REG - Quadrise PLC - Update re bioMSAR™ and bioMSAR™ Zero Development

QuadriseAnnouncement

06/12/2023 07:00

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RNS Number : 7923V  Quadrise PLC  06 December 2023

6 December 2023

 

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

Update re bioMSAR™ and bioMSAR™ Zero Development

Finalised results from recent diesel engine testing identify new pathways
towards bioMSAR™ Zero

Quadrise Plc (AIM:QED), the supplier of innovative energy solutions for a
cleaner planet, is pleased to confirm the finalisation of results from
bioMSAR™ fuel testing completed in November 2023 (the "bioMSAR™ Tests"),
further to the Company's announcement of 27 November 2023.

The ultimate objective of the Company's bioMSAR™ programme is to supply the
marine and industrial fuel sectors with sustainable biofuels that are lower in
cost, more efficient, safer yet simple to use, and which generate the fewest
harmful emissions.

The bioMSAR™ Tests were conducted using the Company's 40kW Cummins diesel
engine installed at Aquafuel Research Limited ("Aquafuel").

Key highlights of bioMSAR™ Tests

·    bioMSAR™ blends containing Vertoro's Crude Sugar Oil ("CSO™")
reduced carbon dioxide ("CO(2)") emissions by over 30% when considering
increased engine efficiency of up to 7%, and significantly reduced emissions
of Nitrogen Oxides ('NOx') and Carbon Monoxide ("CO") when compared with
diesel.

·    New bioMSAR™ formulations incorporating biofuels containing
waste-based methyl esters were shown to reduce CO(2) emissions by over 45%,
increase engine efficiency by up to 7%, and reduce NOx and CO emissions
significantly when compared with diesel, providing a new potential pathway to
bioMSAR™ Zero.

bioMSAR™ with Crude Sugar Oils and other biomass-derived sugars

Quadrise and biorefinery specialists, Vertoro BV ("Vertoro"), have been
collaborating to develop a cost-effective supplement or alternative to
glycerine in bioMSAR™ fuel under the Joint Development Agreement ("JDA")
announced by Quadrise on 21 September 2022.

The bioMSAR™ Tests concluded in November were completed on blends of
bioMSAR™ containing up to 40% of Vertoro's CSO™ as a replacement for
renewable glycerine. When compared with conventional diesel fuel, the CSO™
bioMSAR™ demonstrated:

·    Reductions of up to 25% in carbon dioxide ("CO(2)") emissions before
engine efficiency savings are considered.

·    Additional engine efficiency improvements of 6-7% resulting in
reduced fuel use, taking total CO(2) reductions to over 30%, in line with
previous bioMSAR™ testing results.

·    Reductions in NOx of around 30%, comparable with 20-45% seen during
previous testing with bioMSAR™ on the same engine.  Furthermore, a
reduction in CO emissions of over 50% was measured, with negligible visible
smoke.

Based on these results, testing of the 40% CSO™ bioMSAR™ and 40%
glycerine-based bioMSAR™ on a larger medium-speed Wartsila engine at VTT is
scheduled in H1 2024. This additional testing will be performed in parallel
with testing of CSO™ in bioMSAR™ at levels above 40% at the Quadrise
Research Facility ("QRF") and at Aquafuel.

In addition to the CSO™ development programme described above, work is
progressing under the JDA with BTG Bioliquids BV ("BTL") on pyrolysis sugars
derived from biomass, and with other prospective partners who can supply C5/C6
sugars at commercial scale.

Large scale adoption is a key customer requirement for marine and industrial
applications and the  ability to use water-soluble biomass sugars within the
Company's unique oil-in-water emulsion fuels opens up access to abundant
bio-energy waste resources. Such waste material cannot otherwise be easily
diverted into higher-value applications that use oil-based biofuels or
oil-based emulsions.

bioMSAR™ with methyl esters

For the first time, Quadrise have tested blends of bioMSAR™ incorporating
B30, a marine biofuel of 30% methyl esters blended with fuel oil, providing a
new potential pathway to bioMSAR™ Zero.

B30 methyl esters are currently the most widely available marine biofuels.
Engine tests were carried out at Aquafuel to assess engine efficiency and
emissions improvements.

In this first phase of testing, bioMSAR™ blends were made with up to 70% B30
and up to 40% glycerine respectively. When compared to diesel, these blends
demonstrated:

·    Up to 40% well-to-wake CO(2) reductions based on the carbon intensity
of the components, before accounting for diesel engine efficiency savings.

·    Enhanced diesel engine efficiency of 3-7% with a corresponding
reduction in fuel costs, further reducing overall CO(2) emissions by up to
45%.

·    Reductions in NOx emissions of 43%-59% and CO savings of 58-76% with
negligible visible smoke.

The successful results described above provide a pathway to further reduce the
fossil fuel content of our emulsion blends using methyl esters.

The next phase of testing will incorporate higher concentrations of
waste-based methyl esters, and ultimately B100 combined with glycerine or
biomass-derived sugars.  The plan is to demonstrate a commercial bioMSAR™
Zero product well ahead of the Company's 2030 target. The biofuel samples are
being supplied by a major trading company.

These latest results are available on the QED website at:

https://www.quadrise.com/references/biomsar-zero/
(https://www.quadrise.com/references/biomsar-zero/)

Further announcements will be made, as appropriate, in due course.

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

"A recent joint declaration by major shipping company CEOs at COP 28 called
for an end date for fossil-fuel only powered newbuild vessels and urged the
IMO to create the regulatory conditions to accelerate the transition to green
fuels. This reinforces the importance of our bioMSAR™ programme in helping
to secure the energy transition as we look to meet the needs of our current
and prospective clients.

These test results demonstrate that our flexible MSAR® technology platform
can produce fuels which can be marketed at scale to the marine and industrial
sectors using existing bunkering infrastructure. This will aid these sectors
in meeting their climate targets while maintaining vessel operating life.

Quadrise and our commercial partners are excited by these results and we look
forward to progressing the testing programme to the next stages, with the
intention upon successful testing to offer our first fossil-free bioMSAR
Zero™ product at commercial scale in advance of 2030."

Commenting on the update, Michael Boot, co-Founder and co-Chief Executive
Officer of Vertoro, said:

"With our proprietary technology we can convert up to 80% of lignocellulosic
biomass to CSO™. Using such 2G sugars directly as a sustainable fuel,
thereby foregoing the traditional conversion to ethanol, offers a significant
cost advantage for end users. We look forward to scaling up production and to
continue our joint testing program with Quadrise and their commercial
partners."

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 7397 8900
 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.

 

About Vertoro

Vertoro is a Maersk Growth-backed producer of sustainable bio-based platforms,
notably crude lignin oil (CLO) and crude sugar oil (CSO™), which are
extracted from abundant agricultural and forestry residues using their
proprietary Goldilocks® technology. CLO is compatible with methanol-powered
diesel engines, while CSO™, using Quadrise' proprietary bioMSAR™
technology, is compatible with conventional diesel engines.

 

Learn more at: www.quadrise.com (http://www.quadrise.com/)

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