Quadrise Plc (LON:QED), the transition technology provider for a cleaner planet, has announced its unaudited interim results for the six months ended 31 December 2024 and provides an update on developments during the first quarter of 2025.
FINANCIAL SUMMARY
· £6.5 million (before costs) raised in January 2025 through a successful placing and retail offer, increasing cash reserves to £7.1 million at 28 February 2025 (31 December 2024: £1.4 million, 31 December 2023: £1.7 million).
· H2 2024 loss after tax of £1.7 million (H2 2023: £1.7 million). This includes production and development costs of £0.8 million (H2 2023: £0.9 million) and administration expenses of £0.9 million (H2 2023: £0.7 million).
· Total assets of £5.2 million at 31 December 2024 (31 December 2023: £5.4 million).
BUSINESS SUMMARY
The Company’s strategy is to generate demand within the shipping industry and other sectors, while stimulating the supply of its fuels around global marine bunkering hubs. The Company’s projects are designed to fulfil this strategy, with progress in each of these during the period outlined as follows:
Decarbonisation of shipping: MSC
· In November 2024, a Collaboration and Operational Trial Agreement was signed with MSC and Cargill, committing the parties to complete trials on board an MSC vessel to obtain a Letter of No Objection (‘LONO’) from engine manufacturer Wärtsilä upon success.
· Work is now well underway to prepare the Quadrise trial equipment ahead of installation and commissioning at the MAC² terminal in Antwerp, Belgium in Q2 2025. In parallel, bilateral agreements between Quadrise, and Cargill and MAC² respectively, are expected to be concluded soon.
· The operational trial is planned to commence in Q2 2025. It will comprise an initial Proof of Concept period using MSAR® and then bioMSAR™ for performance baseline tests, followed by 4,000 hours of operation (approximately 6-8 months) on bioMSAR™ in order to obtain the LONO.
Supporting projects: Establishing a global supply network
· Morocco: Preparations are underway for a commercial MSAR® trial at a new site location at OCP’s Jorf Lasfar facility, planned to commence in Q2 2025. OCP and Quadrise are also exploring new fuel applications at other OCP sites. The OCP Letter of Intent is facilitating Quadrise discussions with potential MSAR® suppliers upon successful trial completion at Jorf Lasfar.
· Central America: A Material Transfer and Trial Agreement was signed in December 2024 with Sparkle Power SA in Panama, to trial MSAR® and bioMSAR™ at their 50MW El Giral power plant. Preparations are now underway for the Q2 2025 trial, with a successful trial expected to lead to a Fuel Supply Agreement and to facilitate discussions with other regional power producers who currently use fuel oil.
· Utah: In January 2025, Quadrise and Valkor amended their 2023 Site License and Supply Agreement, with Valkor committing to a $1 million license fee along with staged payments in exchange for the provision of Quadrise equipment and services. During recent months Valkor have optimised pilot processing of produced oil and a sample has been shipped to QRF for testing to progress US marketing.
Product development: bioMSAR™ and bioMSAR™ Zero
· bioMSAR testing on blends including B30 biofuel and 67% B50 biofuel showed improved engine efficiency and reduced NOx and CO2 reductions when compared to diesel.
· Quadrise is advancing joint development with BTG Bioliquids BV and Vertoro BV to develop bioMSAR™ blends using pyrolysis sugars and crude sugar oil respectively. A pilot and engine test programme on bioMSAR™ Zero is planned, with sea-testing expected in 2025 with Focus Motor Yachts.
OUTLOOK
Energy economics, environmental concerns, and tightening emissions regulations continue to drive the case for the adoption of MSAR® and bioMSAR™ fuels. With the International Maritime Organization (‘IMO’) expected to mandate lower greenhouse gas (‘GHG’) intensity fuels and to introduce a global maritime emissions pricing mechanism to achieve net-zero by 2050, Quadrise is well placed to capitalise. The Company’s drop-in fuel solutions enable existing fleets and thermal energy systems to decarbonise with minimal investment, extending asset life while cutting costs and emissions.
The remainder of calendar year 2025 is set to be an important period for Quadrise, with the installation and commissioning of trial equipment at MAC² paving the way for operational vessel trials with MSC and Cargill aboard the MSC Leandra V as a precursor to the conclusion of commercial agreements.
Meanwhile, the commercial trial at OCP’s Jorf Lasfar site and the MAN diesel engine trial at Sparkle Power in Panama are both planned to commence before the financial year-end with each expected to lead to a commercial supply contract upon success. Marketing efforts with low-sulphur, lower-carbon MSAR® are also expected to commence following the lab testing programme on Valkor’s heavy sweet oil samples, with equipment delivery to Utah after the Sparkle trial to enable supply to potential clients.
With strong market fundamentals, tightening regulations, and growing end-user demand for cost-effective decarbonization solutions, the business case for MSAR® and bioMSAR™ has never been stronger.
