Quadrise PLC (AIM:QED) today confirmed a key step towards commercialisation, and stockbroker Shore Capital believes it can open up further opportunities.
The AIM-quoted firm on Wednesday announced the successful completion of a proof-of-concept fuel trial in Panama, with SparklePower at its plant in El Giral.
The successful trials and emissions tests marked the first use of the company’s MSAR and bioMSAR fuels on Everllence 4-stroke engines, expanding commercial prospects.
Quadrise is now working with Sparkle Power on the next steps towards confirming commercial supply arrangements for Sparkle and fuel permitting in Panama.
“We are pleased to see Quadrise reach an important milestone in demonstrating the viability of MSAR and bioMSAR on Everllence 4-stroke engines, expanding their commercial potential across engine types in energy-intensive sectors seeking to decarbonise cost effectively,” Shore Capital analyst Tom Fraine said in a note.
The broker, in a note, highlighted the scope of the Sparkle opportunity – estimating 100,000 tonnes of heavy fuel oil, and suggested Quadrise could charge the equivalent of $50 per tonne for its fuel products.
In London, Quadrise shares gained some 32% on Wednesday, taking the price to 4.15p.
Advancing discussions
Quadrise chief executive Jason Miles called the result “a significant milestone”.
He said the successful trial had demonstrated the viability of MSAR and bioMSAR on Everllence 4-stroke engines “through a strong collaborative endeavour”.
Talks are expected to take place to progress the Sparkle venture.
"With confirmed improvements in engine efficiency and emissions, we look forward to advancing discussions with Sparkle and a regional supply partner to establish a commercial supply facility serving the power and marine sectors across Central America,” Miles said.
Sparkle general manager Jose Castillo added: "The Quadrise test has confirmed the fuels are viable replacements for heavy fuel oil at our facility ... the test has confirmed that MSAR and bioMSAR fuels can achieve the necessary criteria for commercial implementation in the country."
Results in more detail
The tests showed reduced nitrogen oxide emissions by 25% with bioMSAR and 32% with MSAR, and 20% lower particulate emissions for both fuels.
Conducted over a 24-hour main trial and a shorter secondary test, they confirmed both engine efficiency improvements and the technical feasibility of fuel deployment.