As Quadrise PLC (AIM:QED) continues to put together its jigsaw pieces, to establish a significant marine fuels business, stockbroker Shore Capital has cheered its latest industry collaboration.
Quadrise on Wednesday announced a new potential partnership, with Licella Holdings, to explore the use of renewable feedstocks in marine fuels.
Licella’s technology enables ‘abundant biomass’ - including materials such as forestry waste, agricultural waste and ‘energy crops’ - to be processed, to create a feedstock that can be used in the production of biofuels.
Together the companies will assess the potential of Licella’s Cat-HTR bio-intermediate for use in Quadrise’s bioMSAR and bioMSAR Zero fuels.
It comes as Quadrise is about to enter commercial trials for its marine fuels, with shipping giant MSC.
Shore Capital highlighted, in a note, that the Licella news is the latest in “a wave of positive news flow” that’s driven the AIM-quoted share to increase some 150% in value.
Moreover, this latest team-up gives Quadrise access to what industry experts (including boffins at the ‘Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping’) see as “one of the most viable production pathways for marine biofuels.”
“Fuels derived from biomass are potentially the most price competitive net-zero biofuel solutions,”
“We note that Quadrise has previously announced that it is progressing the development of a net zero fuel by 2030 ahead of target, and we are encouraged to see this update, which aims to expand Quadrise’s range of feedstocks for its lower-cost, lower-emissions fuels (compared to conventional biofuels).”
The Licella partnership will start in the lab, with testing slated to start in the Quadrise Research Facility.
If successful, lab-scale diesel engine testing is expected within 12 months.