Quadrise Plc (LON:QED) was recently highlighted by Shore Capital in a report which discusses the recent developments involving Quadrise, BTG Bioliquids BV (BTL), and Euthenia Energy Group. Quadrise has been collaborating with BTL to investigate the potential of using BTL’s fast pyrolysis bio-oil (FPBO) for Quadrise’s bioMSAR fuel, resulting in positive outcomes and stable formulations. This advancement aligns with Quadrise’s goal to produce a net-zero biofuel by 2030.
Quadrise and BTL have entered into a Project Development Agreement with Euthenia, a company that focuses on renewable energy projects across Europe, North America, and the Caribbean. The agreement includes a series of lab and pilot tests, diesel engine testing, and plans for a commercial marine vessel trial. This collaboration aims to accelerate the development of sustainable fuels for the global shipping industry, particularly in the Mediterranean.
Additionally, Quadrise has partnered with Cargill, a significant renewable biofuels supplier, to produce fuels for marine vessel trials, notably on the MSC Leandra. This partnership is seen as promising due to Cargill’s extensive fleet and market presence, potentially generating significant revenues for Quadrise if MSC switches a portion of its fuel needs to Quadrise’s solutions.
Tom Fraine, Research Analyst at Shore Capital said, “We are encouraged to see another multinational company acknowledge Quadrise’s solutions for decarbonisation and commit to an agreement. This 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 >500 vessels and considerable scale in global markets.
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 small percentage of the shipping company’s overall fuel demand was switched to MSAR or bioMSAR. MSC currently consumes close to 10m tonnes of fuel oil annually and we believe Quadrise could charge c.$50 per tonne for licensing its technology.“
The report highlights the efficiency, cost-effectiveness, and environmental benefits of Quadrise’s fuels compared to current marine fuels. It also touches on the broader industry and regulatory context, noting recent calls by shipping company CEOs for an end to fossil-fuel-powered vessels and urging regulatory support for green fuels, which Shore Capital think could further benefit Quadrise’s position in the market.
