Quadrise plc (LON:QED) has provided an update on its ongoing collaboration with MSC and Cargill. According to the latest report by Shore Capital, authored by analyst Tom Fraine, Quadrise is making progress towards finalising a binding agreement that will pave the way for trials of its MSAR and bioMSAR fuels aboard the MSC Leandra.
Progress Towards Agreement
As of the latest announcement, Quadrise continues to maintain regular contact with MSC and other project stakeholders. The company is poised to commence the installation of its equipment immediately upon the agreement’s conclusion. This development follows Quadrise’s February 2024 announcement, which projected that trials would begin in the second quarter of 2024, contingent on the finalisation of necessary agreements.
Preparations and Permits
Quadrise’s partner, MAC², has already secured the requisite operating permits for installing Quadrise’s equipment at its Antwerp facility. This location will serve as the production site for the fuels required for the upcoming trials. The site has been fully prepared, awaiting only the finalisation of the binding agreement.
Market Potential
The marine sector represents a substantial opportunity for Quadrise, especially through its collaboration with MSC. Should even a small fraction of MSC’s annual fuel consumption—estimated at around 10 million tonnes—shift to Quadrise’s MSAR or bioMSAR fuels, it could translate into significant annual revenues for Quadrise. Analyst Tom Fraine estimates that Quadrise could potentially charge around $50 per tonne for licensing its technology.
Analyst Insights
Tom Fraine of Shore Capital notes, “Quadrise’s opportunity in the marine sector with MSC alone could be worth a multiple of its current enterprise value in potential annual revenues if only a small percentage of the shipping company’s overall fuel demand was switched to MSAR or bioMSAR.”
Final Thoughts
Quadrise plc’s ongoing efforts with MSC and Cargill underscore its potential to revolutionise the marine fuel sector. With the anticipated trials and the strategic partnerships in place, Quadrise is well-positioned to capitalise on this significant market opportunity. The conclusion of the binding agreement will mark a critical milestone in advancing these innovative fuel solutions.
