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Quadrise Fuels keen to build momentum for MSAR technology

Snapshot

MSAR is a cleaner substitute for heavy fuel oil that is burned to power large cargo ships

Cargo ship

Quick facts: Quadrise Fuels International PLC

Price: 2.5099 GBX

LSE:QFI
Market: LSE
Market Cap: £24.99 m
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  • Develops MSAR heavy fuel oil substitute

  • Has signed memorandum of agreement with Saudi investment group

  • Agency agreement to accelerate use of MSAR in Mexico

  • Three-year deal agreed with Nouryon

 

What Quadrise does

If someone asks you to list the major causes of climate change, gas-guzzling cars and planes are probably at the top of your list, or at least somewhere near.

But if you think those forms of transport are bad, they are a drop in the ocean compared with cruise liners and cargo ships.

Engines in some of the world’s biggest vessels can be four stories tall and almost as wide. They can burn through gallons of fuel every minute, which in turn creates a large amount of CO2.

International shipping accounts for around 2.2% of all global greenhouse gas emissions, according to the data from the UN’s International Maritime Organisation (IMO).

To put that into context, that’s the same amount as Germany.

Quadrise Fuels International PLC (LON:QFI) has long been aware of this issue. It has been perfecting a type of fuel called MSAR for the best part of 20 years now.

MSAR is made from the thick, almost solid residues left when lighter fractions such as gasoline and diesel have been distilled from the crude oil which are then mixed with a small amount of water and specialty chemicals.

What’s created is a synthetic heavy fuel oil which is around one-third water. With a couple of simple, relatively cheap tweaks to a ship’s engine or a power station’s boiler, it can be used as a direct replacement for diesel or heavy fuel oil.

Because of the high-water content, the combustion temperature is much lower which reduces NOx emissions, and as MSAR is pre-atomised, it burns almost completely, meaning next to no black soot is pumped out into the atmosphere.

Not only is it cleaner – it reduces nitrogen oxide (NOX) emissions by between 20-50% - but MSAR, being made from quite literally the dregs of a barrel, is also cheaper than typical heavy fuel oils as well.

How it's doing

Quadrise is still at the stage of proving the concept of its MSAR technology and persuading a conservative industry to adopt it.

Progress is being made, nonetheless.

In Morocco, the group's partner has “proven to be very effective”, securing an agreement with a major chemicals business for a pilot plant.

The partnership with Freepoint Commodities has unearthed opportunities in Central and South America, which are expected to be valuable in the commercialisation of projects.

Another partner, Redliner, has arranged meetings in Mexico over what’s described as “a significant opportunity” which will be followed up through the remainder of 2019 and 2020.

In Saudi Arabia, the company noted “good progress” with partner Al Khafrah and the company said it expects a high-level engagement with one of the major stakeholders shortly to define a route to project delivery as soon as possible.

In January, Quadrise shuffled its board with chief operating officer Jason Miles promoted to chief executive and head of projects Mark Whittle taking over as COO.

Mike Kirk remains as the company’s executive chairman.

Watch the interview

Inflexion points

  • In October, a three-year exclusive global collaboration and emulsifiers sales agreement was signed with speciality chemicals giant Nouryon.
  • The agreement is to supply goods and services for future MSAR synthetic fuel projects.
  • In June, Quadrise inked an agency agreement with industrial infrastructure firm Redliner to fast-track projects for its MSAR technology in the Mexican market.
  • In May, the company pencilled a partnership deal with Saudi Arabia-based Al Khafrah Holding Group, an investment group which has a portfolio comprising 42 industrial companies 

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Quadrise Fuels' Mike Kirk highlights progress across pipeline of business...

Quadrise Fuels International PLC's (LON:QFI) Mike Kirk talks Proactive London's Andrew Scott through its latest business and operations update. He says they're pleased with the progress being made especially in Morocco following two site visits in the last couple of months. Kirk adds...

1 week ago

3 min read