Quadrise Fuels International Plc [AIM:QED] the London-headquartered synthetic emulsion fuels developer, has carried the strong performance from the end of last year into 2024.
The AIM-listed company announced another partnership last week, signing a project development agreement with Dutch pyrolysis specialist, BTG Bioliquids and Euthenia Energy, a Spanish renewable energy development company, to investigate the use of BTL’s fast pyrolysis bio-oil process as a feedstock for Quadrise’s bioMSAR product.
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BioMSAR is Quadrise’s MSAR (multiphase superfine atomised residue fuel) with renewable biofuel elements like glycerin, and it is currently created by converting vegetable oils, animal fats, or other types of biomass into a stable, water-in-oil emulsion. The emulsion is then treated with a proprietary catalyst to create microspheres, which can be burned in existing diesel engines.
The fuel technology firm, as previously reported, has been testing bioMSAR in partnership with Wärtsilä Corporation [NASDAQ Helsinki:WRT1V], a Finnish company which manufactures and services power sources and other equipment in the marine and energy markets.
Game changing technology in the transition-to-net-zero
The BioMSAR technology can, arguably be a game-changer in the transition-to-net-zero story, as marine transport is responsible for a significant portion of global transportation emissions, although the exact contribution can vary depending on the time period and the methodology used to calculate emissions.
The tripartite agreement has been in the works since June 2023, since BTL and Quadrise entered into a joint development agreement to deliver a commercially-viable, net-zero biofuel by 2030 whilst also supporting decarbonisation of the marine, power, and heavy industry sectors. The partnership has seen positive outcomes since June, with stable formulations of bioMSAR incorporating BTL’s fast pyrolysis bio-oil being produced at Quadrise’s research headquarters, and on the back of this, Euthenia has joined the project, bringing experience developing, financing, and operating renewable energy projects and transition solutions for a low carbon economy. Euthenia already has active projects and operations in Europe, North America and the Caribbean.
The next stage of the project is to move to pilot testing and then a third-party commercial marine vessel engine trial. Euthenia will process ligno-cellulosic biomass feedstock at their facilities in Spain using BTL’s fast pyrolysis bio-oil and fractionation technologies, with the extracted sugars blended into Pyrolytic bioMSAR to provide sustainable marine fuel. The aim is to produce pyrolytic bioMSAR with a view to fuelling commercial shipping in the Mediterranean. A binding term sheet is expected to be finalised and signed within four months of signing the PDA to cover the larger diesel engine tests, the marine vessel trial and the future commercial relationships between the parties.
Jason Miles, Quadrise’s CEO said in a statement to the market: “Quadrise is pleased with the progress made with BTG Bioliquids to date, and we are delighted to be now working alongside Euthenia under this new tripartite agreement. Advanced biofuels derived from woody biomass are expected to be very price competitive net-zero feedstocks. Importantly, the extracted sugars are water-soluble and therefore particularly suited for use with our oil-in-water emulsion technology for shipping and industrial applications.”
Quadrise agreement with renewable biofuels supplier
Earlier this month, Quadrise also signed an agreement with Cargill, a major supplier of renewable biofuels, and MAC2 Solutions, part of Group Machiels, regarding the production of MSAR and bioMSAR fuels for the company’s forthcoming marine vessel trials. Under the agreement, trials will be carried out following the installation and commissioning of Quadrise equipment at the MAC2 facility in Antwerp, Belgium.
Cargill will be responsible for the supply of feedstocks, as well as for bunkering operations to supply MSAR and bioMSAR fuel, for the Trials. MAC2 will be responsible for the supply of jetty space, utilities, permits and ad-hoc support services during the Trials, whilst Quadrise will be responsible for the provision of MSAR and bioMSAR technology and fuel production equipment and personnel. If the trials go well, it is hope that Quadrise will start commercial supply to Cargill.
Tom Fraine, an analyst from Shore Capital that has Quadrise under coverage said: “We are encouraged to see another multinational company acknowledge Quadrise’s solutions for decarbonisation and commit to an agreement. This morning’s update follows the agreement announced earlier this month with Cargill, a major supplier of renewable biofuels, for the production of Quadrise’s fuels for marine vessel trials on the MSC Leandra. We believe Cargill is a very attractive partner for Quadrise, which could lead to future opportunities, given Cargill’s own fleet of [more than] 500 vessels and considerable scale in global markets.”
The AIM-listed company opened the week (19th February) at 2.219p and is 75.9% ahead of where it was trading a year ago. The company has a market cap of GBP34.4.
Fraine added: “We note that Quadrise’s fuels are more efficient and cheaper than fuels currently used, whilst being safer, simpler to use and generating fewer harmful emissions. CEOs of major shipping companies recently called for an end date to fossil-fuel only powered newbuild vessels and urged the IMO to create the regulatory conditions to accelerate the transition to green fuels at COP 28. We believe progress in making such regulatory changes could be highly supportive for Quadrise.”
