Vertoro Joint Development Agreement Update

26 May 2023

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

Vertoro Joint Development Agreement Update

Successful first phase of engine testing confirms material improvements in efficiency and emissions reductions with bioMSAR™

Quadrise Plc (AIM:QED), the supplier of innovative energy solutions for a cleaner planet, and biorefinery specialists, Vertoro BV ("Vertoro") have been collaborating to develop a cost-effective supplement or alternative to glycerine in Quadrise's bioMSAR™ fuel. The trials follow the Joint Development Agreement ("JDA") announced on 21 September 2022.

Quadrise has successfully produced stable blends of bioMSAR™ containing up to 40% of Vertoro's crude sugar oil (CSO™) at pilot scale at the Company's research facility. The fuel was subsequently tested by partners, Aquafuel, on Quadrise's Cummins diesel engine using bioMSAR™ containing 18-20% CSO™.

Testing of CSO™ bioMSAR™ when compared with conventional diesel confirmed the following:

·    Engine efficiency improvements of 7% resulting in reduced fuel consumption and lower carbon dioxide emissions, in line with conventional bioMSAR™ results.

·    A reduction in Nitrogen oxides (NOx) emissions of up to 16% and a reduction in carbon monoxide emissions of over 50%, again consistent with conventional bioMSAR™.

·    Negligible visible smoke when running CSO™ bioMSAR™ and bioMSAR™ when compared with diesel.

A further phase of testing is now planned at Aquafuel on bioMSAR™ containing up to 40% CSO™ material. Subsequent testing is also being scheduled on a larger medium-speed diesel engine later in the year. These results and scheduled tests are expected to accelerate the larger-scale trials and the potential use of lower-cost CSO™ bioMSAR™ for the marine and power generation sectors.

Commenting on the update, Jason Miles, CEO of Quadrise, said:

"Quadrise aims to offer ship owners and power producers practical, low-cost decarbonisation alternatives that require minimal modifications and make use of existing fuel supply logistics and infrastructure. The Company is delighted with the test results to date that combine Vertoro's crude sugar oil with bioMSAR™ fuel. CSO™ products are potentially the most price competitive net-zero biofuel solutions for the marine sector. This offers another compelling solution for the marine sector as it looks to accelerate decarbonisation and emissions reduction economically and safely.  It also advances our programme to supply net-zero bioMSAR™ by 2030 by combining a wide range of sustainable biofuels that are soluble in oil or water."

Commenting on the update, Michael Boot, Co-founder and Co-CEO of Vertoro, said:

"We're excited by the progress to date to accelerate the use, within the bioMSAR™ formulation, of our crude sugar oil, which can be produced from sustainably sourced forestry and agricultural residues, as well as end-of-life paper and textile (cotton) fibres. Using sugars in engines directly, instead of fermenting them first to ethanol, opens up a completely new and competitive decarbonisation pathway for hard to abate sectors such as shipping. The increased engine efficiency and more favourable low emissions profile observed in recent engine tests further underlines the potential of this innovative fuel. We look forward to continue our already fruitful collaboration with our partners at Quadrise."

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.