Replies to post #17241 on QS Energy Inc (QSEP)

[Shrimclim]

Moorea9 - WHAAAAAAAT? This paper is FAB NEWS!!!

From the paper:

AOT ROI ANALYSIS (see paper for detailed calculations)

•With a conservative assumed increase in flow of 10-20% the capital cost of AOT to fit out a pipeline is $100 million to $90 million respectively. (NB this is conservative as power savings above were 28% to 75%).

•The pipeline owner benefits from increased toll revenue as they charge per barrel transported.

•The extra toll revenue the pipeline owner can earn from the extra flow rate is $100 - $200 million per annum.

•This implies that AOT creates a Return On Investment of 97% to 222% per annum for the customer.

•STWA Revenue - Just one pipeline represents potential revenue for STWA of $100 million.

•Apply this model across hundreds of pipelines globally and you can immediately see that AOT could generate billions in revenue for STWA.

•With such enormous revenue potential STWA is clearly a very valuable company and certainly worth billions.

•For new pipelines they can be built smaller in diameter and with less powerful pumps, reducing capex, so AOT is also highly attractive for new pipelines.

•Clearly STWA is undervalued by at least a factor of 10X.

GLTA!!!

[zerosum]

ALL LONGS - THIS IS A MUST READ. THE ADDRESSABLE MARKET FOR THE AOT HAS EFFECTIVELY DOUBLED based on Tao's recent findings from the AOT test on the Keystone Pipeline. The author of this review of Tao's 7 page paper that will be presented tomorrow to The American Physical Society is a scientist and an expert in his field.

Article - https://www.dropbox.com/sh/j0qj5i3lb5hqy6y

Exerpt:

REVIEW OF PAPER AND
COMMERCIAL IMPLICATIONS

Below is a summary of the key new ef
fect identified in the paper.

For a certain reduction in viscosity,

Under laminar flow, the power required reduces in
direct proportionto viscosity.

Under turbulent flow the power required DOES NOT reduce in direct proportion to viscosity.

It is more like 1:2

Reference
–
Tao Page 1

“For example, to increase the flow rate by 30% we only need to increase the pressure by 30% for laminar flow, but for a turbulence flow we need to increase the pressure by 58.3%;”

Therefore if AOT only reduced viscosity if would be BEST for upstream laminar pipelines and LESS attractive for midstream turbulent flow.

However what is shown in the paper is that AOT not only reduces viscosity but also suppresses turbulent flow, making it laminar and more efficient for a given flow rate.

I’s much more than just being about the percentage benefits.

The change massively expands the potential market of AOT within
the midstream market (to a much larger scale than has been appreciated previously).

[alkalinesolution1]

Question/note on the new Tao material

I also read Tao's paper, titled "Suppressing turbulence and enhancing liquid suspension flow in pipelines with electrorheology." (Note, someone put it on Scribd here: http://www.scribd.com/doc/257562536/Suppressing-Turbulence-and-Enhancing-Liquid-Suspension-Flow-in-Pipelines-With-Electrorheology)

It has some very fascinating and new information in it. I'm confused about why it's only being published now — anyone got any ideas? The basic point that it shows, that the AOT works to suppress turbulence perpendicular to flow, seems to me simply amazing and incredible. It would add a whole other aspect to the revolutionary nature of this technology and make the AOT that much more significant.

However, my question or remark is simply this: the discussion in that paper is entirely in reference to the tests on RMOTC and at Daqing in China. I don't believe either of those was at the scale of the 36'' Keystone that TCPL recently finished testing. Will the behavior be the same in that kind of extremely high pressure large scale environment, where there are hundreds of barrels of oil being pumped every minute? I have no clue. I don't know if we can draw a straight line extrapolation from this data and real world tests.

It seems that Tao was able to get some insight and knowledge into the Keystone test, however, so perhaps the technical results there will be forthcoming.

Anyway, if the stuff in that paper applies to large scale deployments, then this technology is more of a game changer than I thought. The significance would be quite breathtaking actually.