Quadrise Fuels International Plc [LON:QED] the London-headquartered synthetic emulsion fuels developer has continued to make progress this year after a tough 2023, when its primary projects in Morocco and Utah seemed mired-down by operational and technical issues.
The company announced this morning (25th November) that it had secured a new partnership with Auramarine Oy, a Finnish marine fuel and auxiliary systems provider. The partnership will see Quadrise and Auramarine collaborate across their respective sales teams to market solutions to the marine industry that integrate both Auramarine and Quadrise’s products as a combined package. Quadrise noted that both companies are committed to developing innovative solutions to decarbonise the marine industry.
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Quadrise will provide its expertise in MSAR and bioMSAR fuels, and Auramarine will provide its expertise in designing and installing fuel supply systems, including Quadrise blend-on-board technology, for the conversion of marine vessels to Quadrise fuels. Quadrise’s management said that for the gross sales generated or finance raised under the new agreement, each party shall pay the other a commission.
Jason Miles, Quadrise’s chief executive said in a statement to the market: “We are delighted to sign this collaboration agreement with Auramarine, who have extensive experience and an enviable track record in the design, supply and servicing of fuel systems for conventional and future fuels. This collaboration is in line with our strategy of working with new channel partners to decarbonise shipping, adding the necessary expertise, network and resources of Auramarine in marine fuel systems to accelerate the implementation of MSAR and bioMSAR fuel conversions globally.”
A year of progress for Quadrise, but slower than desired
Quadrise also recently had its AGM and admitted that 2024 had been a year of progress, but at a slower pace than the company wanted. However, over the year, the company has progressed three of its projects towards commercialisation as well as entering new markets with projects in Panama and Southeast Asia.
Management highlights an increasingly favourable regulatory environment with governments around the world (yes, even the USA) looking at decarbonising their energy mix, with transportation a key leg of the strategy.
As previously reported Quadrise securing a supply agreement with Cargill, one of the world’s biggest private companies, was a significant feather in the company’s cap. The inclusion of long-standing collaborator, MSC (Mediterranean Shipping Company), the world’s largest container shipping company, in the tripartite agreement has set Quadrise on firm-footing, and the fuel producer hopes that all the paperwork for the agreement will be finalised by the end of the year.
The company is also making progress in the industrial market, securing a commercial framework agreement with OCP in May ahead of a 30-day trial of Quadrise’s fuels at the Jorf Lasfar testing site in Morocco, which according to the company is ready-to-go awaiting greenlighting from the client. Morocco was a bugbear for Quadrise in 2023 with numerous technical issues, but that seems to be in the past for the company.
Quadrise’s Utah project in partnership with Valkor made progress in June once regulatory hurdles from the State of Utah’s Board of Oil, Gas and Mining were cleared and financing for a multi-well drilling project were secured by Valkor. Subsequently, said Quadrise, Valkor has produced its first barrels of oil from drilling and is ready to ship them to Quadrise for analysis and formulation optimising testing. Additional wells are expected to be completed by the end of the year, which when drilled will increase production to 100 barrels-a-day.
Quadrise is expecting USD1m from Valkor (should the driller manage to raise at least USD15m in project finance) under the site licence and supply agreement, with a further GBP500,000 once Quadrise has delivered its multifuel manufacturing unit at the project site in Utah. Quadrise’s management said that Valkor has informed it that it is confident of raising the requisite project financing.
New markets, new opportunities for Quadrise
The new projects that Quadrise took on this year included a collaboration with an oil refinery operator in Southeast Asia, which is considering using MSAR for internal heat generation, and a partnership with power generator, Sparkle Power in Panama for a commercial test of MSAR and BioMSAR fuels. A formal agreement from Panama is expected in 1Q25.
The company continues an active programme of R&D, developing a range of fuel blends for its potential customer base. Miles said: “Energy economics, environmental considerations and regulatory emissions compliance increasingly support the business case for MSAR and bioMSAR technology. With favourable market dynamics, the company plans to progress opportunities with new clients and channel partners, building on the momentum gained in this last year. Significant progress has also been made developing new biofuel feedstock options for bioMSAR and bioMSAR Zero.”
Quadrise opened trading this week at 2.26p, up 77% over one-year but down 20% year-to-date. Quadrise has a market capitalisation of GBP34.5m.
Tom Fraine, an analyst for Shore Capital, which has Quadrise under coverage said: “We are pleased to see this collaboration [with Auramarine], which leverages Quadrise’s expertise in lower carbon fuels with Auramarine’s fuel supply system design and installation expertise. The latter will help convert marine vessels globally to Quadrise’s MSAR and bioMSAR fuels.”
Fraine added: “This update follows the AGM announcement on 22nd November, which indicated that key milestones towards the commercialisation Quadrise’s proprietary technology are set to be reached imminently.”
