Quadrise Fuels International Plc AIM:QFI the London-headquartered synthetic emulsion fuels developer has today (25th November) published a trading update for its operations ahead of its AGM.
The company updated the markets on its ongoing operations to the end of June 2022.
In Morocco, Quadrise signed a new material transfer and cooperation agreement with its principal client. As previously reported the company is testing its products and its initial industrial demonstration test is now scheduled to be completed next month. Upon success, the parties will enter discussions for potential commercial supply, with a view to signing a fuel supply agreement in the first quarter of calendar year 2023.
The company is also collaborating with Mediterranean Shipping Company (MSC), the world’s largest container shipping company and in July 2022 as reported, Quadrise signed a Framework Agreement with MSC to carry out trials of its bioMSAR and MSAR product lines with a view to the commercial supply of one or both fuels to MSC’s global fleet.
Proof-of-concept
The company said that proof-of-concept tests are planned for 1H23, following which MSC will run Letter of No Objection trials starting with bioMSAR. Quadrise said discussions are now underway with third parties regarding the production of the fuel for the trials. With positive trial progression, Quadrise, MSC, and other key stakeholders expect to commence discussions for commercial supply to MSC’s fleet in 2H23.
Jason Miles, the company’s chief executive said in a statement this morning: “The pace of decarbonisation and the escalating price of energy is creating a significant opportunity to commercialise our innovative fuel and biofuel solutions, as they offer clients the ability to reduce energy costs and greenhouse gas emissions immediately to help them accelerate the transition to net-zero.”
In Utah, Quadrise is currently involved in a project in the Heavy Sweet Oil Uinta basin project with partners Tomco and Valkor Technologies through Greenfield Energy in an oil sands development to create compliant biofuels. ShoreCap, a broker that has Quadrise under coverage had previously commented: “[Quadrise’s] projects in Utah and Morocco, could each be worth considerably more than the company’s current enterprise value.”
Commercial development
In April, Quadrise entered into a commercial development agreement with Valkor to commercialise both MSAR and bioMSAR at its Uinta. The company is targeting a commercial agreement by the end of January for the licensed supply of a manufacturing unit to provide fuel for MSAR and bioMSAR trials as a precursor to commercial supply during 2023.
Miles said: “The company is entering a notably exciting period, with the progression of our core projects expected to deliver commercial revenues in the current financial year. Beyond these projects, we continue to invest and collaborate in research and development to enhance our intellectual property portfolio and advance our decarbonisation technologies to ultimately deliver net-zero carbon solutions by 2030.”
In terms of product development, Quadrise has been testing glycerine-based bioMSAR and its tests in relation to the MSC project have been successfully completed by Wärtsilä and affiliates at test facilities in Italy. The company said final test reports are expected before the end of 2022.Sugar oil
In September 2022, Quadrise signed a joint development agreement with Vertoro to investigate the use of their crude sugar oils as an alternative biofuel feedstock for bioMSAR. The company said: “RDI work continues on our bioMSAR Zero solution for 2030 at our QRF laboratories.”
Miles said: “During the period we have made substantial progress with each of our key projects, whilst also positioning ourselves to be one of the key decarbonisation solution providers in a rapidly changing global energy market.”
Quadrise opened trading at 2.75p today, up from close the previous day of 2.55p. The company has offered a year-to-date return of 1.15% and a one-year return of -3.3% with its shares ranging between 1.1p and 3.04p over a 52-week period, giving the company a market capitalisation of GBP35.9m.
Tom Fraine, an Industrials Analyst for ShoreCap commented: “We are encouraged to see the progress Quadrise has made and its reaffirmation that it expects commercial revenues in the current financial year. Quadrise’s proprietary fuels and biofuels have the ability to significantly reduce both fuel costs and emissions. [Its products] 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 uses.”
The company also published its Sustainability Report today.
