Quadrise PLC (AIM:QED) has made impressive progress recently in all areas, according to broker Shore Capital, though it sees the shipping and alternative fuel areas as having the most upside.
The group’s proprietary bioMSAR and MSAR fuels for marine and industrial usage have the ability to significantly reduce both fuel costs and emissions, said the broker.
Transportation and handling of fuel is easier versus conventional heavy fuel oil and no significant adaptions to equipment are required for their usage.
In the marine sector with MSC alone, Quadrise’s opportunity could be worth a multiple of its 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.”