The China Mail - Made in America, Built for the World: QS Energy Moves Closer to Global Commercialization with AOT Technology

TOMBALL, TX / ACCESS Newswire / February 12, 2025 / QS Energy, Inc. (OTCQB:QSEP) - The global energy sector stands at a crossroads. Nations rich in crude resources are grappling with aging infrastructure, rising transport costs, and increasing regulatory pressure to modernize. At the heart of this transformation is QS Energy, Inc. (OTCQB:QSEP), an American company on the verge of deploying its breakthrough Applied Oil Technology (AOT) at a commercial scale.

The company is in final negotiations on a series of multi-year, government-backed lease agreements that will embed its viscosity-reduction technology into national pipeline infrastructure projects spanning key energy-exporting regions in Southeast Asia, the Pacific, and West Africa. These discussions mark the culmination of years of research, testing, and regulatory engagement, positioning QS Energy to become a cornerstone of modern crude transport economics.

As the United States refocuses on domestic manufacturing and exports, QS Energy is delivering a Made in America solution that is designed, engineered, and built in U.S. facilities, reinforcing the country's position as a leader in energy technology innovation while enabling global partners to optimize crude transport.

Revolutionizing Crude Transport: AOT's Global Impact
Crude oil remains the lifeblood of the global economy, but the methods used to transport it have barely changed in a century. Pipeline networks, long taken for granted, are now being pushed to their limits. Governments are under pressure to increase crude throughput while lowering costs and emissions-without the multi-billion-dollar capital expenditures required for new pipeline construction.

QS Energy's AOT technology provides a solution:

• Increases efficiency - Reduces crude viscosity, increasing pipeline throughput at a minimum of an estimated 10%, allowing more oil to move through existing infrastructure.

• Decreases energy consumption - Reduces operating costs for pipeline operators and national energy ministries.

• Lowers emissions - Helps nations comply with increasingly strict environmental regulations.

QS Energy is at the forefront of a fundamental shift in crude transport economics, enabling energy producers to optimize pipeline efficiency and enhance crude flow capabilities on a global scale.

As the company finalizes agreements, the economic impact of AOT deployment is already taking shape:

• Southeast Asian energy hubs: National energy authorities are embedding AOT into multi-decade infrastructure strategies, enhancing crude throughput and reducing costs.

• Major Pacific energy markets: Negotiating long-term implementation of AOT, reinforcing their positions as key suppliers in global energy trade.

• Leading crude exporters in West Africa: Structuring AOT lease agreements to increase refining capacity and streamline crude transport, positioning themselves for stronger regional trade.

With these agreements in place, QS Energy will not only reshape global crude logistics-it will redefine the economics of pipeline transport for the next decade.

A Decade of Revenue Stability: Structured Lease-to-Own Agreements
Unlike traditional equipment sales, QS Energy has structured its agreements to deliver sustained, predictable revenue streams over a 10-year lease-to-own framework. This model ensures that AOT remains an integrated component of national energy strategies, rather than a short-term equipment purchase.

Key financial elements include:

• Lease & Mobilization Revenue - Each AOT unit is deployed under a long-term lease agreement, ensuring consistent recurring revenue. A mobilization fee is secured at contract execution, allowing for early revenue recognition and financial stability.

• Structured Payment Model - Payments under the lease structure are backed by third-party financial institutions, ensuring QS Energy receives full revenue at deployment, while allowing end-users to align payments with operational benefits and increased crude transport efficiency.

• Integration into National Energy Policies - Governments are embedding AOT within multi-year infrastructure strategies, ensuring it remains a cornerstone technology of crude transport modernization.

With energy security and economic growth tied closely to efficient crude transport, AOT's value proposition extends beyond pipeline operators-it enhances operational efficiency, optimizes crude transport costs, and allows for shared financial benefits as customers realize gains from improved viscosity reduction and increased operating leverage. AOT's value proposition extends far beyond pipeline operators-it directly impacts national GDP, trade competitiveness, and fiscal policy.

