Quadrise Fuels International is the innovator, supplier and global licensor of disruptive residual oil technology that produces a synthetic, enhanced heavy fuel oil called MSAR. The technology enables refiners to produce MSAR for use as a low-cost substitute for heavy fuel oil.
Quadrise is still pre-revenue. Stripping out share option and exceptional charges, operating losses narrowed by £0.4m y-o-y in FY H121 (calendar H220) to £1.4m, reflecting lower production and development and administrative costs. Free cash outflow decreased by £0.4m to £1.3m. Post-period end, the group completed a placing and oversubscribed open offer, raising £7.0m (gross) at 2.7p/share. Management expects it now has the cash resources to progress the ongoing trial programmes to commercial revenues and positive sustainable cash flows by July 2022.
Quadrise successfully completed a pilot trial at a customer site in Morocco during calendar H220 and launched its biofuel variant, bioMSAR which produces 20–30% lower carbon dioxide (CO2) emissions as well as lower nitrogen oxide and particulates. The company is currently preparing for larger scale trials in Morocco, a pilot trial in Utah and on-vessel trials with MSC Shipmanagement, having signed a joint development agreement with the shipping company this January. Management notes that these activities could potentially result in the first commercial shipments of MSAR by the end of calendar 2021.