Quadrise is entering a transformative phase, underpinned by its first revenues and a successful £6.53 million fundraising effort. With key commercialisation projects progressing across multiple regions, the company is poised for significant expansion. Ongoing trials with MSC, the Panama-based Sparkle power plant, and Morocco’s OCP, alongside a commercial ramp-up at Valkor, signal a major growth trajectory.
A Breakthrough with Valkor
A pivotal milestone has been achieved through Quadrise’s partnership with Valkor Technologies, which recently secured US$15 million in project financing. This funding enables project advancement and triggers phased payments to Quadrise, including US$1 million in licence fees, US$0.5 million for the delivery of multifuel manufacturing units (MMUs), and quarterly service fees of US$75,000.
Oliver O’Donnell, CFA, Natural Resources Analyst at VSA Capital, noted:
“This marks a major milestone for QED and the start of commercialisation. Its successful completion should give investors confidence that the business is entering a new and transformational phase.”
With the initial well targeting production of 30-40 barrels per day and scaling up to 500-800 barrels per day, Quadrise is making tangible progress towards full-scale commercialisation.
MSC Trial Could Unlock Transformational Growth
Quadrise’s upcoming trial with MSC is another game-changer, with fuel production scheduled to commence in Q2 2025. If successful, the trial could lead to long-term agreements, significantly boosting revenue potential.
VSA Capital’s analysis suggests that Quadrise’s technology could be deployed across up to 110 ships, generating an estimated annual revenue of US$183 million and EBITDA of US$40 million. Given that around 40% of MSC’s 800-strong fleet is suitable for Quadrise’s fuel solutions, the potential upside is vast.
O’Donnell commented:
“Our estimates indicate a significant opportunity, with long-term agreements dependent on the outcome of the trial. If successful, this could be a major revenue driver.”
Expansion in Morocco and Panama
Quadrise’s strategic growth extends to Morocco and Panama. The partnership with OCP, one of the world’s largest phosphate and fertiliser producers, is advancing, with a crucial 30-day trial awaiting scheduling. Success here could open the door to long-term supply agreements.
Meanwhile, Quadrise is preparing for a key trial with Panamanian power producer Sparkle Power SA. This will be the first real-world test of MSAR and bioMSAR fuels on a MAN four-stroke diesel engine, potentially unlocking further commercial opportunities in Panama’s 200MW power sector.
Financial Strength and Market Momentum
With its latest fundraising complete, Quadrise now boasts its strongest balance sheet since 2021. Investor confidence is growing, reflected in a 61.4% rise in the company’s share price over the past year.
VSA Capital maintains its BUY recommendation, recognising Quadrise’s strong positioning:
“The start of MSC trial preparations and the Valkor milestone have driven strong share price performance. With first revenues due this year and a robust balance sheet, QED is well-placed to sustain momentum towards commercial revenues and profitability.”
A Defining Year Ahead
Quadrise is at a critical inflection point, with multiple commercialisation pathways converging. Strategic partnerships with MSC, Valkor, and OCP, coupled with its strengthened financial position, provide a solid foundation for sustained growth.
With trials progressing and market interest surging, Quadrise is well on its way to becoming a leader in sustainable fuel solutions. Investors are watching closely as 2025 unfolds, with the potential for substantial value creation.
