REG - Quadrise PLC - AGM Statement

QuadriseAnnouncement

27/11/2023 07:00

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RNS Number : 6686U  Quadrise PLC  27 November 2023

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

27 November 2023

Quadrise Plc
("Quadrise" or the "Company")

AGM Statement

Quadrise Plc (AIM:QED), the supplier of innovative energy solutions for a
cleaner planet, is pleased to provide the following update ahead of the
Company's Annual General Meeting ("AGM") which commences today at 12 noon.

At the conclusion of the AGM, the Company will provide a business update
presentation to shareholders present at the venue and online via the Investor
Meet Company ("IMC") platform. The presentation is open to all existing and
potential investors. Those wishing to attend online via IMC can register
via: https://www.investormeetcompany.com/quadrise-plc/register-investor
(https://url.avanan.click/v2/___https:/www.investormeetcompany.com/quadrise-plc/register-investor___.YXAxZTpzaG9yZWNhcDphOm86Nzg1MDljYzgzNGVhM2QxZTIxMDNiOWVlYTAxYWE1YTk6Njo2MWEwOmI0NWE1ZTZhMjM4YTZkMzk4OWZmYTlkZDFjZTJhMWNiZWVkODJlNGM5NWQ5MmE4NTVlMDUzM2IxMmIyYWE1Y2I6cDpU)

 

2023 Overview and Update

 

The Company's recently published 2023 sustainability report set out our
efforts to address demand for solutions to decarbonise shipping, and to build
capacity for the supply of our low-carbon fuels in the US. In advance of the
anticipated developments outlined below, a formal process is now underway to
seek commercial partners in both the marine and US-focused low-carbon fuel
markets who would be able to contribute the resources necessary to scale up
growth rapidly once trials have been completed.

 

In this regard, we have also been particularly heartened by the success of
bioMSAR™ in Morocco, as announced on 22 November 2023, demonstrating the
viability of bioMSAR™ in an industrial application. Building on this, there
has been considerable RDI progress at the Quadrise Research Facility ("QRF")
with commercial partners to develop bioMSAR™ formulations using lower cost,
lower-carbon, and globally abundant biomass-derived sugars produced using
various technologies. This is a clear pointer to the future for the Company as
the need for commercially competitive net-zero fuel solutions grows in
urgency.

 

The Company's progress in each of its key projects towards their next stages
is described below.

 

Key projects:

Morocco: The industrial demonstration test of MSAR® and bioMSAR™ fuels at
the client's site in Morocco was successfully completed, as announced on 22
November 2023. This was the first demonstration of bioMSAR™ in a commercial
application and Quadrise is now preparing a technical report to submit to the
client within the next month. The parties now look forward to entering into
discussions for long-term commercial supply in conjunction with reaching an
agreement for testing at other client sites to expand supply opportunities for
MSAR®, and in the future, bioMSAR™ fuels.

Marine: Agreements with project stakeholders covering the Proof-of-Concept
and Letter Of No Objection ("LONO") commercial trials on bioMSAR™ with MSC
Shipmanagement ("MSC") are expected to be concluded in December 2023. The
agreements cover trial fuel production, supply, and logistics. Provided these
and the relevant permits are concluded in time, Quadrise equipment will be
installed and commissioned at the bunker terminal in Q1 2024, with the
intention to commence the trials in  early Q2 2024, in accordance with the
latest vessel schedule shared by MSC recently.

US low carbon fuels: Quadrise understands that Valkor Technologies
LLC ("Valkor") expects to conclude drilling permits and project financing
relating to their primary project site in Utah by the end of the calendar year
2023. Provided a minimum of US$15 million is successfully raised by Valkor,
under the terms of the Site License and Supply Agreement signed in June 2023,
Valkor will pay Quadrise an initial US$1.0 million licence fee and a
further US$0.5 million upon delivery of an MSAR® Manufacturing Unit to the
project site in Utah.

bioMSAR™ development

As described in the overview above, during FY23 and since the period end, work
has been progressing at the QRF in conjunction with commercial partners
Vertoro BV and BTG Bioliquids BV, as well as with other prospective partners,
to develop bioMSAR™ formulations made using  biomass-derived sugars. These
are a lower cost and more globally abundant future alternative to glycerine
and would enable a lower cost, lower carbon biofuel alternative to be produced
which could then be marketed at scale to the marine and industrial sectors.
Discussions have been progressing with other stakeholders in this renewable
sector.