"Made in America": AOT's Role in U.S. Manufacturing & Energy Leadership
In an era where onshoring and industrial revitalization are top national priorities, QS Energy's commitment to American manufacturing is more than a selling point-it is a strategic advantage.

• AOT is designed, built, and deployed in the U.S., reinforcing domestic supply chains and advanced manufacturing capabilities.

• By exporting AOT, QS Energy is helping reposition the U.S. as a leader in next-generation energy technology.

• The company's expansion aligns with national initiatives aimed at making America an "Export Champion" in critical industries.

In potential partnership with the United States, QS Energy is preparing to scale production through a dedicated manufacturing and demonstration initiative. The company has structured its global expansion in phases, focusing on increasing production capacity, enhancing supply chain resilience, and positioning AOT technology for widespread adoption in key energy markets. As policymakers push for energy security and trade balance improvements, QS Energy is demonstrating that American-made technology can reshape global markets while securing long-term economic benefits.

Strategic Partnerships & Continuing Discussions with Temple University
Beyond global contract negotiations, QS Energy remains engaged in discussions with Temple University regarding long-term intellectual property and licensing agreements. These discussions-previously mentioned in a QS Energy press release-underscore the company's commitment to reinforcing its scientific and technological foundation while ensuring a sustainable path toward commercialization.

By strengthening this relationship, QS Energy is not only securing its own competitive advantage but also reinforcing its leadership role in viscosity reduction technology, ensuring that AOT remains the global standard for efficiency-driven crude transport.

As previously mentioned, in support of our positive momentum to clean up our final balance sheet items, QS Energy and Temple University are in discussions to rectify our past obligations to our mutual future economic benefit.

Next Steps Toward Commercial Execution
With contracts moving toward execution, QS Energy anticipates the following milestones in the coming months, marking the culmination of nearly two decades of research, field testing, and technological refinement. The company has achieved the hardest part-developing an extremely complex technology and proving it, allowing it to be ready for material commercial success in global crude transport markets.

• Finalization of long-term lease agreements with national energy authorities, state-run companies, and leading corporations in crude transport across key global markets.

• Completion of financing approvals for initial deployments.

• Manufacturing launch for first AOT unit deliveries.

"The United States is once again leading the world in energy innovation, and QS Energy is at the forefront of this movement," said Cecil Bond Kyte, CEO of QS Energy. "With our Made in America AOT technology, we are driving global energy infrastructure modernization, improving crude transport economics, and securing long-term revenue streams that will support our company's growth for years to come."

A Defining Moment for QS Energy
With final contract execution on the horizon, QS Energy is entering a new era-one where technology development gives way to large-scale commercialization, long-term revenue, and global market leadership.

This is not just about technology-it is about economic transformation, industrial resurgence, and American energy leadership.

For further information about QS Energy, Inc., click here and read our SEC filings at https://ir.qsenergy.com/sec-filings. To stay connected, subscribe to Email Alerts at https://ir.qsenergy.com/news/email-alerts to receive Company filings and press releases, and subscribe to our new QS UPDATES email service here to receive timely updates on the Company's latest news and innovations.

Safe Harbor Statement
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please click here for our complete cautionary forward-looking statement.

About Applied Oil Technology
QS Energy's patented Applied Oil Technology (AOT) is a solid-state turn-key system which uses a high volt / low amp electric field to reduce crude oil viscosity. AOT installs inline on crude oil pipelines, operates unattended without interrupting pipeline flow, with full remote monitoring and control. More information is available online here.

About QS Energy
QS Energy, Inc. (OTCQB:QSEP), develops and markets crude oil flow assurance technologies designed to deliver measurable performance improvements to pipeline operations in the midstream and upstream crude oil markets. For further information about QS Energy, Inc., visit www.qsenergy.com

Company Contact
QS Energy, Inc.
Tel: +1 844-645-7737
E-mail: [email protected]
Sales: [email protected]

SOURCE: QS Energy, Inc.

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W.Cheng--ThChM