Jason Miles, Chief Executive Officer of Quadrise, commented:
“H2 2024 and the beginning of 2025 marked a step change for Quadrise as we achieved key milestones, enabling the Company to raise gross proceeds of £6.5 million in January via a successful and oversubscribed placing and retail offer. These funds provide the Company with the flexibility to enhance delivery and prepare for accelerated scale-up of Quadrise technology in marine and other sectors.
“Quadrise’s technology offering is strategically positioned at a crucial moment for the marine industry. New EU regulations and IMO measures will accelerate decarbonisation in the shipping sector, creating new opportunities for efficiency improvements and sustainable biofuels, and the commercial use of MSAR® and bioMSAR™.
“Today the industry needs practical, scalable, and cost-effective solutions for immediate emissions reductions. Quadrise is well positioned to meet this need, offering drop-in fuel solutions for existing fleets with minimal investment and offering extended asset life with reduced costs and emissions.
“Our progress over the period underscores the scale of the opportunity ahead. Our focus now is on project execution in the short term, whilst also preparing for rapid expansion. The board and management are fully committed to this mission, and we appreciate the ongoing support of our shareholders in seeking to shape a cleaner and prosperous future.”
Chair’s Statement
The six-month period ending 31 December 2024 marked a turning point for Quadrise, with key operational milestones achieved. This momentum carried into 2025, with gross proceeds of £6.5 million raised in January via a successful placing and retail offer to provide the Company with the resources required to continue to advance this progress, de-risk operational delivery and prepare for accelerated scale-up of Quadrise technology in marine and other sectors.
Following the fundraise, we welcomed Tony Foster to the board as a non-executive director. Tony brings a wealth of shipping sector experience, networks and growth-company expertise to the table. Vitally, he brings marine regulatory insights and the voice of the customer direct to the Quadrise boardroom. We also welcomed Dr Linda Sørensen to the management team as Head of Marine. Based in Oslo, Norway, Linda brings considerable knowledge of shipping operations and adds management bandwidth to our business development and marine sector marketing activities.
Our technology offering is well-positioned at a crucial moment for the marine industry. In April, the IMO’s Marine Environment Protection Committee (MEPC) is expected to adopt measures which will phase in the mandatory use of fuels with less greenhouse gas (‘GHG’) intensity and introduce a global maritime GHG emissions pricing mechanism. We anticipate that these measures will accelerate decarbonisation in the shipping sector, creating new opportunities for low-carbon fuel and sustainable biofuels such as MSAR® and bioMSAR™. We will monitor developments closely, particularly regarding biomass regulations, to ensure our strategy aligns with emerging compliance frameworks.
With vessel lifetimes often exceeding 20 years, shipowners need cost-effective, scalable solutions to ensure decarbonisation compliance across their existing fleets. We have had markedly increased levels of enquiries from shipowners on the back of the confirmation of our forthcoming trials with MSC and Cargill. We look forward to being able to share further developments once negotiations progress to the agreements stage.
As we set out in our December 2024 Sustainability Report, our bioMSAR™ development programme continues to refine Quadrise solutions to offer low and net-zero carbon solutions that can be scaled without costly port infrastructure upgrades or introducing chemical hazards to onboard operations. Progress with bioMSAR™ Zero (containing 100% biofuel) has been hugely encouraging to date and has further raised awareness of our technology as we expand our business network of potential customers, feedstock suppliers and technology partners.
A further significant milestone was reached in January 2025 with the announcement of an addendum to our Site Licence Agreement with Valkor in Utah, which included the Company’s first commercial licence revenues. This milestone marks the transition of Quadrise to a revenue-generating business, enabling the Company to offer trading updates and results guidance in future and facilitating the publication of more comprehensive broker analysis.
While challenges remain, our progress over the period underscores the scale of the opportunity ahead. Our focus now is on execution-delivering in the short term while preparing for rapid expansion. The board and management are fully committed to this mission, and we are pleased to have you with us on this journey.
Financial Position
At 31 December 2023 the Group had a cash balance of £1.4m. In January 2025, the Group raised additional gross proceeds of £6.53 million, £4.53 million via a Placing and Subscription, and £2.0m via a Retail Offer to existing shareholders. Cash reserves at 28 February 2025 stood at £7.1m.
The Group recorded a loss of £1.7 million for the six months to 31 December 2024 (H2 2023: £1.7 million). This included production and development costs of £0.8 million (H2 2023: £0.9 million) and administration expenses of £0.9 million (H2 2023: £0.7 million).
The basic and diluted loss per share was 0.10p (H2 2023: 0.11p).
The Group’s total assets amounted to £5.2 million as at 31 December 2024 (£5.4 million as at 31 December 2023). In addition to the cash and cash equivalents, this included fixed tangible assets (mainly plant and equipment) of £0.4 million and MSAR® trade name of £2.9 million.
