QS Energy's AOT Crude Oil Pipeline Optimization Technology Under Consideration for High Volume Offshore Marine Terminal Facility
SANTA BARBARA, CA -- (Marketwired) -- 01/10/17 -- QS Energy, Inc. (the "Company") (OTCQB: QSEP), a developer of integrated technology solutions for the energy industry, today announced that it has been asked to expand its product line by developing a high volume AOT (Applied Oil Technology) viscosity reduction pressure vessel called the AOT-XL to improve flow efficiency within an existing crude oil offloading marine terminal. An earlier feasibility study had concluded that to accommodate the operational flow rates of this customer, a complicated and overly expensive deluge of standard AOT units would be required, which would have surpassed the available space for installation. The solution was to design the AOT-XL, a customized system capable of handling extreme flow rates while substantially reducing the complexity of installation and footprint necessary to position the system as requested.
This collaborative project involves a trial assessment and then full and potentially customer sponsored final engineering of the AOT-XL. This specially configured, high volume AOT system was designed upon request by the management team of a trusted, long-term collaborative partner within the midstream sector of the domestic energy industry. Intended for very high volume pipeline environments, the AOT-XL will be fabricated to meet a target of 25,000 barrels per hour capacity (600,000 bpd). Initial laboratory tests of the efficacy of AOT functionality on one of the customer's crude oil samples at Temple University has also shown favorable results. Following a series of site visits by Mr. Bigger and the QS Energy product development team, the Company is currently working towards the goal of collaboratively engineering the custom AOT-XL vessels, in conformity with strict ASME requirements, for an installation and further evaluation.
Mr. Bigger added that the opportunity to customize AOT technology for the marine tanker offloading facility was a direct result of QS Energy's involvement at the 2014 Pipeline Energy Group Conference, an invitation-only industry meeting held annually. Executives and engineers from many of the industry's leading crude oil producers and transporters first learned of AOT during the Company's presentation entitled, 'New Innovations in Flow Assurance for Today's Energy Renaissance.' Following preliminary discussions concerning a potential collaborative development effort, a series of meetings of both teams occurred at QS Energy's offices, Temple University's Department of Physics, and the customer's Gulf of Mexico pipeline infrastructure, including their off-shore platform.
"This multi-year collaborative process encompassed numerous months of in-depth technical discussions, multiple meetings and several layers of communication between executives and engineers involved in the ownership, operation and continued expansion of this world-class hydrocarbon transportation hub," said Mr. Bigger.
Originally developed in partnership with scientists at Temple University in Philadelphia, Penn., AOT is the energy industry's first crude oil pipeline technology using low-wattage electrical fields to optimize the performance of midstream pipeline systems. A current installation on a high volume commercial pipeline recently provided the Company with its first SCADA (Supervisory Control and Data Acquisition) output using a standard AOT vessel. The upcoming AOT-XL was reconfigured from the latest version of the AOT and conceptualized through QS Energy's collaboration with Temple University researchers, and the Company's supply chain and manufacturing partners.
The standard AOT design is comprised of an ASME VIII 1440 psi rated vessel, measuring approximately 7 feet long by 7 feet, six inches wide by 30 feet in height and weighing 33,000 lbs. Each unit is equipped with a 36-inch ID pressure vessel and 20-inch flanges and is rated for a flow capacity of over 6,000 bbl/hr. The new AOT-XL design will use a skid that can be designed as small as approximately 9 feet long by 9 feet wide (skid designs are customized depending on customer's choice), and is 36 feet or greater in height and weighs 52,000 lbs. (excluding structural steel). The AOT-XL design includes a 60-inch OD pressure vessel with 36-inch inlet/outlet flanges and is rated for approximately 25,000 bbl/hr. of flow per unit. The skid has been reconfigured to allow tight placement of the AOT system and provides for the substantially larger individual AOT-XL to use just slightly more floor space as the standard AOT design. As with the smaller standard AOT, any number of the AOT-XL vessels can be installed in parallel to accommodate the customers flow rate.
"We are hopeful this newly designed system will have widespread applications in a variety of high volume environments that are hindered by space constraints and limited installation infrastructure," Mr. Bigger commented. "As an example, three AOT-XL vessels will provide a flow volume capacity previously requiring upwards of 20 standard AOT's which would otherwise have carried a capital cost of approximately $20MM. In addition to the greater economic benefit to our customer through better throughput, we have reduced our installation footprint by approximately 70%. Upon determination that we are ensuring sufficient margins to protect the interests of our shareholders, we have submitted a proposal for this particular AOT-XL installation at a cost of between $4MM to $5MM."
Mr. Bigger added that a highly-detailed cost/benefit analysis of the AOT-XL system has been delivered to the customer for presentation at the next asset management meeting of their stakeholder companies for potential funding of the project. The meeting of this consortium, which jointly shares ownership of the offloading facility, is scheduled for late first quarter 2017.
