Over the last two and a half years Quadrise Fuels International has reduced its dependence on individual projects by building up a global network of partner companies, which are identifying and progressing commercial opportunities involving the production and supply of MSAR. Quadrise’s H120 pre-close trading update summarises recent developments in each of the group’s key sectors: utility generation; industrial applications; marine bunker fuel; and as an alternative fuel in upstream heavy oil production operations.
The most advanced project is in Morocco for an industrial application. The group has conducted two site visits, enabling it to complete a hazard and operability study of the pilot kiln and equipment for a trial. Quadrise has almost finished constructing the heating and pumping unit for the trial and will make the fuel later this month, preparatory to commencing the first trial phase in March. This phase is scheduled to complete in early calendar Q220. If successful, the programme will move to a second phase, with the client paying Quadrise £100k for the feasibility and engineering studies for commercial scale trials.
Quadrise has held meetings with potential clients in the other three target sectors. These include a national oil company in South America; a major independent power project developer for a project in Mexico; two major shipping companies (not Maersk) and upstream developers with opportunities in Africa and North America.
Quadrise raised £2.0m in H120. Management expects this will be sufficient to pursue business development activities throughout CY20. It can raise a further £2.0m in funding from Bergen in August 2020 through the issue of additional convertible securities if the share price has not remained below 3p for 60 days and the aggregate nominal value (up to £2.15m) does not exceed 3.5% of the company's market capitalisation on issue.