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Replies to post #51176 on QS Energy Inc (QSEP)
we plan to build smaller scale test units which could be commercialized for new markets such as truck, ship and rail crude oil offloading. These smaller-scale units would allow us to test different materials and different design concepts at a much lower cost than full-scale testing and development. Although the crude oil midstream pipeline market would remain our top long-term target, parties both domestically and internationally have expressed interest in the potential benefits in truck, ship and rail offloading. As noted in an article titled “Crude Loves Rock’n’Rail – Heat It! Bitumen By Rail (Part 2)” (Fielden, Sandy. 2013b. RBN Energy LLC. www.rbnenergy.com/crude-loves-rocknrail-bitumen-by-rail-part-2), there are costly challenges to transporting heavy crude oil by rail. In his article, Fielden estimates heavy crude costs $5.00 more per barrel than light crude due to its high viscosity; an added $3,000 per railcar load at an average 600 bbl/car. While the midstream pipeline market is likely our largest target market, there has always been a plan to expand the application base on our AOT technology. Given the reduced cost, and shortened lead times associated with smaller equipment, we believe these markets should be strongly considered.
