Synthetic Fuel Firm: Expect a Change in Pace Toward Commercial Operations

Quadrise says its expansion has put new pressure on management and finance.

Synthetic fuel oil company Quadrise Fuels International plc (Quadrise) says it is moving into commercial production with the help of new investment.

"We expect a change in pace to build progressively through 2014 as the Company transitions from pre-commercial development to substantive commercial operations with our key clients and partners in the marine and power sectors," said Executive Chairman Ian Williams.

The company reports that it reduced its loss after taxes from continuing operations to £1.80 million ($3.0 million) for the six months ended December 31, 2013, down from £3.35 million ($5.5 million) for the same period of 2012.

As of December 31, 2013, Quadrise had cash reserves of £2.13 million ($3.5 million), compared with £4.02 million ($6.6 million) one year earlier.

Since the end of the reporting period, the company has reported raising $10.7 million before expenses in March 2014.

"Broadening the project base has de-risked the business, and it has also placed new pressures on management and on our finances," Williams said.

"The additional equity funding will enable management to adjust resources to meet these requirements and to take a pro-active stance in selective acceleration of project lead times where prudent and warranted."

Quadrise, which is working with A.P. Moller-Maersk (Maersk) on the use of its fuel, MSAR, for shipping, said the funds will help it deploy manufacturing units for the fuel more quickly and fund research and development and intellectual property protection.