6 December 2023

Quadrise Plc
("Quadrise" or the "Company")

Update re bioMSAR™ and bioMSAR™ Zero Development

Finalised results from recent diesel engine testing identify new pathways towards bioMSAR™ Zero

Quadrise Plc (AIM:QED), the supplier of innovative energy solutions for a cleaner planet, is pleased to confirm the finalisation of results from bioMSAR™ fuel testing completed in November 2023 (the "bioMSAR™ Tests"), further to the Company's announcement of 27 November 2023.

The ultimate objective of the Company's bioMSAR™ programme is to supply the marine and industrial fuel sectors with sustainable biofuels that are lower in cost, more efficient, safer yet simple to use, and which generate the fewest harmful emissions.

The bioMSAR™ Tests were conducted using the Company's 40kW Cummins diesel engine installed at Aquafuel Research Limited ("Aquafuel").

Key highlights of bioMSAR™ Tests

·    bioMSAR™ blends containing Vertoro's Crude Sugar Oil ("CSO™") reduced carbon dioxide ("CO₂") emissions by over 30% when considering increased engine efficiency of up to 7%, and significantly reduced emissions of Nitrogen Oxides ('NOx') and Carbon Monoxide ("CO") when compared with diesel.

·    New bioMSAR™ formulations incorporating biofuels containing waste-based methyl esters were shown to reduce CO₂ emissions by over 45%, increase engine efficiency by up to 7%, and reduce NOx and CO emissions significantly when compared with diesel, providing a new potential pathway to bioMSAR™ Zero.

bioMSAR™ with Crude Sugar Oils and other biomass-derived sugars

Quadrise and biorefinery specialists, Vertoro BV ("Vertoro"), have been collaborating to develop a cost-effective supplement or alternative to glycerine in bioMSAR™ fuel under the Joint Development Agreement ("JDA") announced by Quadrise on 21 September 2022.

The bioMSAR™ Tests concluded in November were completed on blends of bioMSAR™ containing up to 40% of Vertoro's CSO™ as a replacement for renewable glycerine. When compared with conventional diesel fuel, the CSO™ bioMSAR™ demonstrated:

·    Reductions of up to 25% in carbon dioxide ("CO₂") emissions before engine efficiency savings are considered.

·    Additional engine efficiency improvements of 6-7% resulting in reduced fuel use, taking total CO₂ reductions to over 30%, in line with previous bioMSAR™ testing results.

·    Reductions in NOx of around 30%, comparable with 20-45% seen during previous testing with bioMSAR™ on the same engine.  Furthermore, a reduction in CO emissions of over 50% was measured, with negligible visible smoke.

Based on these results, testing of the 40% CSO™ bioMSAR™ and 40% glycerine-based bioMSAR™ on a larger medium-speed Wartsila engine at VTT is scheduled in H1 2024. This additional testing will be performed in parallel with testing of CSO™ in bioMSAR™ at levels above 40% at the Quadrise Research Facility ("QRF") and at Aquafuel.

In addition to the CSO™ development programme described above, work is progressing under the JDA with BTG Bioliquids BV ("BTL") on pyrolysis sugars derived from biomass, and with other prospective partners who can supply C5/C6 sugars at commercial scale.

Large scale adoption is a key customer requirement for marine and industrial applications and the  ability to use water-soluble biomass sugars within the Company's unique oil-in-water emulsion fuels opens up access to abundant bio-energy waste resources. Such waste material cannot otherwise be easily diverted into higher-value applications that use oil-based biofuels or oil-based emulsions.

bioMSAR™ with methyl esters

For the first time, Quadrise have tested blends of bioMSAR™ incorporating B30, a marine biofuel of 30% methyl esters blended with fuel oil, providing a new potential pathway to bioMSAR™ Zero.

B30 methyl esters are currently the most widely available marine biofuels. Engine tests were carried out at Aquafuel to assess engine efficiency and emissions improvements.

In this first phase of testing, bioMSAR™ blends were made with up to 70% B30 and up to 40% glycerine respectively. When compared to diesel, these blends demonstrated:

·    Up to 40% well-to-wake CO₂ reductions based on the carbon intensity of the components, before accounting for diesel engine efficiency savings.

·    Enhanced diesel engine efficiency of 3-7% with a corresponding reduction in fuel costs, further reducing overall CO₂ emissions by up to 45%.

·    Reductions in NOx emissions of 43%-59% and CO savings of 58-76% with negligible visible smoke.

The successful results described above provide a pathway to further reduce the fossil fuel content of our emulsion blends using methyl esters.

The next phase of testing will incorporate higher concentrations of waste-based methyl esters, and ultimately B100 combined with glycerine or biomass-derived sugars.  The plan is to demonstrate a commercial bioMSAR™ Zero product well ahead of the Company's 2030 target. The biofuel samples are being supplied by a major trading company.

These latest results are available on the QED website at:

https://www.quadrise.com/references/biomsar-zero/

Further announcements will be made, as appropriate, in due course.

Commenting on the update, Jason Miles, Chief Executive Officer of Quadrise, said:

"A recent joint declaration by major shipping company CEOs at COP 28 called for an end date for fossil-fuel only powered newbuild vessels and urged the IMO to create the regulatory conditions to accelerate the transition to green fuels. This reinforces the importance of our bioMSAR™ programme in helping to secure the energy transition as we look to meet the needs of our current and prospective clients.

These test results demonstrate that our flexible MSAR® technology platform can produce fuels which can be marketed at scale to the marine and industrial sectors using existing bunkering infrastructure. This will aid these sectors in meeting their climate targets while maintaining vessel operating life.

Quadrise and our commercial partners are excited by these results and we look forward to progressing the testing programme to the next stages, with the intention upon successful testing to offer our first fossil-free bioMSAR Zero™ product at commercial scale in advance of 2030."

Commenting on the update, Michael Boot, co-Founder and co-Chief Executive Officer of Vertoro, said:

"With our proprietary technology we can convert up to 80% of lignocellulosic biomass to CSO™. Using such 2G sugars directly as a sustainable fuel, thereby foregoing the traditional conversion to ethanol, offers a significant cost advantage for end users. We look forward to scaling up production and to continue our joint testing program with Quadrise and their commercial partners."

For additional information, please contact:

About Quadrise

Quadrise is the supplier of MSAR® and bioMSAR™ emulsion technology, fuels and biofuels, providing innovative solutions to reduce energy costs and greenhouse gas emissions today for clients in the global power generation, shipping, industrial and refining industries.

About Vertoro

Vertoro is a Maersk Growth-backed producer of sustainable bio-based platforms, notably crude lignin oil (CLO) and crude sugar oil (CSO™), which are extracted from abundant agricultural and forestry residues using their proprietary Goldilocks® technology. CLO is compatible with methanol-powered diesel engines, while CSO™, using Quadrise' proprietary bioMSAR™ technology, is compatible with conventional diesel engines.

Learn more at: www.quadrise.com