Quadrise plc (LON:QED), a pioneering company in advanced fuel technology, has achieved another significant milestone by signing a Material Transfer and Trial Agreement with Sparkle Power SA. This exciting development, strengthens Quadrise’s position in the thermal power sector and underpins its ambitious commercialisation plans.
The partnership with Sparkle Power centres on their 50MW El Giral power plant in Colon, Panama. As part of the agreement, Quadrise will provide and install trial equipment, including a cutting-edge five-tonne-per-hour Multifuel Manufacturing Unit. The trial, scheduled to last one week, will showcase Quadrise’s proprietary MSAR and bioMSAR fuels. These trials aim to validate the fuels’ performance under actual power demand from the Panamanian electricity grid.
Adding to the potential of this collaboration, two other major power suppliers in the region, boasting a combined capacity of 200MW, have shown interest in observing the trial. This could pave the way for further partnerships and substantial revenue opportunities for Quadrise.
Shore Capital’s analyst, Tom Fraine, highlights the strategic significance of this development:
“We see considerable potential for Quadrise in Panama, noting that a 50MW power plant alone can consume up to 100,000 tonnes of heavy fuel oil per annum at 100% load, and we believe Quadrise could charge $50/t of fuel oil equivalent.”
Quadrise’s innovative approach is not just about reducing costs but also enhancing sustainability. The trial will utilise a widely employed MAN 4-stroke diesel engine, broadening Quadrise’s appeal across both the power and shipping sectors. Successful trials could lead to a technical and economic feasibility study for broader commercial applications, offering Quadrise a compelling growth trajectory.
Beyond Panama, the company continues to make waves globally. In a previous announcement on 26 November, Quadrise unveiled a three-way agreement with MSC and Cargill for trials on an MSC vessel. Fraine emphasised the massive potential of this opportunity, stating that if even a fraction of MSC’s vast fuel demand of 10 million tonnes per year switched to Quadrise’s technology, it could result in annual revenues far exceeding the company’s current valuation.
On a Final Note
Quadrise plc’s momentum is a testament to its innovative solutions and strategic partnerships. With a firm foothold in Panama and the potential for global expansion, the company appears well-positioned for future success. The recent developments reaffirm Quadrise’s path towards commercialisation, offering exciting possibilities for shareholders and stakeholders alike.
