(Sharecast News) - Quadrise announced on Wednesday that it has entered into a joint development agreement with Licella Holdings to explore the integration of Licella's bio-intermediate into Quadrise's bioMSAR and bioMSAR Zero fuels, marking a potential step forward in the development of cost-effective renewable marine fuels.
The AIM-traded firm said the collaboration aimed to leverage Licella's proprietary Catalytic Hydrothermal Reactor (Cat-HTR) technology, which converts biomass residues into a high-energy bio-intermediate with significantly lower carbon intensity than fossil oil.
Initial lab-scale testing of the Cat-HTR bio-intermediate would be conducted at Quadrise's research facility, with positive results expected to pave the way for diesel engine tests within 12 months.
Subject to technical success and agreement between the parties, subsequent third-party testing in marine diesel engines would follow, with the goal of achieving commercial vessel trials in 2026.
Licella, based in Australia, was described by Quadrise as a global leader in hydrothermal liquefaction technology.
It said its advanced HTL process uses high-pressure, high-temperature water to convert non-food biomass into bio-intermediates suitable for refining into low-carbon fuels.
Quadrise added that its bioMSAR platform, which blends renewable components with its proprietary emulsion fuel technology, offered the potential to significantly reduce emissions in hard-to-abate sectors such as shipping.
"Fuels derived from biomass are potentially the most price competitive net-zero biofuel solutions, and HTL technology has been identified by the Mærsk Mc-Kinney Møller Center for zero carbon shipping and others as one of the most viable production pathways for marine biofuels," said chief executive officer Jason Miles.
"This collaboration aims to expand our range of feedstocks for bioMSAR and bioMSAR Zero as lower cost and lower emission alternatives to conventional biofuels."
At 1057 GMT, shares in Quadrise were up 1.03% at 3.92p.
Reporting by Josh White for Sharecast.com.
Quadrise (QED)
