to see the commitment of both parties to commercialising proprietary fuels and biofuels, which have the ability to significantly reduce both fuel costs and emissions.”
He continued: “bioMSAR and MSAR also make the transportation and handling of fuel easier versus conventional HFO and no significant adaptions to equipment are required for their usage. We believe the potential scale of Quadrise’s opportunities to add value to MSC, one of the largest shipping companies in the world, and its projects in Utah and Morocco, could each be worth considerably more than the company’s current enterprise value.”
Biofuels opportunities
Quadrise is currently involved in a project in the Heavy Sweet Oil Uinta basin project in Utah, working with partners Tomco and Valkor through Greenfield Energy in an oil sands development to create compliant biofuels. MSC is currently sea-trialling Quadrise’s bioMSAR and MSAR on sea-going tankers and is working with International Chemicals and Mining Group in Morocco on another biofuels opportunity.
Quadrise opened trading at 2.15p today (15th November 2022), up from close the previous day of 2.09p. The company has offered a year-to-date return of -15.3% and a one-year return of -37.1% with its shares ranging between 1.1p and 3.8p over a 52-week period, giving the company a market capitalisation of GBP29.3m.
Jason Miles, the company’s chief executive said in a statement this morning: “We are delighted to have extended our long-standing and successful collaboration with Nouryon for a further three years. This extension reinforces the commitment of both parties to commercialising Quadrise’s proprietary fuels and biofuels, providing more sustainable and economical solutions for the energy and marine sectors.”
