Quadrise plc, listed on the London Stock Exchange under the ticker QED, has been making significant progress in its effort to reshape the energy sector with greener, safer, and more efficient fuel options. A recent research note from Shore Capital, written by analyst Tom Fraine, suggests that Quadrise is well-positioned to play a key role in decarbonising the shipping industry and other sectors.
The company is currently working with major partners, including MSC and Cargill, to bring its advanced fuel solutions to the market. One of the most anticipated projects is the upcoming trial with MSC, which is now scheduled to start in early Q1 of 2025. Although the trial has been delayed, all stakeholders remain enthusiastic. Preparations for installing and commissioning Quadrise’s equipment at the MAC² terminal are ongoing, and a proof-of-concept test is expected in early 2025, which may lead to a longer commercial supply arrangement during the trial phase.
In Morocco, preparations are also underway for a 30-day commercial trial at the OCP Jorf Lasfar site, following a successful industrial demonstration. This trial indicates a strong potential for Quadrise’s MSAR fuel to be integrated into large-scale commercial operations. Earlier in 2024, the company signed a Commercial Framework Agreement with OCP, which is a significant step towards long-term supply contracts.
Quadrise’s partnership in Utah with Valkor is another important development. After a successful pilot drilling, Valkor has begun producing extra-heavy sweet oil, which is now being sent to Quadrise for testing. The goal is to market Quadrise’s MSAR fuel, with Valkor aiming to increase production to between 500 and 800 barrels a day. Potential financing milestone payments from Valkor also highlight the growth prospects of this partnership, which could provide the necessary financial boost for further expansion.
The company continues to innovate with its bioMSAR fuel, a blend designed to reduce environmental impact. Trials conducted during FY24 showed that bioMSAR achieved over 38% reductions in CO2 emissions compared to traditional diesel fuels, while also improving diesel engine efficiency and significantly cutting NOx emissions. These results demonstrate Quadrise’s intention to lead the way in developing sustainable fuel alternatives.
Quadrise is also working on “bioMSAR Zero,” a prototype of a 100% sustainable biofuel. According to Tom Fraine, the company is on course to deliver a commercial version of this fuel well before its 2030 target, marking a major step forward in cleaner fuel technology.
Financially, Quadrise reported a post-tax loss of £2.9 million for the year ending in June 2024, which is an improvement compared to the previous year’s £3.1 million loss. The company’s cash balance of £3.0 million is expected to sustain its ongoing development initiatives. Despite some challenges, Quadrise’s strong partnerships and promising projects suggest that the company is well-positioned for future growth.
Shore Capital sees substantial potential for Quadrise’s innovative fuels, particularly in the marine sector, where there is a growing emphasis on decarbonisation. With MSC using approximately 10 million tonnes of fuel oil annually, even a small shift to Quadrise’s MSAR could translate into a significant revenue opportunity. Furthermore, the relationship with Cargill, one of the largest renewable biofuel suppliers, lends credibility to Quadrise’s advancements in the biofuel sector.
Quadrise is setting an example for how the energy industry can meet emerging challenges through meaningful evolution. With strong global partnerships like MSC and Cargill, as well as innovative technologies such as bioMSAR, Quadrise is making tangible progress in reducing carbon footprints across different industries. Tom Fraine’s optimistic outlook on Quadrise’s projects reflects the company’s potential to become a key player in the shift towards sustainable, cost-effective fuels.
Quadrise’s future looks promising as it continues to advance in its pursuit of cleaner energy solutions and gains traction in the evolving energy landscape.
Quadrise plc (LON:QED) is an energy technology provider whose solutions enable production of cheaper, cleaner, simpler and safer alternatives to fuel oil and biofuels, proven in real world applications. Quadrise technologies produce transition fuels called MSAR® and bioMSAR™, which allow clients in the shipping, utilities and industrial sectors to reduce carbon emissions whilst also saving costs.
