Quadrise PLC (AIM:QED)'s recent advancements in bioMSAR fuel technology, as detailed in their latest tests, have garnered positive reactions from industry analysts, including those at Shore Capital.
The broker's recent note underscores the significant potential of innovations in sustainable marine fuel, particularly in light of the global push towards greener energy solutions.
Its analysis points to the scheduled further testing of bioMSAR on larger medium-speed engines in the first half of 2024, a move that aligns with the industry's growing demand for environmentally friendly fuel alternatives.
Shore highlights the importance of Quadrise's collaboration with BTG (LSE:BTG) Bioliquids on pyrolysis sugars derived from biomass, emphasising the potential for commercial-scale supply of these sustainable resources.
The broker's note also reflects on the substantial emissions reductions and advantages over traditional diesel, as demonstrated in Quadrise's tests. This is particularly relevant given the recent call by shipping industry leaders for an end to fossil-fuel-only powered newbuild vessels, a sentiment echoed at the Company’s Annual General Meeting (AGM).
Shore's analysis suggests a significant market opportunity for Quadrise, especially with major shipping companies such as MSC, which could translate into substantial revenues for Quadrise if even a small percentage of MSC's fuel demand shifts to MSAR or bioMSAR technologies.
The broker estimates that Quadrise could potentially charge around £50 per tonne for licensing its technology. To put this into context, MSC's annual fuel consumption is nearly 10 million tonnes.
In early afternoon trading, the stock was up 30% at 3.13p.