QFI.L Share News (QFI)

(Sharecast News) - Heavy fuel oil alternative developer Quadrise Fuels updated the market on the expected conclusion of initial testing of its 'bioMSAR' product on Friday, and announced that it had signed a collaboration agreement with UK-based renewable power company Aquafuel Research.

The AIM-traded firm said that under the agreement, Quadrise and Aquafuel would work together to jointly promote commercial glycerine supply, Aquafuel power solutions and bioMSAR projects across various applications and regions.

It said Aquafuel was the industry partner currently testing bioMSAR on a standard Cummins diesel generator owned by Quadrise, at Aquafuel's UK test facility.

The testing, first announced on 15 December, was expected to be completed shortly, with a final report on the outcome expected in January.

Quadrise described bioMSAR as a low-carbon alternative to heavy fuel oil that combined renewable glycerine with MSAR fuel technology to reduce carbon dioxide emissions by between 20% and 30%, as well as nitrous oxide and particulates.

Under the agreement, Quadrise and Aquafuel would combine their respective expertise and networks to jointly develop and promote Aquafuel power solutions, bioMSAR projects, and commercial joint projects that could also incorporate glycerine supply across a range of applications and regions.

In doing so, Quadrise said the parties would allocate the required internal resource at their own cost, adding that Aquafuel had agreed that it would, in the future, pay fees for Quadrise services provided in relation to Aquafuel projects successfully developed under the agreement.

Quadrise said it had similarly agreed to pay Aquafuel fees for its services in relation to bioMSAR projects successfully developed under the agreement.

The amount of any future fees payable by either party would be agreed on a project-by-project basis, ahead of the other party's involvement.

"We have been very impressed with the Aquafuel team during the current testing of bioMSAR at their UK facility, which has yielded promising results," said Quadrise chief executive officer Jason Miles.

"The tests are being carried out on a standard Cummins diesel generator and this is the first time that an MSAR formulation has ever been run on a high-speed, small-bore engine designed for diesel and adapted for glycerine."

Miles said early results were "promising", with the company "looking forward" to receiving the final test report in January once testing was complete.

"We believe that through our collaboration with Aquafuel and other stakeholders, we can simultaneously accelerate the development of bioMSAR fuel and expand the market for Aquafuel's power solutions through our global network."

At 1028 GMT, shares in Quadrise Fuels International were up 1.21% at 2.1p.