Quadrise Fuels International PLC (AIM:QFI) said it signed a commercial development agreement with Valkor Technologies LLC to commercialise Quadrise’s MSAR and bioMSAR technology at Valkor’s projects in Utah.
Shares in AIM-traded Quadrise jumped as much as 22% to 2.4 pence following the announcement.
Under the first phase of the agreement, set to be completed by end June 2022, Valkor will deliver a crude oil sample from a heavy oil asset in Utah to Quadrise, which will then analyse and test the sample to confirm its suitability to produce MSAR and bioMSAR technology.
MSAR has economic, environmental and handling advantages over the conventional refining of heavy fuel oil.
The two companies will work together to negotiate supply agreements with targeted consumers and finalise the technical and operational requirements and commercial terms for the license and supply of Quadrise’s technology.
Under the second phase, Quadrise plans to grant Valkor exclusive terms over the deployment of the technology in the state of Utah.
Profits generated will be shared based on contribution made by each company to each project.
“Quadrise is delighted to have executed this agreement and looks forward to working expeditiously with the Valkor team to conclude commercial agreements for supply of MSAR and bioMSAR for identified projects,” said Quadrise chief executive Jason Miles.
"We are delighted to work jointly with Quadrise to secure high value opportunities for our Utah heavy sweet oil projects, following the successful testing completed on oil sands samples from the pilot plant last year,” added Valkor chief executive Steven Byle.