(Sharecast News) - Lower-carbon fuel technology company Quadrise said it was on track to achieve its commercialisation targets in an update on Monday, after a board review and "positive engagement" with counterparties over the last month.
The AIM-traded firm said as a result, it would progress with each of its core projects as well as with the development of 'bioMSAR' fuel and its derivatives.
It said it recently met with MSC executive management in Cyprus, and was now working on an agreement covering the LONO trial programme aboard MSC container shipping vessels, and the subsequent commercial framework.
In Morocco, it said an updated material transfer and cooperation agreement with its international chemicals and mining client was now expected to be signed in May, ahead of an 'MSAR' combustion trial that was expected to conclude early in the third quarter.
Across the Atlantic, it said that in Utah, after the signing of a commercial development agreement in April, Quadrise and Valkor had started preparatory steps under the first phase of the agreement to identify target consumers of 'MSAR' and 'bioMSAR' fuel.
Testing with Aquafuel was taking place in the current quarter, meanwhile, and would conclude the 'bioMSAR' engine efficiency optimisation work, with results expected early in the third quarter.
Finally, Quadrise said discussions were underway with a number of candidate sites in Panama and Honduras for 'MSAR' and 'bioMSAR' power plant trials later in the year.
"During the past month, the board and management have conducted an extensive review of the company's projects, operations and business development activities with key clients," said chief executive officer Jason Miles.
"This exercise was undertaken to ensure that our manpower and cash resources continue to be optimally deployed to achieve the company's revenue and shareholder value creation targets.
"A number of very positive discussions and developments have taken place across our core projects over recent weeks."
Miles said those, together with the outcome of the review, re-confirmed that the firm was "well on-track" to achieve its targets.
"The board is of the firm view that the best path to value creation is to progress each of our core projects to address the needs of the energy sector during the transition period, whilst continuing to develop our low carbon fuel options, including bioMSAR fuel and derivatives for a cleaner energy future.
"We are delighted with the progress that the company has made over the past month, with the Valkor agreement signed in April and an updated agreement with our Moroccan client expected to be signed this month as a result of positive and regular engagement with the client team."
Jason Miles confirmed that preparations were underway for the 'bioMSAR' LONO trial following a positive meeting with executive management at MSC in Cyprus, while a new commercial deal with MSC was being progressed "at pace" between the parties.
"Market conditions and the economic climate for Quadrise are increasingly favourable, with potential customers under added pressure to reduce fuel costs, whilst also lowering emissions.
"Fuel oil-diesel product spreads are at very high levels due to the war in Ukraine and global supply constraints."
At 1328 BST, shares in Quadrise Fuels International were down 0.65% at 1.91p.
