Quadrise Fuels International PLC (AIM:QFI, OTC:QDRSF), the supplier of alternative fuels, believes it is on course to commercialisation targets following positive engagement with counterparties in recent weeks.
The company’s board recently completed a review of the company’s projects, operations and business development activities, the upshot of which was that the company intends to progress with each of its core projects as well as with the development of bioMSAR fuel and its derivatives.
Quadrise’s management recently met with the management of MSC Shipmanagement in Cyprus and both parties continue to make progress on the finalisation of an agreement covering the LONO (Letter of No Objection) trial programme aboard MSC container shipping vessels and the subsequent commercial framework.
Meanwhile, the testing of MSAR and bioMSAR on Wärtsilä's optical combustion chamber is now scheduled for the third quarter of this year, followed by injector wear rig testing on bioMSAR in the fourth quarter, due to the unavailability of key resources at Wärtsilä and its testing partners. Quadrise and Wärtsilä are working together to ensure there are no further delays to this programme during 2022.
Commercial supply of bioMSAR to MSC would then be expected to commence early in the fourth quarter of 2023, following receipt of a LONO from Wärtsilä.
Since its last operational update, Quadrise has conducted a detailed analysis of the crude glycerine market and appointed a consultant to review global sourcing and partnerships for supply and refining. Commercial and supply discussions are underway with various biodiesel suppliers to secure the required volumes and quality of renewable, fuel-grade glycerine to support the forthcoming MSC trials and as a source for future bioMSAR commercialisation.
Elsewhere, in Morocco, Quadrise continues to work with the client team to finalise terms on an updated material transfer and cooperation agreement with its international chemicals and mining client following the expiry of the prior agreement in December 2021. It is currently expected that this updated agreement will be entered into this month.
In Utah, Quadrise and Valkor Technologies have begun working together under the phase 1 of the commercial development agreement to identify potential consumers of MSAR and bioMSAR fuel to be produced by the Utah heavy oil asset in which Valkor has an equity interest.
“The board is of the firm view that the best path to value creation is to progress each of our core projects to address the needs of the energy sector during the transition period, whilst continuing to develop our low carbon fuel options, including bioMSAR fuel and derivatives for a cleaner energy future,” said Jason Miles, the chief executive officer of Quadrise.
“Market conditions and the economic climate for Quadrise are increasingly favourable, with potential customers under added pressure to reduce fuel costs, whilst also lowering emissions. Fuel oil-diesel product spreads are at very high levels due to the war in Ukraine and global supply constraints.
“Given the developments described above, we expect to convert our projects to agreements soon, and on behalf of the team at Quadrise, I would once again like to thank our shareholders for their ongoing patience and support, and we look forward to being able to announce further material progress soon,” Miles said.
Shares in Quadrise initially rose to 2.35p on the news from 1.92p overnight before surrendering some of the gains.