Quadrise (QED)
Quadrise (QED LN) has signed a Commercial Framework Agreement with OCP, its industrial client in Morocco where extensive trials have been carried out. The agreement demonstrates intent towards commercial production of QED’s products with a focus on MSAR potentially across a number of sites.
With the agreement in place, QED is able to approach a range of HFO suppliers able to deliver sufficient quantities of the underlying nonchemical feedstocks needed to produce MSAR. With the backing of OCP these discussions are likely to be far easier. This commercial agreement is likely to take the form of a licence model which is less capital intensive for QED.
In a further demonstration of OCP’s commitment, it is funding a further commercial trial at a new site; Jorf Lasfar. A 5tph MSAR manufacturing unit will be installed with HFO sourced locally for a 30 day trial. Earlier studies will also be updated based on the latest data and performance results.
QED is making steady progress towards commercialisation with OCP. With a large industrial group such as this it is important that the right suppliers and production partners are found that are capable of reliably delivering on the scale envisaged. This is another milestone towards commercial revenues and shows that positive progress is being maintained across the key commercial opportunities, the successful execution of just one these is likely to be transformational for the earnings’ outlook and QED’s share price performance. We reiterate our BUY recommendation.
Read or download the full report here....