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Quadrise Fuels gains momentum with deals 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: 4.125 GBX

LSE:QFI
Market: LSE
Market Cap: £41.07 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.

 

Watch the interview

What the boss says:

Chairman Mike Kirk said the company has inked deals internationally in Kuwait and Mexico for its MSAR low-cost alternative to heavy fuel, as well as Memoranda of Understanding in Russia and Saudi Arabia which it is “working very hard” to accelerate.

Kirk said that with an topped-up funding pot of £4.5mln to draw on, with another £2mln to become available next year, this provides a “firm platform for the business” which will “get us right through to the medium term and actually into 2021”.

Inflexion points

  • In October, a three-year exclusive global collaboration and emulsifiers sales agreement was signed with speciality chemicals giant, Nouryon. The collaboration agreement with Nouryon is to supply goods and services for future MSAR synthetic fuel projects and will run for three years.
  • 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 employing 45,000 people, with partners in the oil, gas and petrochemical sectors that include Air Liquide and Gulf Chemicals & Industrial Oils

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