Quadrise PLC (AIM:QED) chief executive Jason Miles told investors that it entered the 2024-25 financial year with strong momentum, and it is preparing to play its part in accelerating the global transition away from fossil fuels.
Significantly, Miles said that the business case for the firm’s core products the MSAR and bioMSAR technologies – which are proprietary alternative fuels – is being driven increasingly by energy economics, environmental considerations, and emissions regulations.
“With strong market conditions, the company is well-positioned to progress commercial trials with industry majors and build on traction gained during the period with new potential clients while advancing biofuel options for bioMSAR™ production and net-zero solutions,” Miles said in today’s full year results statement.
Presently, investor attentions are particularly focussed on the company’s envisaged pilot venture with global shipping giant MSC, in which the Quadrise fuel will be used via marine services terminals.
It is one of several projects and partnerships that promise to unlock a significant commercial scale-up for Quadrise.
Whilst noting that recent progress had been ‘slower than previously anticipated’, the company sees key catalysts in the coming months.
“The pending agreement with MSC and Cargill will formally kick off activities at the MAC² terminal during Q4 2024, to prepare for fuel supply to the MSC vessel trial from Q1 2025 onward followed by commercial supply upon success,” Jason Miles highlighted.
“Our team is also preparing to complete the OCP commercial trial in Morocco in early Q4 and has commenced discussions with candidate suppliers for long-term commercial MSAR® supply upon success.
“Heavy sweet oil from the Valkor projects in Utah has commenced production, with the State of Utah approving Valkor's plans for future drilling.
“Conclusion of the MSAR® site license and planned equipment delivery to Valkor in Utah is therefore expected, pending successful resolution of eagerly awaited project financing by Valkor.”
Miles added: “the time for Quadrise technology delivery is now and the team are focused on achieving that goal."
In terms of financials, Quadrise reported a £2.9 million loss for the year, narrowed from a £3.1 million loss in the previous year.
It ended the financial year ended 30 June with £3 million of cash reserves. The company also noted that it has some £64.7 million of cumulative tax losses which will potentially be available for set-off against future profits.