Quadrise Fuels International PLC (LON:QFI) made “staged progress” through the past year, expanding the breadth and depth of its market opportunity for its MSAR technology, the company said ahead of today’s AGM.
The specialist fuel firm, in a statement, noted that it raised £4.5mln of new funds in the third quarter of the year, enabling it to continue business development activities.
"We are very pleased to be able to provide a comprehensive update to our shareholders at the 2019 AGM which demonstrates the success of our strategy to broaden and deepen our business development pipeline,” said Mike Kirk, Quadrise chairman.
“With secured funding now in place we are focused on translating this into tangible actions and trials that will enable us to progress to commercial operations."
The company’s approach focusses on the use of partnerships, and opportunities where it can leverage in-house business development capabilities.
Identifying specific examples of its progress, the company noted that its in-country representative in Morocco has “proven to be very effective”, securing an agreement with a major chemicals business for a pilot plant.
The partnership with Freepoint Commodities has unearthed opportunities in Central and South America which are expected to be valuable in the commercialisation of projects.
Another partner, Redliner, has arranged meetings in Mexico over what’s described as “a significant opportunity” which will be followed up through the remainder of 2019 and 2020.
In Saudi Arabia, the company noted “good progress” with partner Al Khafrah and the company said it expects a high level engagement with one of the major stakeholders shortly to define a route to project delivery as soon as possible.
The company’s opportunity in Kuwait was confirmed in a recent meeting, with a new ‘grass roots’ refinery nearing completion and other plant upgrades slated in the country – all of which opportunities for the company.
It said it continues to review review opportunities in Asia, particularly a possible refinery refuelling venture in Japan, and, a partner is exploring opportunities in China.
Quadrise is also advancing opportunities in Europe. An initial phase has been completed with a European refiner, and, the client is presently reviewing the economics of the company’s proposition compared to rival options. In terms of a timetable, a on-site trail could start in the first half of 2020, if the client decides to proceed.
Work with a European oil major hasn’t progressed materially, the company noted, and forwards progress will be dependent upon the development of major power or industrial customers.
In a separate statement, Quadrise this morning also announced that it has issued share warrants – as part of an agreement with a international chemicals and mining group headquartered in Morocco.
It told investors that Quadrise and the client will work together in a joint project team, for a trial of MSAR in a pilot plant test at a facility during the first quarter of 2020.
If successful, the partners could undertake feasibility and engineering studies for commercial trials.
The new partner has now been issued with 3mln share warrants, giving it the right to acquire Quadrise shares at any time until 6 March 2022 at a calculated price (the average mid-price for a five day period preceding the exercise).