16 December 2024

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

Material Transfer and Trial Agreement with Sparkle Power SA, Panama

Quadrise Plc (AIM: QED), the transition technology provider for a cleaner planet, is pleased to announce the signature of a Material Transfer and Trial Agreement (the "Agreement") with Sparkle Power SA ("Sparkle"), a thermal power producer in Colón, Panama that uses fuel oil today.

Under the Agreement, Quadrise will supply and install trial equipment at Sparkle's 50MW El Giral power plant, including a 5 tonne per hour Multifuel Manufacturing Unit. MSAR® and bioMSAR™ fuel will then be produced for a week-long diesel engine trial on site, to supply power to the Panama electricity grid.

The trial will be performed on a MAN 4-stroke diesel engine, a first for Quadrise on this engine type, broadening the Company's application experience for the decarbonisation of energy intensive sectors.

Summary of Agreement

The purpose of the Agreement is to carry out a proof-of-concept programme and an emissions test on a 4-stroke engine. Following this, the Parties will evaluate the technical and economic feasibility of the commercial application of MSAR® and bioMSAR™ at the site.

To this end, Sparkle and Quadrise intend to work together, via a joint project team, to develop a detailed and phased MSAR® and bioMSAR™ roadmap to confirm the commercial use of Quadrise fuels instead of fuel oil to reduce costs and emissions.

The Project will be based on a MAN 4S 18V 32/40 Engine at Sparkle's El Giral power plant in Colón, Panama and will proceed on the basis of three sequential parts:

·      Part one - the proof-of-concept test,

·      Part two - the emissions test,

·      Part three - a report studying the technical and economic feasibility of commercial rollout.

The Agreement is for a term of six months and shall expire after the term or after all obligations of the Parties have been performed. If Sparkle decides not to proceed with commercial supply, Quadrise will remove the trial equipment from site at the Company's cost.

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

Jason Miles, CEO of Quadrise, commented:

"We are delighted to be working with Sparkle Power in Panama. 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. This is also a great opportunity to gain experience with a MAN Energy 4-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."

Jose Castillo, General Manager of Sparkle, commented:

"We are excited to be working with Quadrise on this new project for Panama. Sparkle Power is committed to becoming more fuel efficient and conserving the environment by reducing emissions. This is implemented in Sparkle's corporate policy through the use of more environmentally friendly fuels and especially biofuels, all in accordance with government policies that are being implemented for environmental conservation in Panama. We hope that the MSAR® and bioMSAR™ will achieve the expected results to continue towards a commercial implementation in the country."

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About Quadrise Plc

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

Learn more at: www.quadrise.com

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LinkedIn: @Quadrise Plc

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About Sparkle Power SA

Sparkle specialises in electric power generation, transmission and distribution, and is committed to providing reliable energy solutions to its customers. The company operates from its principal 50MW plant located in Colón, Panama, which provides thermal power generation capacity to the national electricity grid run by ETESA. The plant operates on fuel oil to meet electricity demand from the national network balancing scheme, providing stable and reliable energy supply to Panama.

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.