Quadrise Fuels International PLC (AIM:QFI, OTC:QDRSF) told investors it has signed a new agreement with its client in Morocco, which sees the company supply trial quantities of its MSAR and bioMSAR alternative fuels for an industrial demonstration at one of the client's sites.
The company will then provide the client with a written report on the efficacy of using MSAR and bioMSAR, the new agreement states. Subject to the demonstration test meeting client-specified deliverables, it is then expected that they will enter negotiations for a potential commercial supply of the products.
At the same time, Quadrise is completing a technical and economic feasibility study for an additional industrial demonstration test at a second site for the client. It noted that this is now nearing completion, pending a final site visit by the Quadrise team.
"We are advancing all of our projects to progress them towards commerciality,” said Quadrise chief executive Jason Miles.
“We are pleased that we have renewed our agreement with this key client in Morocco.
“We are confident that we will be able to demonstrate the economic and environmental benefits of using MSAR and bioMSAR at the client's industrial site, and look forward to expediting the project."
The new agreement supersedes the original agreement signed in November 2019.
It is anticipated that the work (demonstration test and feasibility) will be completed during the third quarter of 2022, and, the agreement will be valid for one year unless mutually extended.