The Group has tax losses arising in the UK of approximately £64.7 million (2023: £62.0 million) that are potentially available to be carried forward against future profits.
Andy Morrison
Non-executive Chair
21 March 2025
Chief Executive’s Statement
The Energy Transition Opportunity
The shipping industry, responsible for 3% of global GHG emissions, faces pressure to decarbonise. The maritime sector energy transition is accelerating, driven by ambitious targets set by the European Union and the International Maritime Organization (IMO). The IMO’s Marine Environment Protection Committee (MEPC) is expected to introduce measures mandating lower GHG intensity fuels and a global maritime GHG emissions pricing mechanism, aiming for net-zero GHG emissions by 2050.
Meanwhile, global trade flows and dynamics are evolving, with proposed U.S. tariffs potentially reshaping shipping patterns and increasing operating costs for Chinese-built ships calling at U.S. ports. If sanctioned, this could impact over 30% of the global shipping fleet and more than 70% of new builds.
Long-term marine fuel solutions such as green ammonia, methanol and hydrogen face safety and infrastructure challenges, as well as high costs. The industry needs practical, scalable, and cost-effective solutions for immediate emissions reductions. Quadrise is well positioned, offering drop-in fuel solutions for existing fleets with minimal investment and offering extended asset life with reduced costs and emissions.
Our patented blending technology produces MSAR® and ISCC certified bioMSAR™ fuels, reducing CO2 and NOx emissions, and energy costs. MSAR® lowers CO2 by up to 10%, while bioMSAR™ achieves over 25% less CO2 than standard marine fuels. Both fuels reduce NOx emissions by at least 20%, and consumer energy costs by 10% compared with comparable marine fuels and biofuels.
Our modular container-size fuel systems are ready for rapid deployment, providing immediate economic and environmental benefits. Each blending module can manufacture both MSAR® and bioMSAR™, offering a lower-cost solution and the opportunity to transition to sustainable biofuels.
Key Project Delivery
The execution of our projects is accelerating. Our focus during 2025 is on the completion of the trials and commercial agreements that will showcase MSAR® and bioMSAR™ technology deployment and entry into the commercial phase with major clients.
Decarbonisation of Global Shipping: MSC & Cargill
The Company’s flagship project with MSC Shipmanagement Ltd (MSC), the world’s largest shipping container fleet operator, aims to demonstrate the viability of Quadrise fuels in decarbonising shipping. The project involves trials of MSAR® and bioMSAR™ fuels on the MSC Leandra V vessel, leading to commercial supply to MSC. During the trial, Cargill NV will supply the fuel oil and sustainable glycerine feedstocks, handle bunkering operations and supply the fuel from the MAC² terminal in Antwerp, Belgium.
Bilateral agreements with each partner are in final form and expected to be concluded soon. Our terminal blending equipment is in the final stages of preparation and testing for delivery and installation in Antwerp next month. The commercial-scale trial is expected to consume around 10,000 tonnes of Quadrise fuels. Once satisfactory progress is demonstrated during the vessel trial, MSC, Cargill, and Quadrise intend to conclude long-term commercial agreements for bioMSAR™ supply.
Quadrise is developing partnerships with other shipping and marine technology companies to accelerate the commercialisation of bioMSAR™ and MSAR®, using its facilities in the Antwerp terminal, and by establishing similar supply points in major marine bunker hubs.
In preparation for scaling the business, Quadrise signed a Collaboration Agreement with Auramarine of Finland in November 2024. Auramarine are known for their international presence and expertise in marine fuel systems. As well as engineering expertise, the collaboration is expected to deliver new sales opportunities, including deployment of the Quadrise patented “blend-on-board” solution for tankers and other vessels that do not operate on regular routes.
Supporting projects: Establishing a global supply network
The availability of MSAR® and bioMSAR™ in major marine hubs will be important for the scaling up of the Company’s commercial decarbonisation strategy.
In Morocco, our project with OCP SA aims to establish MSAR® supply in the Mediterranean. A Commercial Framework Agreement was signed in May 2024 for a 30-day paid trial at OCP’s Jorf Lasfar site, as a precursor to commercial supply. Following changes in scheduling, OCP switched to an alternative production line and kiln for the trial, requiring the relocation of Quadrise equipment in the site. The trial is now expected to commence in Q2 2025 and joint planning is underway.
As part of the May 2024 agreement, OCP provided a Letter of Intent for long-term commercial supply of MSAR® upon successful trial completion. Quadrise has been able to use this to facilitate discussions with potential supply clients and licensees, and shipping companies such as MSC.
