Brokerage Shore Capital Markets expressed optimism on Quadrise PLC (AIM:QED)’s progress in Utah following a Friday update.
Quadrise revealed that drilling at Asphalt Ridge is scheduled to start next week, with completion anticipated before the end of April.
Samples from the first well will be treated to remove impurities and then sent to Quadrise for conversion to MSAR and bioMSAR and testing.
"We are encouraged to see progress in this project, which will combine Valkor’s low carbon extraction methods with Quadrise’s technology to produce a highly marketable, low sulphur fuel, which is set to be cheaper and significantly more environmentally friendly than conventional fuels," stated a spokesperson from Shore Capital.
Following this phase, Quadrise’s partner Valkor plans to initiate marketing of the fuel by the end of the second quarter of 2024, focusing on the marine, utilities, and industrial sectors.
“We continue to see great potential for Quadrise’s fuels,” said Shore Cap analysts. “The company’s opportunity in the marine sector with MSC alone could be worth a multiple of its current enterprise value in potential annual revenues if only small percentage of the shipping company’s overall fuel demand was switched to MSAR or bioMSAR.
“MSC currently consumes close to 10 million tonnes of fuel oil annually and we believe Quadrise could charge around $50 per tonne for licensing its technology.”