Quadrise (QED) , a suppler of clean energy solutions, announced a new agreement with Moroccan fertiliser producer OCP. Quadrise is known for its MSAR and bioMSAR emulsion technology, fuels and biofuels that help its clients reduce energy costs and greenhouse emissions.
Under the new agreement, Quadrise and OCP will commence commercial discussions with 3rd parties for MSAR supply to OCP. Simultaneously, the two companies have agreed to work together on a paid-for commercial trial at OCP's Jorf Lasfar site in Morocco.
The agreement is for a one-year term and can be mutually extended. Commencing from the date of the agreement, QED will approach suppliers who can produce MSAR to meet OCP's demand. To facilitate these discussions, OCP has signed a Letter of Intent to enter into a commercial agreement with a company that can supply MSAR to OCP under license from QED.
Per the agreement, QED will supply and and install equipment, including a 5-tonne/hr MSAR manufacturing unit, to emulsify locally available heavy fuel oil using MSAR technology. A 30-day trial will then be carried out on a kiln at the Jorf Lasfar site. Execution of any commercial supply agreement is conditional upon successful results of this trial.
Quadrise also said it would provide an update on the technical, economic, and feasibility study that was previously launched in June 2022 to convert the Jorf Lasfar site in Morocco for the consumption of MSAR.
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A milestone agreement for Quadrise and its MSAR emulsion technology, bringing it to commercial scale and expected to yield significant long-term revenues. OCP is a leader in plant nutrition and the world's first producer of phosphate-based fertilisers, now seeking major suppliers to commercialise Quadrise's proprietary technology. Aside from revenue visibility and further validation of MSAR, the agreement will establish a strategic supply route for QED's fuels in the Mediterranean. Markets welcomed the news, sending QED shares 9% higher in early trade.
Further good news is QED's announcement that it would advance the feasibility study launched 2 years ago to convert the Jorf Lasfar site for use of MSAR, as the site will now be used to run a 30-day MSAR combution trial before an agreement can be signed with a supplier. Successful trials were already completed last year, so no issues are expected this time around.
Under the agreement, Quadrise and OCP will immediately start discussions with prospective suppliers, so investors should stay tuned for more news in the coming weeks.
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