Shares in Quadrise PLC (AIM:QED) (Quadrise PLC (AIM:QED)) rose 7.5% in mid-afternoon trading following an update to its licensing agreement with Valkor. The revised deal is expected to deliver the company’s first revenues by the end of January.
The news comes as Valkor confirmed it had secured $15 million in project financing to develop its Primary Project Site (PPS) at Asphalt Ridge in Utah. The site is part of a heavy oil project that will utilise Quadrise’s proprietary technology for on-site processing.
Broker Shore Capital, which has closely followed the company’s progress, welcomed the update. “We are encouraged to see Quadrise confirm its first licence revenues and the progress made by Valkor,” it said. “The continued production from the oil wells will assist the next phase of customer acquisitions and sales.”
It also highlighted Quadrise’s agreement with shipping firm MSC as a potentially larger opportunity. The partnership involves Quadrise’s green fuel additives, MSAR and bioMSAR, which are designed to reduce costs and emissions.
“MSC currently consumes close to 10 million tonnes of fuel oil annually, and we believe Quadrise could charge approximately $50 per tonne for the use of its technology,” Shore Capital noted.
Even a small percentage of MSC’s fuel demand being met with MSAR or bioMSAR could result in “substantial high-margin annual revenues.
The shares were up 0.46p at 6.6p.