If approved, the funding of a single standard-AOT installation in the coming months would provide for a "slipstream" unit, a mandatory and vital first phase. Among the provisions of this installation is that QS Energy will capture real-time measurement of viscosity and temperature values which will provide data necessary to the ongoing design process of a very complicated full-scale AOT-XL deployment across the customer's marine and land-based assets.
"Having access to operational metrics gathered by our inline sensors is critical to ensuring our technology's ability to accommodate the customer's batch processing operations and to maximize the performance of the AOT-XL moving forward," Mr. Bigger stated. "We expect to analyze the movement of close to 40 hydrocarbon products during this installation, furnishing us with insight into the AOT-XL's ability to treat crude oils with a wide range of API gravity."
"As with each of our customer engagements, our objective is to play a pivotal role in creating cleaner and greater efficiencies in the movement of crude oil within the existing infrastructure of this entity," Mr. Bigger commented. "The selection of AOT technology as having the potential to streamline their operations was based on our ability to meet the unique challenges of delivering meaningful flow improvement within the space restrictions of their assets and massive flow rates. We are hopeful and believe that this will lead to the provisioning of additional custom AOT-XL units on their off-shore terminal and sea-to-shore pipelines."
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer
About AOT™ (Applied Oil Technology)
Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its demonstrated efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators motivated to improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents what we believe to be the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.
About QS Energy, Inc.
QS Energy, Inc. (OTCQB: QSEP), provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.QSEnergy.com
QS Energy Announces Increase in Commercial Deployment Opportunities for AOT Viscosity Reduction Technology Due to Ongoing Partnership with Temple University
SANTA BARBARA, CA -- (Marketwired) -- 10/18/16 -- QS Energy, Inc. (the "Company") (OTCQB: QSEP), a developer of integrated technology solutions for the energy industry, today announced it has seen an expansion of opportunities for the commercialization of AOT (Applied Oil Technology) crude oil pipeline optimization system as a result of its Viscosity Reduction Laboratory Testing Program offered in collaboration with Temple University. Developed in partnership with Temple University and entirely fabricated in the United States, AOT is an industrial hardware system which lowers the viscosity of unrefined oil through the use of low wattage electrical fields (electrorheology) to improve flow while in transit via pipeline.
"Due to a higher volume of crude oil samples being submitted by producers and transporters for laboratory viscosity testing in the wake of last year's sharp drop in oil spot prices, we have experienced a surge in interest in potential deployment scenarios for AOT," stated Greggory M. Bigger, QS Energy Chief Executive Officer and Chairman. "Over the past three quarters we have been asked to table proposals for AOT systems for high volume commercial pipelines and offshore marine loading facilities. We attribute this increase in potential deployment opportunities to the excellence of the testing protocols at Temple University and the resultant precision of the AOT Case Study Analysis proposals we deliver to prospective customers."
Laboratory testing of crude oil samples submitted by pipeline operators and petroleum producers has been jointly offered for several years by QS Energy and Temple University to the industry to determine potential viscosity reduction benchmarks and economic benefits for prospective customers based on the latest AOT performance capabilities. All tests are conducted under the supervision of Dr. Rongjia Tao, professor and chair of physics at Temple University and widely recognized as the leading expert in the use of electric and magnetic fields for industrial applications.
Since the development of the value engineered next generation AOT system in February 2016, numerous 3- to 5-gallon crude oil samples have been analyzed in the Temple Department of Physics laboratory, providing data used for hydraulic analysis by QS Energy engineers which helps calculate potential flow volume increases, operational cost savings, and rate tariff income benefits.
"Our partnership with Temple University has been a valuable asset to our company and to the energy industry at large," Mr. Bigger stated. "Since we joined forces with Dr. Tao and Stephen G. Nappi in 2007 to explore the commercial applications of electrorheology to affect the mechanical behavior of hydrocarbons, together we have advanced the science of improving performance of crude oil pipelines and brought a high value technology to market. We could not be more pleased with the research and development involvement of their Department of Physics and the worldwide patents and licensing of AOT technology QS Energy shares with them solely and exclusively in perpetuity."
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer
About AOT™ (Applied Oil Technology)
Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its demonstrated efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators motivated to improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents what we believe to be the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.
About QS Energy, Inc.
QS Energy, Inc. (OTCQB: QSEP), provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.QSEnergy.com
Veteran Pipeline Infrastructure Engineer Shannon Rasmussen Joins QS Energy To Lead Global Commercialization of AOT Flow Assurance Technology
HOUSTON, TX -- (Marketwired) -- 06/30/17 -- QS Energy, Inc. (OTCQB: QSEP), a technology solutions provider for the energy industry, today announced it has named Mr. Shannon Rasmussen as its new Vice President of Engineering, adding a key industry veteran who, along with new CEO Jason Lane, will help lead commercialization efforts for QS Energy's Applied Oil Technology (AOT) -- an integrated system that improves critical operational efficiencies for pipeline operators worldwide.
