Quadrise inks project development deal with new and existing partners

15th Feb 2024 14:05

(Sharecast News) - Quadrise announced the signing of a project development agreement (PDA) with renewable biofuels specialist BTG Bioliquids and Euthenia Energy Group on Thursday.

The AIM-traded firm said the agreement built on the joint development agreement (JDA) inked on 8 June 2023 between Quadrise and BTL.

It said the aim of the JDA was to explore the feasibility of integrating BTL's fast pyrolysis bio-oil (FPBO) into Quadrise's bioMSAR solution.

Progress under the JDA had been promising, resulting in stable formulations of bioMSAR incorporating FPBO, termed Pyrolytic bioMSAR, successfully produced at Quadrise's research facility.

The newly-signed PDA extended collaboration to include Euthenia, an industrial group specialising in renewable energy projects and transition solutions for a low-carbon economy.

Euthenia's active projects and operations in Europe, North America and the Caribbean positioned it as a valuable partner in advancing sustainable energy solutions, the Quadrise board said.

Under the PDA, a comprehensive testing programme, starting with lab and pilot tests and leading to diesel engine testing, was planned.

Subsequently, a third-party commercial marine vessel trial would be conducted.

Euthenia would use BTL's FPBO and fractionation technologies to process lignocellulosic biomass feedstock at its facilities in Spain.

The extracted sugars would then be blended into Pyrolytic bioMSAR to create a sustainable marine fuel.

Anticipated outcomes of the PDA included accelerated development of Pyrolytic bioMSAR and bioMSAR Zero, catering to global shipping fleets in the Mediterranean.

Additionally, the collaboration was expected to expand global opportunities for BTL's FPBO technology and leverage Euthenia's expertise in bioenergy and decarbonization.

A binding term sheet, expected to be finalised and signed within four months of the PDA, would outline agreements for larger diesel engine tests, the marine vessel trial, and future commercial relationships between the parties.

"Quadrise is pleased with the progress made with BTG Bioliquids to date, and we are delighted to be now working alongside Euthenia under this new tripartite agreement," said chief executive officer Jason Miles.

"Advanced biofuels derived from woody biomass are expected to be very price competitive with net-zero feedstocks.

"Importantly, the extracted sugars are water-soluble and therefore particularly suited for use with our oil-in-water emulsion technology for shipping and industrial applications.

"This latest collaboration is part of our wider plan to commercialise bioMSAR sustainable marine fuel in major bunker hubs, as well as advancing our programme to supply bioMSAR Zero by 2030 to reduce sector emissions of greenhouse gases and other pollutants using existing infrastructure."

At 1335 GMT, shares in Quadrise were down 7.44% at 2.12p.

Reporting by Josh White for Sharecast.com.