Quadrise [LON:QED], the AIM-quoted developer of alternative fuels for shipping and heavy industry, has warned of delays to its flagship marine trials even as it reported progress across a number of international projects.
The London-based company, which produces low-emission fuel emulsions under the MSAR and bioMSAR brands, said agreements with Mediterranean Shipping Company (MSC) and commodities trader Cargill were in “near final” form but not yet signed. Quadrise shares in London slipped over 13% on the news on Monday morning.
The tie-up is intended to pave the way for full-scale commercial trials at the MAC2 site in Antwerp. However, the tests, which had been scheduled for the third quarter of this year, are no longer expected to start on time because of protracted approval processes at its counterparties.
Quadrise said the installation of equipment at the Belgian facility would begin once contracts were finalised, but gave no revised timetable. In the meantime, the group is seeking to broaden its marine business development pipeline to accelerate potential adoption of its biofuel products.
Fuel trials completed with Sparkle Power
In the Americas, the company completed fuel trials with Sparkle Power in Panama. Quadrise said the on-site teams had expressed satisfaction with performance, but it is still awaiting the formal conclusions from the engine manufacturer and the client.
A successful outcome would allow negotiations on supply agreements to proceed, as well as support discussions with other regional power producers. The tests are particularly significant for Quadrise as they represent the first use of MSAR and bioMSAR on MAN four-stroke diesel engines, expanding the technology’s potential applications.
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In Morocco, Quadrise continues to prepare for a planned commercial trial with phosphate producer OCP, though progress remains stalled pending final approval from the equipment manufacturer. The necessary trial infrastructure has already been installed.
Meanwhile, in the US, output growth at its partner Valkor in Utah has lagged expectations. Quadrise said the lack of production has held back the development of midstream operations and marketing, though Valkor expects the shortfall to be resolved shortly. Quadrise and Valkor are also negotiating a compensation arrangement after the deferral of a $350,000 licence fee due to the company in January.
Quadrise pressing ahead
Beyond these specific projects, the group said it was pressing ahead with additional development discussions and testing to demonstrate that its bioMSAR and zero-carbon bioMSAR Zero fuels could deliver cleaner and cheaper alternatives to conventional marine and industrial fuels.
Andy Morrison, chair of Quadrise, acknowledged the frustration caused by delays but insisted the company remained well positioned for eventual scale-up.
“Whilst much is being done to prepare ourselves for the scale-up of our business, it is disappointing that we have not been able to progress our existing projects as quickly as we had expected,” he said. “We remain committed to completing these projects, to demonstrating the significant value add to our clients that Quadrise technology can bring, and to being positioned to act quickly as and when further opportunities arise.”
Shares in Quadrise, which has yet to generate significant commercial revenues, have been volatile this year as investors await evidence that its technology can move from pilot projects to large-scale adoption.
