- Quadrise
- 16 December 2024 12:35:09
Source: Sharecast
The AIM-traded firm said that under the agreement, it would supply and install a five-tonne-per-hour multifuel manufacturing unit at Sparkle's 50MW El Giral power plant.
It said the unit would produce ‘MSAR’ and ‘bioMSAR’ fuels for a week-long trial on a MAN four-stroke diesel engine, which would generate electricity for the Panama grid.
The move would be Quadrise's first trial on the engine type, broadening its scope in decarbonising energy-intensive sectors.
Quadrise said the trial would be conducted in three phases - a proof-of-concept test, an emissions test, and a feasibility study assessing the technical and economic potential for a commercial rollout.
If successful, the two companies planned to collaborate on a roadmap for replacing fuel oil with Quadrise’s MSAR and bioMSAR fuels at the site, aiming to reduce both costs and emissions.
The agreement would span six months, after which Sparkle would decide on the next steps.
Should the project not progress to a commercial stage, Quadrise said it would remove its trial equipment at its own cost.
“We are delighted to be working with Sparkle Power in Panama,” said Quadrise chief executive officer Jason Miles.
“We expect the tests to demonstrate an economic case for switching the site to our emulsion fuel solutions that can lower costs, emissions and greenhouse gases.”
Miles said it was also a “great opportunity” to gain experience with a MAN Energy four-stroke diesel engine.
“After a successful trial, we look forward to agreeing future commercial supply terms with Sparkle, and a regional supplier, with a view to establishing a facility in Panama - which is a key location for fuel oil sales and marine bunkering activities in central America.”
At 1210 GMT, shares in Quadrise were up 11.38% at 4.5p.
Reporting by Josh White for Sharecast.com.