Quadrise PLC (AIM:QED) has announced a new joint development agreement with BTG (LSE:BTG) Bioliquids, a renewable biofuels specialist, which sets up a collaboration.
Together the intention is to use BTL’s fast pyrolysis bio-oil (FPBO) as a source for the production of bioMSAR, the proprietary sustainable fuel created by Quadrise.
It also includes a provision for the companies to undertake a joint research programme to generate stable bioMSAR emulsions, which could be used in diesel engine tests during the next 12 months and potentially, subject to results marine testing.
"Quadrise is delighted to have signed this JDA with BTG (LSE:BTG) Bioliquids,” said chief executive Jason Miles. “Advanced biofuels derived from woody biomass remain potentially the most price competitive net-zero biofuel solutions.
“This joint collaboration fits well with our plans to commercialise bioMSAR with MSC Shipmanagement and others, as well as advancing our programme to supply net-zero bioMSAR by 2030.”
Miles added: “BTG Bioliquids' fast pyrolysis bio-oils combined with Quadrise's bioMSAR technology should provide a compelling solution for the marine sector to accelerate decarbonisation and emissions reduction efforts economically and safely."
Gerhard Muggen, BTG Bioliquids managing director, said: "BTG Bioliquids is pleased to have signed this agreement with Quadrise to continue our strategy of cooperating with other companies to develop attractive applications for fast pyrolysis bio-oil.
“The successful inclusion of fast pyrolysis bio-oils into bioMSAR™ would be a major step in decarbonising the shipping and power industries.”
In a note, stockbroker Shore Capital analyst Tom Fraine said he was encouraged by this latest agreement.
“Advanced biofuels from woody biomass are amongst the most price competitive of net-zero biofuel solutions and the JDA supports Quadrise’s plan to supply net-zero bioMSAR by 2030,” the analyst said.
--Updated to include broker comments--