Shareholder‑Backed Investments Drive Commercial Readiness, Temple Partnership, and High‑Impact Economics for Customers
TOMBALL, TX / ACCESS Newswire / December 23, 2025 / QS Energy, Inc. (OTC:QSEP) today provides an update on the status of its AOT 3.0 commercialization, manufacturing readiness, and Temple University partnership as the Company advances toward full‑pipeline deployment under its previously announced 400‑unit framework.
Building a Pipeline‑by‑Pipeline Commercial Program
Throughout 2025, QS Energy has focused on aligning specific AOT units with specific pipelines, countries, and crude owners, mapping each deployment to a defined manufacturing, financing, legal, operational, maintenance, and security schedule. This work is being done in concert with operators and countries who require clear bottom‑line outcomes in the form of incremental barrels, throughput‑driven cost savings, and carbon credit value in the commitment phase of a 400‑unit order.
In practical terms, many of the pipelines under review require on the order of 10 to 15 AOT units per line to achieve meaningful impact; selling one or two units into these systems would not “light up” the full pipeline or deliver sufficient value to the operator and its investors. QS Energy is therefore structuring programs around full‑pipeline deployments that are capable of producing durable benefits for customers and their stakeholders, rather than pursuing short‑term, partial sales assuming a single AOT unit can provide a pipeline customer a financial benefit, with the goal of helping modernize entire pipeline systems and support broader energy objectives rather than simply providing isolated units. This process is required for the Company’s 400‑unit order with value created in a two‑year project timeline.
Commercial Readiness and AOT 3.0
Over the past year, advances in the AOT 3.0 platform-along with improvements in enabling components, control systems, and manufacturing readiness-have materially strengthened the Company’s ability to deliver business impact at the full pipeline level. A significant portion of the Company’s 2025 efforts and available capital, including support provided through long‑standing shareholders, has been invested directly into AOT technology and the supporting manufacturing and test infrastructure.
As a result, the Company views AOT 3.0 as commercially ready: not only does it reduce viscosity and improve flow, it does so at a scale and reliability that can translate into meaningful revenue uplift, cost efficiency, and sustainability benefits for pipeline operators and crude owners. That is the standard by which QS Energy, its customers, and its country partners are judging success going forward.
“Our investors, our customers, and their country partners are all aligned on one simple point: AOT has to move the needle at the full pipeline level,” said Cecil Bond Kyte, Chief Executive Officer of QS Energy. “With AOT 3.0 and the supporting infrastructure we have put in place, we are now in the strongest commercial position in our history to deliver full‑pipeline solutions that create incremental barrels, operating leverage, and carbon benefits for pipeline operators and crude owners.”
In the Quarterly Report on Form 10‑Q for the period ending September 30, 2025 filed on November 14th, 2025, QS Energy described its ongoing commercial efforts and the opportunities expected to drive additional AOT orders beyond the initial five‑unit order announced on June 20, 2025. Those efforts are being advanced through a disciplined, full pipeline level evaluation with the same counterparties under the previously announced 400‑unit framework, using the integrated financial model set out in the Company’s AOT Financial Modeling Guidelines. Together, QS Energy, its customers, and their country partners are using this framework to optimize a common set of variables-number and placement of units along the line, capital cost, manufacturing and installation timelines, expected viscosity‑driven energy savings, incremental barrels from higher effective throughput, carbon credit value, and security‑related lost‑barrel recovery-so that each fully equipped pipeline delivers clear operating leverage and an attractive payback period and net present value for the full pipeline, its owners, and the host country. The purpose of this process is to ensure that follow‑on orders under the program are structured as long‑term, win‑win‑win partnerships-aligning QS Energy’s technology and activation capabilities with durable value creation for crude operators and their nations-rather than short‑term, transactional sales, in effect moving the relationship from a one‑off purchase order to a long‑term operating partnership.
Temple University: Enduring Technology Backbone
QS Energy’s amended agreements with Temple University, announced earlier this year, mark the latest chapter in a long relationship that has underpinned the Company’s core technology for nearly two decades. The updated framework improves business flexibility while maintaining a shared commitment to ongoing research, protection of intellectual property, and disciplined co‑development of future enhancements.
“As a technology‑driven company, our long‑term value ultimately depends on the strength and protection of the underlying science, and Temple remains a critical partner in that mission,” added Kyte. “This renewed framework allows us to advance AOT commercially while ensuring that the technology continues to be supported by rigorous research and a strong IP foundation, so that the benefits we deliver to customers and host countries are sustainable over time.”
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.
About QS Energy
QS Energy, Inc. (OTC: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.
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Company Contact
QS Energy, Inc.
Tel: +1 844-645-7737
E-mail: investor@qsenergy.com
Sales: sales@qsenergy.com
SOURCE: QS Energy, Inc.
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