Quadrise shares are close to an all-time low, despite assurances that a ruling in Utah would not materially impact its development plan with Valkor, notes house broker Shore Capital.
Also, Quadrise intends to conclude agreements with stakeholders of its project with MSC Shipmanagement, including a major global trading company, as soon as possible, following the completion of key preparatory steps for the commercial trials of bioMSAR.
The commercial-scale Proof-of-Concept and Letter of No Objection trials are expected to commence in the first quarter of 2024.
In Morocco, an industrial demonstration test at the client site is expected to be completed this month. A replacement pump for the test was installed in September.
“Quadrise’s proprietary fuels have the ability to significantly reduce both fuel costs and emissions," added the broker.
“They also make the transportation and handling of fuel easier versus conventional heavy fuel oil and no significant adaptions to equipment are required for their usage.”
In the marine sector, the partnership with MSC alone could be worth a multiple of Quadrise’s current enterprise value in potential annual revenues if only a 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.”