Business
QS Energy Provides Business Update for the First Quarter of 2019
QS Energy Provides Business Update for the First Quarter of 2019.
About this update from Qs Energy, Inc.
[{"type":"text","content":"On Track to Complete Installation of AOT Commercial Demonstration Equipment in May and Commence Testing in JuneHOUSTON, TX / ACCESSWIRE / May 17, 2019 / QS Energy, Inc. (the "Company" or "QS Energy") (OTCQB: QSEP), a developer of integrated technology solutions for the energy industry, today provided a business update for the first quarter ended March 31, 2019.Jason Lane, Chief Executive Officer and Chairman of the Board, commented, "We are pleased to report that we made significant progress advancing our Applied Oil Technology (AOT) commercial demonstration project. Although we experienced minor delays in April, our equipment has been installed and we remain on track to complete commissioning of the demonstration project by the end of May. As a result, we expect to begin operations in June and should have initial data and preliminary results within the next few weeks of commencement, which will be a major milestone for the Company as we rapidly advance toward our goal of full-scale commercialization.""Having learned from difficulties experienced in pervious commercial test installations, we deliberately chose not to structure our agreement with the pipeline operator as a revenue event for the Company in the form of an equipment sale or a lease, but rather a true collaboration under which we will continue to own and test the equipment while the pipeline operator expects to benefit from AOT viscosity reduction. For this reason, we offered to pay for outside engineering, site preparation and installation and in January, put up a $500,000 good-faith deposit to cover these costs. As a result, our AOT equipment has been installed at a site we believe is well suited for both testing and long-term operations. The selected pipeline should experience measurable benefits from viscosity reduction, and heavy crudes typically transported through this site are expected to respond well to treatment by AOT. While we will not be disclosing pipeline operator's confidential information, we will be collecting AOT test results and analyzing operational benefits. We look forward to sharing this AOT-specific data and analysis with prospective customers, as well as updating our shareholders as the project progresses." "We are also highly encouraged by the strong industry interest in this demonstration projec...