In November 2023, diesel engine testing was completed at Aquafuel on blends of
bioMSAR™ containing 20% to 40% of Vertoro's crude sugar oil (CSO™). The
testing demonstrated improved engine efficiency and lower Nitrogen oxide
("NOx") and particulate emissions upon combustion when compared to
conventional diesel. Quadrise and Vertoro are now discussing the next steps
toward commercialisation of the CSO™ bioMSAR™ blends. Aquafuel tests were
also completed using blends of marine B30 biofuels containing FAME in MSAR®
and bioMSAR™ to assess engine efficiency and emissions improvements, both of
which were positive and a further step towards bioMSAR™ Zero.

Commenting on the update, Jason Miles, Chief Executive Officer of QED, said:

"During 2023, we have continued to make progress with each of our key projects
as well as with our work to supply bioMSAR™ at commercial scale and develop
lower carbon biofuel alternatives using biomass derived sugars. We were
particularly pleased to note the first commercial scale demonstration of
bioMSAR in Morocco, where the client's industrial unit was successfully
operated at varying loads of up to 100%, equivalent to the energy consumption
of a medium-sized container ship.

The progress made in Morocco is vitally important to the Company as we look to
progress to commercial supply there and to commence marine trials on board the
MSC Leandra in H1 2024. Preparations for the MSC trials are now underway, with
agreements expected to be signed by year-end. In addition, the Company expects
to deliver commercial revenues from Valkor in the near future upon successful
closure of Valkor's project financing.

The progress at QRF and Aquafuel with commercial partners to develop and trial
bioMSAR™ formulations using cheaper and globally abundant biomass derived
sugars provides a clear pointer to the future for the Company, since a lower
carbon biofuel alternative will be demanded by the marine and industrial
sectors.

To prepare for the expected growth of MSAR® and bioMSAR™ sales, a
structured process is now underway to seek commercial partners that would
allow the Company to be able to quickly scale up once the key project
milestones have been met and we look forward to updating shareholders on this
exercise in due course.

On behalf of the board, I would once again like to thank our loyal
shareholders for their continued support, and I look forward to seeing many of
you at the AGM in person."

 

 

For additional information, please contact:

 

 Quadrise Plc                                             +44 (0)20 7031 7321
 Andy Morrison, Chairman

 Jason Miles, Chief Executive Officer

 Nominated Adviser
 Cavendish Capital Markets Limited                        +44 (0)20 7220 0500
 Ben Jeynes
 Katy Birkin
 Joint Brokers

 Shore Capital Stockbrokers Limited

                                                          +44 (0)20 7408 4090
 Toby Gibbs, Rachel Goldstein (Corporate Advisory)
 Fiona Conroy (Corporate Broking)
 ( )                                                ( )   ( )
 VSA Capital Limited                                      +44 (0)20 3005 5000

 Andrew Raca (Corporate Finance)

 Andrew Monk (Corporate Broking)

 Public & Investor Relations
 Vigo Consulting                                          +44 (0)20 7390 0230

 Patrick D'Ancona

 Finlay Thomson

 

About Quadrise

Quadrise is the supplier of MSAR® and bioMSAR™ emulsion technology, fuels
and biofuels, providing innovative solutions to reduce energy costs and
greenhouse gas emissions today for clients in the global power generation,
shipping, industrial and refining industries.

 

Learn more at: www.quadrise.com
(https://url.avanan.click/v2/___http:/www.quadrise.com/___.YXAxZTpzaG9yZWNhcDphOm86Nzg1MDljYzgzNGVhM2QxZTIxMDNiOWVlYTAxYWE1YTk6NjpiOGEwOmYyM2JjYmVjZmYzMWQ3NjFlZGYyYzNkN2Q4YTNhYzI2YmM2YjVhOWRlYzAyYjhiYmEyYWU2NmIwZTU2MDMxOTc6cDpU)

 

 

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