Quadrise Fuels International PLC (LON:QFI) said it is continuing to build “positive momentum” and demonstrate significant progress in several key areas of its business as the company said it has been able to mitigate the impact of coronavirus (COVID-19) on its business.

In an update to be delivered at its AGM later on Friday, the AIM-listed firm said while the timetable of some specific activities had been impacted by the pandemic, it has worked with clients to ensure that overall programmes remain on track.

WATCH: Quadrise Fuels International get set for AGM to seize upon opportunities in 2021

Looking to its specific projects, Quadrise said a phase 2 study and planning for the larger industrial-scale trial at a client’s facilities in Morocco is being carried out, with both trials scheduled to be completed in the first quarter of 2021, for which the company will be paid GBP100,000. Pending a positive outcome, a phase 2 trial is planned for the second quarter of next year and will be the final precursor for commercial roll-out.

The company also said that progress is being made with Greenfield Energy on plans for the commercial trial at the Asphalt Ridge facility in Utah, USA. Although there have been delays in the start-up the Petroteq Oil Sands Plant (POSP), commissioning of the plant is now planned to begin shortly and a trial of Quadrise’s MSAR heavy fuel oil (HFO) is scheduled to take place at POSP during the first quarter of 2021.

In Saudi Arabia, the group said it is continuing to have “constructive discussions” with the major power utility in the kingdom together with its local partners Al Khafrah Holding Group, with whom it has been working to engage with key stakeholders.

Meanwhile, Quadrise said it has continued to progress opportunities with the intention of reaching agreement as soon as possible for the undertaking of letter of no objection (LONO) trials with major companies in the container and/or bulker markets during 2021. Plans under discussion relate to scheduling and vessel and fuel supply preparations being made during the first half of 2021 to commence LONO testing on the main engines of commercial vessels installed with exhaust gas cleaning systems in the second half of the year.

In Ecuador, the company said following rapid progress earlier this year, momentum has now stalled as a result of reorganisational changes by the government impacting the state oil company. Quadrise said it remains in contact with the key stakeholders via its local agents, but progress will be dependent on relations normalising between the ministry and a stable management team at the state oil company.

Quadrise also said it its progressing early-stage work which, pending confirmation in planned larger-scale studies, would fundamentally enhance the environmental and sustainability credentials of MSAR, with its Green MSAR product to incorporate biofuel derivatives alongside residue and Nouryon additives to reduce emissions compared to standard HFO. The firm added that this provides an opportunity to “fundamentally increase the market opportunity in all applications, and the speed and scale of market penetration”, with a progress update and a formal product launch to be delivered in early December.

The company said it is working closely with Nouryon regarding the development and patenting of Green MSAR, while Quadrise said it is also looking at opportunities for Nouryon to provide more comprehensive support for its business development activities where relationships with common clients can be used to “good effect”.

“We are very pleased to be able to provide a comprehensive update to our shareholders following the 2020 AGM. This has been a challenging year for many businesses throughout the world, so we are pleased that we have been able to continue to make good progress in our business development and testing and trial activities, and we have an exciting 2021 planned to provide a pathway to commercial revenues”, Quadrise executive chairman Mike Kirk said in the AGM statement.

“Our proactive approach to cost management during the year has meant that we were able to extend the runway of our existing cash resources from December 2020, through to mid-[second quarter] 2021”, he added.

“We are encouraged by the recent progress Quadrise has made and the breadth of opportunities it has to commercialise MSAR. Given its economic, environmental and handling advantages over conventional heavy fuel oil, we believe MSAR has huge potential”, analysts at house broker Shore Capital said in a note.

Shares in Quadrise were 17.5% lower at 1.7p in mid-morning trading on Friday.

–Adds broker comment and share price–

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