Quadrise in landmark Saudi fuel agreement

The London-based company said yesterday that Saudi’s state oil giant Saudi Aramco approved the use of Quadrise’s technology in its refineries under a partnership deal it struck with Saudi-based company Rafid Group.

“This is a major milestone,” said Quadrise chairman Ian Williams.

Shares in the company gained 53 per cent, giving it a market capitalisation of about £67m, as analysts at Westhouse said the deal signalled “tangible progress” and provided it with access to one of the world’s largest fuel oil markets.

Quadrise’s technology can produce a lower-cost version of heavy fuel oil, made when high-sulphur tarry residue left after the distillation of crude is blended with low-sulphur diesel, which in Saudi Arabia is used for power generation.

A special chemical process means Quadrise can produce fuel oil without using diesel, saving on costs, and potentially making power generation in Saudi Arabia cheaper, something which the company said can offer the kingdom “major economic benefits” as it currently imports some of the diesel used to make fuel oil.

The agreement with Rafid means that Quadrise’s technology is a step closer to being put into a Saudi refinery, following which the company said it expects a larger scale programme to use its expertise in refineries across the country.