Quadrise Fuels International Plc (LON: QFI)share price fell 22.7% despite issuing a positive operations update that should have triggered a rally higher instead of a decline.
QFI revealed that it had made significant progress in all its operations since raising £6 million in March this year, providing adequate funding for its projects.
The company is currently developing heavy synthetic oils for the shipping industry. Other industries that use heavy oils said that the testing and development of its new low-carbon fuel, bioMSAR™, had made significant progress.
The bioMSAR™ synthetic fuel was successfully tested on 4-stroke engines at Aquafuel and t the VTT facility in Finland. The testing revealed that the fuel could reduce CO2 emissions by approximately 26% compared to marine diesel and lower NOx emissions by over 20%.
Quadrise will now move to test the bioMSAR™ fuel at OEM testing facilities and other combustion applications.
The company also revealed that it is working with MSC Shipmanagement to complete the preparatory work to begin fuel trials onboard its ships. In addition, the company said that it plans to start testing its bioMSAR™ on MSC’s modern 2-stroke engines at OEM facilities.
Quadrise also shipped the equipment for the MSAR® combustion trial to a third-party site in Morocco as it prepares to start the production of 60mt of MSAR® fuel.
The firm also revealed that it had successfully converted samples from the Petroteq Oil Sands Plant (‘POSP’) in Utah, owned and operated by Greenfield Energy LLC, into MSAR® and bioMSAR™ in September 2021.
The positive progress update seemed to have been lost on investors who may have been expecting more from the company given today’s significant drop in Quadrise Fuel’s share price.
Jason Miles, Quadrise Fuels CEO, said: bioMSAR™ continues to exceed expectations in diesel engine testing, and our RDI team are fully engaged in delivering our net-zero energy solutions in advance of 2030. Both MSAR® and bioMSAR™ offer compelling solutions today to support the transition to a low carbon economy in the short term. Our focus for 2022 is to transition our projects in various sectors from trials to commercial revenue generators.”
Long term investors interested in acquiring a stake in Quadrise Fuels may find the current low prices quite attractive.
As a short-term trader, I would be looking to open a bullish position once QFI’s share price crosses back above the 2.818p resistance level.
*This is not investment advice. Always do your due diligence before making investment decisions.
Quadrise Fuels share price.
Quadrise Fuels share price plunged 22.68% to trade at 2.192p, falling from Thursday’s closing price of 2.835p.
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