In Panama, Quadrise aims to establish a regional supply base for MSAR® and bioMSAR™. An agreement was signed in December 2024 with Sparkle Power SA, a Panamanian power generator, for a trial at its 50MW El Giral power plant. Under this agreement, Quadrise will instal a 5-tonne-per-hour multi-fuel manufacturing unit (“MMU”) to produce MSAR® and bioMSAR™ for a short trial on-site, supplying power to the Panama electricity grid. This marks the first test on a MAN 4-stroke diesel engine, expanding our application experience with this significant engine manufacturer. Preparations are well underway for trial delivery during Q2 2025.
A successful trial expected to lead to an MSAR® supply agreement with Sparkle and further opportunities within the region. The MMU to be used for the Panama trial is then scheduled to be shipped to Valkor in Utah.
Quadrise continues to work towards creating a Southeast Asia supply point.
Upstream: Lower Carbon-Intensive Fuels
Our project with Valkor in Utah, USA, aims to supply low sulphur MSAR® and bioMSAR™ fuels to the marine and power sectors. Valkor have interests in several projects at the Asphalt Ridge site in Utah and expect to be able to provide commercial volumes of heavy oil for conversion to bioMSAR™ and MSAR® later in 2025, to facilitate site trials by potential customers. Upon success, these would then lead to commercial fuel supply.
The oil extracted by Valkor has lower carbon intensity and very low sulphur content, so is expected to comply with International Maritime Organisation regulations for low sulphur marine fuels once converted to MSAR® or bioMSAR™, without the need for carbon-intensive refining.
In January 2025 Quadrise and Valkor agreed to an addendum to the 2023 Site License and Supply Agreement, under which Valkor have agreed to pay Quadrise:
– A license fee of $1.0 million, with an initial payment of $0.35 million and the balance of $0.65 million by December 2025.
– $0.2 million for the supply of a 5-tonne-per-hour MMU, with an additional $0.3 million due upon supply of a full-size 6,000 bpd MMU.
– A quarterly payment of $75,000 from Q2 2025 for engineering, process design, commissioning services, site operations, compliance support and project development support services for a minimum of two years.
During the last six months, Valkor have been optimising their pilot plant operation to maximise the quality of the produced oil, and have recently shipped a representative sample to Quadrise for analysis, and bioMSAR™ and MSAR® formulation. Fuel marketing to marine and power consumers will commence once test results confirm product quality and supply costs. Quadrise expects to share in the profits of future commercial agreements.
bioMSAR™ and bioMSAR™ Zero development
The Company’s pioneering biofuel development programme aims to provide sustainable, efficient, and user-friendly biofuels for the marine and energy sectors, addressing key decarbonisation challenges. The goals include:
– Ensuring adaptability to blend various sustainable biofuel feedstocks.
– Delivering a commercially viable bioMSAR™ Zero (B100) solution before 2030 to comply with future greenhouse gas emission regulations.
In the period under review, significant progress was made:
– Testing bioMSAR™ blends with B30 biofuel showed over 38% CO2 reductions, 3-7% enhanced diesel engine efficiency, and 43-59% NOx emission reductions compared to diesel.
– Developing bioMSAR™ Zero, combining 100% waste-based methyl esters and glycerine, resulted in 85% lower CO2 emissions, 9-10% engine efficiency improvements, and 18% NOx reduction compared to diesel.
– Testing bioMSAR™ formulations with 67% B50 biofuel and 33% water showed 39% lower CO2 emissions, 7-8% engine efficiency improvements, and 29% NOx reduction compared to diesel.
Quadrise is advancing joint development with BTG Bioliquids BV and Vertoro BV to develop bioMSAR™ formulations using pyrolysis sugars and crude sugar oil (CSO™) respectively. A pilot and engine test programme on bioMSAR™ Zero is scheduled, with sea-testing expected later in 2025 with Vertoro and Focus Motor Yachts.
Outlook for 2025 and Beyond
Market and regulatory trends are creating a favourable environment for Quadrise. New environmental regulations, especially in Europe, such as the EU ETS and ‘Fit-for-55’, are expected to boost biofuel use and technology investment in the shipping sector. As conventional biofuels like biodiesel and renewable diesel face growing demand from other sectors, the need for lower-cost, widely available non-conventional biofuels is likely to rise. These trends, combined with the use of cheaper non-conventional waste-based biofuel feedstocks such as glycerine, should enhance the attractiveness of bioMSAR™ for end-users.
The continued development of bioMSAR™ and net-zero fuel solutions opens exciting opportunities to deploy the unique Quadrise emulsion technology, helping partners and clients achieve a cleaner future at a lower cost, and with a shorter time to market.
With an expanding project pipeline and a growing partner network, momentum is building and Quadrise is ready to play a key role in accelerating the global energy transition. We have taken some important steps during the last six months and much more remains to be done. The Quadrise team are thankful for the support of our loyal and enthusiastic shareholders during this exciting time for the Company.
Jason Miles
Chief Executive Officer
21 March 2025
