Quadrise PLC (AIM:QED) has expanded its agreement with BTG (LSE:BTG) Bioliquids (BTL) with a new deal set to advance the partners towards a commercial-scale operation.
A new cooperation framework agreement (CFA) is now in place, building on a prior joint development agreement (JDA) which got underway in June 2023.
It aims to advance the supply and development of the company’s bioMSAR, incorporating BTL’s sustainable Fast Pyrolysis Bio-Oil (FPBO) products.
So far, Quadrise has successfully produced stable emulsions with 20% BTL FPBO sugars – tested using Cummins diesel engines, and further testing is scheduled for the third quarter.
Under the newly extended arrangement, there will now be additional testing on larger engines from the fourth quarter through the first quarter of 2025.
After that, it expects a final round of testing ahead of commercial-scale bioMSAR supply.
To support the future commercial-scale supply of FPBO sugars, Quadrise and BTL are planning to construct a pilot plant in Dordrecht, Netherlands.
"This new agreement is a result of the substantial progress Quadrise and BTL have made with their respective technologies and provides a clear plan to incorporate BTL's sustainable pyrolysis sugars into bioMSAR,” Quadrise chief executive Jason Miles said in a statement.
“This agreement also expands our future options for bioMSAR Zero testing and production."
Gerhard Muggen, BTG (LSE:BTG) Bioliquids managing director, meanwhile, commented: “This is an exciting next step, moving us towards large engine testing and production of bioMSAR using renewable pyrolytic sugars produced from BTL's licensed process and fractionation technology."