As co-founder and senior principal of Colorado-based energy consulting firm Citrine Energy, Mr. Rasmussen comes to QS Energy with nearly two decades of experience in the power and oil and gas sectors, with deep expertise in engineering design, project and program management, construction, compliance, and quality.
Mr. Rasmussen comes into this new role at QS Energy with critical knowledge of AOT and its demonstrated ability to reduce the viscosity of crude oil -- helping operators increase flow volume, reduce reliance on diluents, relax viscosity requirements, and meet carbon emission reduction goals while decreasing operating costs and improving pipeline efficiency. As a consulting engineer for TransCanada in 2014, Mr. Rasmussen experienced AOT operations first hand; in a similar role for QS Energy over the past two years, he helped spearhead critical design and fabrication improvements that have resulted in significant gains in AOT operating efficiencies, while achieving stable operations on a high-volume high API crude oil pipeline.
"I have seen first-hand what AOT can do for pipeline operators, and why it's critical to their long-term success," says Mr. Rasmussen. "I am thrilled to have the opportunity to expand on our initial success with AOT, help continue to improve and streamline it, and work with pipeline operators to bring this technology to wide adoption across the industry." Adds CEO Jason Lane: "Shannon's on-site experience with AOT, along with his deep industry expertise and contacts, makes him an ideal partner to help QS Energy bring these critical advances to an industry that needs them."
In addition to his recent on-site consulting with QS Energy, Mr. Rasmussen has served as a project - program manager and consultant for TransCanada Pipelines across a range of compliance-related projects including Keystone, Gulf Coast, KXL, and Energy East Pipelines. Mr. Rasmussen holds a B.S. in Mechanical Engineering from the Colorado School of Mines, is a registered Professional Engineer (PE), and a certified Project Management Professional (PMP). Mr. Rasmussen, along with his wife and three children, are looking forward to relocating to the Houston area.
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer
About Applied Oil Technology
Developed in partnership with scientists at Temple University in Philadelphia, Applied Oil Technology (AOT) is the energy industry's first pipeline flow improvement solution for crude oil, using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of engineering teams at numerous independent oil production and transportation entities interested in harnessing its demonstrated efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators motivated to improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents what we believe to be the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.
About QS Energy
QS Energy, Inc. (OTCQB: QSEP), provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading university and crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors.
INCORRECT. This is why TRANSCANADA is showing "CONTINUED INTERESTS" in the PROVEN AOT. This is ABSOLUTELY TRUE. From the Business Plan. AOT Case Study. This is clearly in reference to TransCanada & the PROVEN AOT.
QS Energy / ATS RheoSystems Joint Testing of Commercial Beta Deployment on Mid-Continent High Volume Pipeline
In September 2014, a four-vessel AOT system was installed on a newly constructed, high-volume North-South, mid-continent pipeline under the terms of an Equipment Lease-Option to Purchase Agreement. Fabricated by QS Energy supply chain partners in 2013, the solid-state, 110-ton AOT system was shipped by freight truck and positioned on a gravel substrate on the equipment’s self-contained steel skid-mount at a pumping station of the customer’s choosing.
This commercial deployment and beta test opportunity was the result of extensive collaboration between QS Energy and executives and engineers from multiple producers, pipeline operators and supply chain partners. Following installation, pressure testing and calibration, the AOT system was interfaced with the extant SCADA (supervisory control and data acquisition) to provide a detailed overview of the system’s performance, including real time monitoring of flow rates, back flow pressure and other relevant metrics. Preliminary tests were conducted over a period of several weeks, under a variety of operating conditions and multiple grades of crude oil and diluent mixtures.
During the preliminary test cycle, it was determined that the electric field within the AOT pressure vessel was insufficient to fully treat heavy crude oils at flow rates expected under full-scale operating conditions. The power supply provided with the AOT device had been specified and approved by Temple University based on infrastructure and operating parameters, as well as on laboratory tests performed on crude oil samples provided by the pipeline operator. Detailed investigation verified the AOT power supply had been manufactured to, and was operating at, specifications as provided by Temple University, but was generating an electric field approximately 10% of that required to optimize treatment under full-scale operating flow rates 16 . It was further determined that replacing the AOT power supply with a more powerful unit would likely correct the situation. However, due to time constraints, all parties agreed to go forward with the testing using the installed power supply.
In its most extensive testing during this deployment, the AOT was operated under full-scale commercial operating conditions over a two-day period. Operations were overseen by the pipeline operator and QS Energy engineers, while engineers from ATS RheoSystems, a division of the CANNON Instrument Company (“ATS”), were on-site collecting data for subsequent analysis. Oil samples were taken from the pipeline both before and after treatment by the AOT. Viscosity measurements were conducted on three grades of heavy crude oils over the two-day testing period. Data collected and analyzed before and after AOT treatment demonstrated a decrease in viscosity of approximately 23 percent 3 hours after treatment, and a decrease in viscosity of approximately 11 percent 13 hours after treatment; 22 hours after treatment, the crude oil had returned to its original pre-treated viscosity.
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