The specialist fuel firm said following its annual general meeting in November, it had made progress in a number of areas to “increase the breadth and depth of its business development programme”.
These included the conclusion of a hazard and operability study of a pilot kiln and associated QFI equipment to undertake the trial in Morocco, as well as discussions over various power applications, refinery refuelling and co-development opportunities in Saudi Arabia, South America, Mexico and Kuwait.
Quadrise is also in discussions with a European refinery around using its MSAR fuel technology, with a decision expected at the end of the third quarter of 2020.
Negotiations are also ongoing regarding business collaboration opportunities between Quadrise and chemicals firm Nouryon, as well as other related companies owned by private equity firm Carlyle Group.
In its marine arm, the company said it has had “positive meetings” with two major shopping companies with more planned over the use of its MSAR fuel in their fleets.
Possible upstream applications
Quadrise is also in discussions over possible upstream applications for MSAR with developers in Africa, South American and North America.
The firm added that it had enough cash to pursue its activities across the 2020 calendar year, with another £2mln of funding potentially available from August.
If it is able to draw down the additional cash, Quadrise said this is expected to meet its project expenditure levels.
“The QFI board believes that the business development pipeline above provides the platform needed to deliver our strategy of translating opportunities during 2020 into projects with commercial revenue potential, and we look forward to providing further updates on progress”, the company said.
In a note to clients, analysts at joint ‘house’ broker Shore Capital, pointed out: “To provide context for the scale of the opportunity for Quadrise, we note that the NPV for a single notional 750,000tpa MSAR project, at a 15% discount rate, would be c.US$80m (approximately 3p/share).”
In afternoon trading, Quadrise shares were 2.3% higher at 2.41p.
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