In shares magazine today, apologies if it's already been flagged: bags of potential, for now loss-making, gold to replace heavy fuel oil with MSAR manufacture from waste oil, unlikeHFO , it doesn't require refiner to use valuable distillates, typically trade at a discount to oil, margin per barrel of crude can be shared between the refiner – Quadrise and the end-user, shares of retreated could be interesting as a recovery heading into 2015, confirmation the product works. To the next age of certification the fuel needs to completed 4000 hours of sea trials a target to be hit in the second or third quarter of 2015. Elsewhere a trial thermal power station in Saudi is aiming to complete by the end of June 2015 and the group is secured(10th of November), a supply deal for manufacturing plant with Danish specialist engineer ENH engineering. Nothing new just good to see it getting the magazine pages/publicity
upside, and given the progress so far, the risks are reducing with each step forward.
Quadrise Fuels (QFI) is technically in the oil producers sector but is very different to most of its peers! This AIM listed company has basically found a way of turning water into fuel, although obviously there is a lot more to it than just that. I remember briefly holding shares in this one at around the 5p level a few years back and taking a 20% profit soon afterwards seemed like a good idea at the time, but it then went on to hit highs of over 50p as it proved the technology and its commerciality. Basically its MSAR emulsion fuel oil business found a way of using water instead of expensive oil based diluents to turn heavy oil into low viscosity fuel and in the process came up with something with superior combustion features. The company really took off following a tie up with shipping giants, Maersk, and now has joint development agreements in place and is ultimately planning to commercialise Marine MSAR, which has been trialed on the Maersk fleet and has led to confirmation of ‘proof of concept’. The fuel is now expected to be commercially available during 2015, and the company has already approached a number of refineries – including in Saudi Arabia and the Americas – about converting their heavy residues into MSAR, and this would also have applications in industries such as power plants and desalination facilities which tend to rely on heavy fuel oil currently. Trials are being run at refineries in these countries during 2015, and in the case of Saudi Arabia could lead to widescale projects, if the trials with a refinery and nearby thermal power station prove successful. In recent weeks Quadrise has also announced an exclusive agreement with ENH Engineering to supply the emulsion manufacturing plant that would be needed to process the refinery heavy residues into MSAR. In terms of the technology and its applications, there is far too much to go into here – and some of it you’d probably need a PhD in petro-chemical engineering to understand anyway! But what really matters is that the concept works, it is on the verge of becoming commercial, and the company has some heavy-weight partners involved. Obviously as good as all that sounds you need to consider the financial side of things as well, and during the last year up to June 30 the company made a post-tax loss of £5.9 million, but much of that was due to impairment and amortisation of intangible assets. This also means that the company now has nearly £35 million in tax losses that it can offset in the future. At this stage, and prior to commercial roll-out, I’d expect it to be making a loss anyway, and on the positive side it is debt free and had cash reserves of over £11 million. The share price is now close to the lowest level that it has been in over a year, at around 28.75p, and as long as you’re taking a longer term view and holding until post-commercialisation, then I can see significant u
Well TW is right to be bullish here, fancy selling out when he did
AE, just noticed "try to influence" , apologies manifest and manifold. GLA especially manana !
Lots of press today
Wonder why ;-) http://www.shareprophets.com/views/9220/commercial-roll-out-in-2015-offers-significant-upside-for-quadrise Details in http://quadriseshareholders.freeforums.org/viewtopic.php?f=2&t=16
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