Proactive Investors - Quadrise PLC has signed a site license and supply agreement with Valkor Technologies LLC to produce and sell its carbon-reducing technology at the latter’s Utah heavy oil asset.
Quadrise’s MSAR and bioMSAR fuels will be produced and sold from Valkor’s site as part of a US$1.5mln deal, which could produce revenues for the former from August this year.
“We both share the vision that the low sulphur [and carbon] fuels that will be produced in Utah from heavy sweet oil will offer compelling solutions for clients across the industrial and marine sectors,” Quadrise boss Jason Miles commented.
MSAR technology lowers fuel viscosity, reducing required heating during storage and transport, while also creating a more-complete reaction when it is burned.
bioMSAR works in a similar way but replaces more fossil fuel with renewable glycerine made from the likes of vegetable oil and animal fat, according to Quadrise.
Quadrise (LON:QED) will provide engineering support to Valkor for at least two years, with the US oil firm licenced to sell the modified fuel for 10 years under the deal.
The deal is subject to Valkor being granted permits to drill at the Utah site, alongside the receipt of at least US$15mln worth of finance, Quardrise said in a statement.
“This would achieve a significant corporate milestone in providing the first commercial licence supply for the company's technology," the AIM-listed firm added.
Quadrise shares soared 24% to 1.6p following the news.