Quadrise Plc (LON:QED) has taken a major step forward in its commercial journey following the successful completion of its first fuel trials in Central America. The company, known for its proprietary emulsion fuel technologies, MSAR® and bioMSAR™, has announced the results of its landmark trial with Panamanian power producer Sparkle Power SA.
The trial involved running the Everllence 4-stroke diesel engines at Sparkle’s 50MW heavy fuel oil (HFO) plant using fuels manufactured by a Quadrise MMU (multifuel manufacturing unit) installed on-site. Over a 24-hour period, MSAR and bioMSAR demonstrated not only effective performance but also environmental benefits, with notable reductions in harmful emissions compared to traditional HFO.
As research analyst Oliver O’Donnell, CFA at VSA Capital writes, “The trials confirmed improved energy efficiency and reduced emissions of nitrogen oxides (NOx), 25% with bioMSAR and 32% with MSAR, and particulate matter (PM) compared with heavy fuel oil (20% reduction with both fuels). Maximum engine load achieved was 74% using the standard fuel injection system designed for fuel oil, which was in line with expectations.”
These results position Quadrise at the forefront of sustainable fuel innovation in a region still heavily reliant on oil for electricity generation. Panama, in particular, presents a compelling opportunity. Though hydroelectric power accounts for more than 60% of electricity generation, fluctuations of up to 30 percentage points year-to-year due to rainfall variability mean backup oil-fired power remains critical.
Quadrise and Sparkle Power are now planning the next stage – commercial fuel supply and permitting agreements. With several other heavy fuel oil plants in Panama and nearby countries like Nicaragua and Honduras still dependent on bunker and diesel fuels, the potential for wider regional expansion is evident. Quadrise’s technology could help power producers in these markets transition to lower-emission alternatives without major engine retrofits.
In addition to the power sector, Panama’s shipping industry offers another attractive market. As a major bunkering hub, with over 10,000 vessels passing through the Panama Canal each year, the demand for cleaner marine fuels is growing, particularly as new regulations and carbon pricing measures are rolled out.
The Sparkle trial also offers broader strategic value. As noted in the report, “Our research has indicated a number of other operations using MAN engines meaning that the Sparkle trial results should be valuable qualification for other customers in the region.” This includes both power plants and marine operators, giving Quadrise an edge in future negotiations.
Despite delays in other trials such as MSC and Valkor, this successful step in Panama helps rebalance the company’s development pipeline and has already had a positive effect on its share price, which has bounced back to its highest level in three months.
Key Highlights from the Sparkle Power Trial and FY Results:
- 24-hour engine test confirmed emission reductions: 32% NOx (MSAR), 25% NOx (bioMSAR), 20% PM.
- Panama plant running at 70% capacity could consume ~100ktpa of MSAR.
- Positive share price movement following the trial success.
- £7.1 million cash on hand as of February 2025.
- FY24 loss reduced to £2.86 million, compared to £3.1 million the year prior.
- Additional opportunities identified across Central America and the Caribbean.
In Summary
The successful Panama trial is more than a technical validation for Quadrise – it is a strategic gateway into a region with underappreciated commercial potential. With tangible emissions benefits, proven engine compatibility, and a market hungry for sustainable solutions, Quadrise is well placed to capitalise on this momentum. As VSA Capital reiterates its Buy recommendation, investors will be watching closely as the company moves towards its first commercial supply agreements in Central America.
