Quadrise Plc (LON:QED) is entering a transformative phase, having secured its first revenues and completed a successful £6.53 million fundraising to drive commercialisation across multiple key projects. With progress on trials with MSC, the Panama power plant (Sparkle), and OCP in Morocco, as well as a commercial ramp-up at Valkor, the company is well-positioned for substantial growth.
A Major Step Forward with Valkor
One of the most significant developments for Quadrise is its partnership with Valkor Technologies, which has now secured US$15 million in project financing. This enables Quadrise’s project to progress and triggers phased payments, including licence fees and service payments.
Oliver O’Donnell, CFA, Natural Resources Analyst at VSA Capital, commented:
“This triggers phased payments of licence fees totalling US$1m; US$0.5m to cover delivery of multifuel manufacturing units (MMU) and quarterly service fees of US$75k and marks a major milestone for QED and the start of the commercialisation. Its successful completion should give investors confidence the business is entering a new and transformational phase.”
With the first well already targeting production of 30-40 barrels per day and ramp-up milestones of 100 and 500-800 barrels per day, Quadrise is poised for commercial success. The next stage involves scaling production and securing further agreements with industrial partners.
MSC Trial Set to Unlock Significant Potential
Preparations for Quadrise’s landmark trial with MSC are advancing, with fuel production set to begin in Q2 2025. If successful, this could lead to long-term agreements that would unlock transformational earnings potential.
According to VSA Capital’s analysis, Quadrise’s products could supply up to 110 ships, generating annual revenue of US$183 million and EBITDA of US$40 million on a tolling basis. This is based on an upside scenario of deploying 10 Multifuel Manufacturing Units (MMUs).
The scale of opportunity is significant, as O’Donnell highlights:
“Of MSC’s total fleet of over 800 ships, around 40% is suitable for QED products and our estimates are indicative, with the long-term agreements contingent on the outcome of the trial.”
Expansion into Morocco and Panama
Quadrise’s partnership with OCP in Morocco is also progressing, with a 30-day trial awaiting final scheduling. OCP, one of the world’s largest phosphate and fertiliser producers, represents a strong potential commercial customer.
Additionally, the company is conducting a new trial with Panamanian power producer Sparkle Power SA. This will be the first test of Quadrise’s MSAR and bioMSAR fuels on a MAN four-stroke diesel engine, opening the door to further opportunities in the region’s 200MW power sector.
Strengthening Financial Position and Market Outlook
With its fundraising complete, Quadrise now has its strongest balance sheet position since 2021. The share price has surged by 61.4% over the past year, reflecting growing investor confidence.
VSA Capital reiterates its BUY recommendation, recognising the company’s potential:
“The start of preparations for the MSC trial and the Valkor milestone have translated into strong share price performance. The balance sheet is in its strongest position since 2021 and with first revenues due this year, QED is well-positioned to maintain momentum towards commercial revenues and ultimately profitability.”
Final Thoughts
Quadrise is at a pivotal moment in its journey, with multiple commercialisation pathways converging towards revenue generation. The company’s partnerships with MSC, Valkor, and OCP present substantial opportunities, and the latest financial backing ensures a strong runway for execution.
With trials progressing and market interest growing, Quadrise is on track to establish itself as a leader in sustainable fuel solutions. Investors will be watching closely as 2025 unfolds, with the potential for significant value creation.
