Quadrise — Making waves

Quadrise (AIM: QED)

Last close As at 02/04/2025

GBP0.05

−0.23 (−4.64%)

Market capitalisation

GBP82m

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Research: Industrials

Quadrise — Making waves

Quadrise raised £6.5m (before costs) in January through a placing and retail offer, increasing the company’s cash reserves to £7.1m as of 28 February 2025. Management stated these funds will support Quadrise through to revenues and positive cashflow generation, expected from mid 2026 based on forecast project timelines.Post-results, Quadrise announced the signing of a joint development agreement with Australian-based sustainable fuels pioneer Licella Holdings. Both parties will seek to progress the use of Licella’s catalytic hydrothermal reactor bio-intermediate as a potential cost-effective renewable feedstock for bioMSAR and bioMSAR-zero. Additionally, Quadrise signed a services supply agreement with MAC2, under which MAC2 will provide jetty space, utilities, permits and ad-hoc support services during the marine vessel trials on board the MSC Leandra V, expected to commence in Q225.

Written by

Andrew Keen

Managing director, head of content, energy and resources, industrials

Alternative energy

QuickView

2 April 2025

Price 4.85p
Market cap £86m
Price Performance
Share details
Code QED
Listing AIM

Shares in issue

1,764.7m

Net cash/(debt) at 31 December 2024

£1.4m

Business description

Quadrise is the innovator and global supplier of disruptive fuel blending technology that produces a synthetic, enhanced fuel oil called MSAR and a biofuel called bioMSAR. The technology provides a low-cost and cleaner energy for marine, power and industrial applications.

Bull points

  • bioMSAR produces better CO2 and NOx emissions reductions and cost savings than existing biofuels.
  • Adoption of MSAR improves economics of downstream and upstream operations, while providing lower-cost fuel for consumers.
  • Adoption of Quadrise’s technology reduces costs after operations and emissions in marine bunker, industrial and power markets.

Bear points

  • Economics of adoption dependent on oil and competing biofuel product spreads.
  • Ability to progress trials potentially affected by many factors outside Quadrise’s control.
  • Size of company limits number of projects that can be progressed at any one time.

Analysts

Andrew Keen
+44 (0)20 3077 5700
Harry Kilby
+44 (0)20 3077 5700

Quadrise is a research client of Edison Investment Research Limited

MSC trial update

Quadrise signed a collaboration and operational trial agreement with MSC and Cargill in November 2024. Management confirmed that work is well underway preparing Quadrise’s trial equipment for installation and commissioning at the MAC2 terminal in Antwerp, Belgium, in Q225. The operational trial, a key step towards marine commercialisation, is set to start in Q225 with an initial proof-of-concept period using MSAR and then bioMSAR for performance baseline tests, followed by 4,000 hours (c 6–8 months) of bioMSAR operation. This is required to obtain a letter of no objection from Wartsila, the engine manufacturer, enabling commercialisation.

Supporting projects update

Management expect both the commercial trial at OCP Group’s Jorf Lasfar site (Morocco) and the MAN four-stroke diesel engine trial with Sparkle Power in Panama (Central America) to commence before Quadrise’s financial year-end (30 June 2025). In January 2025, Valkor agreed to pay a staged licence fee totalling US$1m, along with further staged payments in exchange for the provision of Quadrise’s equipment and services. Valkor have now optimised its pilot processing and shipped samples to Quadrise for testing to progress US marketing.

Tightening regulation inducing a growing market

The International Maritime Organisation is expected to mandate lower greenhouse gas intensity fuels and introduce a global maritime emissions pricing mechanism to achieve net zero by 2050. Quadrise is well positioned to capitalise on this growing opportunity through its drop-in fuel solutions, which enable existing fleets and thermal energy systems to decarbonise with minimal capital required, extending asset life while reducing both costs and emissions.

Source: Company accounts. Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Historical financials

Year end Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) DPS (p) P/E (x)
6/23 0.0 (3.0) (3.1) (0.21) 0.00 N/A
6/24 0.0 (2.6) (2.8) (0.16) 0.00 N/A

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