logo-loader
viewQuadrise Fuels International PLC

Quadrise Fuels looks though oil market disruption to long-term potential

Snapshot

MSAR is a cleaner substitute for heavy fuel oil that is burned to power large cargo ships

Cargo ship

Quick facts: Quadrise Fuels International PLC

Price: 2.17 GBX

LSE:QFI
Market: LSE
Market Cap: £22.46 m
Follow
  • Developed MSAR heavy fuel oil substitute

  • Memorandum of agreement with Saudi investment group

  • Agency agreement to accelerate use of MSAR in Mexico

  • Three-year deal agreed with Nouryon

 

What Quadrise does

Quadrise Fuels International PLC (LON:QFI) has been perfecting a type of fuel called MSAR for the best part of 20 years.

MSAR is made from the thick, almost solid residues left when lighter fractions such as gasoline and diesel have been distilled from the crude oil which are then mixed with a small amount of water and speciality chemicals.

What’s created is a synthetic heavy fuel oil which is around one-third water. With a couple of simple, relatively cheap tweaks to a ship’s engine or a power station’s boiler, it can be used as a direct replacement for diesel or heavy fuel oil.

Because of the high-water content, the combustion temperature is much lower which reduces NOx emissions, and as MSAR is pre-atomised, it burns almost completely, meaning next to no black soot is pumped out into the atmosphere.

Not only is it cleaner – it reduces nitrogen oxide (NOX) emissions by between 20-50% - but MSAR, being made from quite literally the dregs of a barrel, is also cheaper than typical heavy fuel oils as well.

How it's doing

In May, Quadrise said that a new round of cost savings has given it financial headroom until the middle of next year (2021).

"We are pleased that we have been able to deliver a material extension to our cash runway, which will now take us to mid-Q2 2021,” Quadrise chairman Mike Kirk said in a statement.

 “This provides us the opportunity to progress our business development opportunities in earnest for over one-year - an increase of around 5 months to that forecasted at the beginning of 2020.”  

Kirk said the group has also made material progress in the second phase of work in Morocco and on the techno-economic studies with its client in South America, while it is also in talks over multiple opportunities in the marine sector.  

What the boss says: Mike Kirk, chairman

“Although the oil market is significantly disrupted at this time, we do not believe our clients are basing their medium to long-term plans on the current pricing environment and so we remain confident of the opportunities to progress our projects to commercialisation, which will underpin any future funding needed in the period up to mid-Q2 2021, "

Watch the interview

Inflexion points

  • A three-year exclusive global collaboration and emulsifiers sales agreement with speciality chemicals giant Nouryon.
  • Re-start of pilot trial in Morocco once coronavirus pandemic eases
  • Partnership with Saudi Arabia-based Al Khafrah Holding Group, an investment group which has a portfolio comprising 42 industrial companies 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Quadrise Fuels International PLC named herein, including the promotion by the Company of Quadrise Fuels International PLC in any Content on the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Quadrise Fuels' Mike Kirk clarifies commercial discussions with TomCo Energy...

Quadrise Fuels International PLC's (LON:QFI) Mike Kirk says they've agreed in principle to the deployment of its MSAR alternative marine fuel trial equipment for a project managed by Valkor in Utah. Valkor is a partner with AIM-quoted TomCo Energy PLC (LON:TOM) for the enhancement of a oil sands...

3 weeks, 3 days ago

3 min read