Quadrise plc (LON:QED) has been making remarkable strides in its mission to revolutionise the energy sector, and recent updates highlight their commitment to greener fuels that are safer, cheaper, and more efficient. According to a research note from Shore Capital, penned by analyst Tom Fraine, Quadrise is positioning itself as a significant player in decarbonising the shipping industry and beyond.
Moving Ahead with Key Partnerships and Trials
Quadrise is currently collaborating with leading partners like MSC and Cargill to test and bring its advanced fuel solutions to the market. One of the most eagerly anticipated projects is the trial with MSC, which is now set to begin in early Q1 of calendar year 2025. This delay from the original schedule has not diminished the enthusiasm surrounding the project, with all parties working towards installing and commissioning Quadrise’s equipment at the MAC² terminal. Tom Fraine reassures investors that an updated timetable is in place, and all systems are go for a proof-of-concept test in early 2025, setting the foundation for a longer commercial supply arrangement during the trial period.
Meanwhile, in Morocco, preparations are underway for a 30-day commercial trial at the OCP Jorf Lasfar site. This follows a successful industrial demonstration, signalling strong potential for Quadrise’s MSAR fuel to integrate seamlessly into large-scale commercial operations. The signing of a Commercial Framework Agreement with OCP earlier in 2024 marks a pivotal moment, bringing the company closer to potential long-term supply agreements.
Utah’s Promising Prospects
Another significant update comes from Utah, where Quadrise is collaborating with Valkor for oil production. Following a successful pilot drilling, Valkor is now producing extra-heavy sweet oil, with barrels being sent to Quadrise for testing. The next step is to market Quadrise’s MSAR, with Valkor optimistic about increasing production to between 500 and 800 barrels a day. The potential financing milestone payments from Valkor also underscore the promising nature of this partnership, which could provide the necessary financial momentum for further growth.
Driving Innovation with bioMSAR
Quadrise’s commitment to innovative, sustainable energy solutions is evident in its continued work on bioMSAR, a fuel blend designed to significantly reduce environmental impact. In trials conducted during the FY24 period, bioMSAR demonstrated over 38% reductions in CO2 emissions when compared to traditional diesel fuels, alongside an increase in diesel engine efficiency and a major reduction in NOx emissions. These results reflect Quadrise’s ambition not just to compete but to lead in the move towards more sustainable fuel options.
Quadrise is also developing a prototype of “bioMSAR Zero”—a 100% sustainable biofuel. According to Tom Fraine, the company is well on track to deliver a commercial version of this fuel well ahead of its 2030 target, marking a significant milestone for cleaner fuel technology.
Financial Position and Forward-Looking Strength
Financially, Quadrise reported a manageable loss after tax of £2.9 million for the year ended June 2024, a slight improvement from the previous year’s £3.1 million loss. The company maintains a cash balance of £3.0 million, which will support its ongoing development efforts. With major projects lined up and strong partnerships, the financials point to a company that is poised for long-term growth, despite some challenges.
Shore Capital sees “considerable potential” for Quadrise’s innovative fuels, particularly in the marine sector where there is an increasing push for decarbonisation. The shipping giant MSC consumes close to 10 million tonnes of fuel oil annually, and even a small percentage switch to Quadrise’s MSAR could represent a significant revenue stream. Additionally, the relationship with Cargill, one of the largest suppliers of renewable biofuels, adds further credibility to Quadrise’s efforts in the biofuel space.
Quadrise is setting an example of how the energy industry can evolve to meet new challenges. With partnerships that include global giants like MSC and Cargill, and promising new technologies like bioMSAR, Quadrise is taking meaningful steps to reduce carbon footprints across industries. Tom Fraine’s positive assessment of Quadrise’s ongoing projects underlines the potential for Quadrise to become a key player in the global move towards more sustainable and cost-effective fuels.
The future certainly looks bright for Quadrise as it continues to build momentum and innovate in the pursuit of cleaner energy solutions.
