The Quadrise Fuels International Plc (LON: QFI) share price surged 20% after releasing the latest testing results of the advanced testing of its bioMSAR™ fuels on its Cummins high-speed 4-stroke diesel engine.
The company that develops clean heavy biofuels said that the latest testing round followed the results announced in February 2021. The firm started with a baseline test to establish if the February tests could be replicated, which were pretty successful.
The baseline results indicated that overall engine efficiency could be improved by 3%, while Nitrogen Oxide (NOx) emissions by over 20% compared to diesel fuel. After confirming that the baseline results could be replicated, Quadrise proceeded to the advanced tests.
Quadrise revealed that the engine efficiency improved 13% using advanced injection timing, resulting in lower fuel consumption and carbon dioxide emissions.
The company highlighted that the higher engine efficiency did not result in higher NOx emissions and combustion temperatures, as is typically the case.
The tests conducted at Aquafuel Research Ltd’s UK test facility revealed that it was possible to lower the inlet temperature to the same levels at which diesel burns.
The levels of NOx emissions were further reduced by 30%, a 45% improvement to the emissions produced by diesel.
Investors cheered today’s news, which shows that Quadrise’s bioMSAR™ and MSAR™ fuels are cleaner and more efficient than the heavy diesel fuels used in the marine industry.
Quadrise Fuels shares have fallen 15.38% amid a broad selloff in the UK and global stocks markets as central banks embrace tighter monetary policies to stem rising inflation.
QFI shares look relatively undervalued at current prices. They are down 37.46% in the past 12 months despite the company's significant milestones, including its partnership with global shipping company MSC.
Jason Miles, Quadrise Fuels CEO, said: “We are pleased to obtain these outstanding results for bioMSAR™, providing a further technical endorsement of the potential of the fuel. The higher engine efficiency and lower emissions evidenced by Aquafuel's testing are highly attractive features for all future clients of bioMSAR™, particularly those with ambitious decarbonisation targets. These results support our plans for larger-scale bioMSAR™ testing this year and ultimately commercialisation.”
I like QFI as a company given its innovative heavy fuel products that could have a massive market, given the rules about using cleaner fuels in the shipping industry are set to come into effect soon.
*This is not investment advice. Always do your due diligence before making investment decisions.
Quadrise Fuels share price.
Quadrise Fuels share price rallied 20% to trade at 2.40p, rising from Friday’s closing price of 2.00p.
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