QS Energy Secures Major Order for Multi-Year Deployment of Innovative AOT Technology in Crude Transport

QS Energy Receives Initial Order for Multi-Year AOT Technology Deployment

TOMBALL, TX, June 20, 2025 – QS Energy, Inc. (OTCQB: QSEP), a leading innovator in crude oil transport technology, has secured a significant order for the deployment of its Applied Oil Technology (AOT) in Southeast Asia and Africa. This milestone represents an important step in QS Energy’s mission to modernize and decarbonize crude transport infrastructure globally.

DELIVERING ON A PROMISE OF INNOVATION AND SUCCESS

The initial order consists of five AOT units and is part of a larger, multi-phase initiative supported by a government-backed program in collaboration with VIPS Petroleum. This contract, valued at $25 million, is expected to be fully paid this quarter and marks the beginning of a potential $2 billion framework for the delivery of up to 400 units in Southeast Asia and Africa. The remaining 395 units will be rolled out in milestone phases, adhering to a payment structure of 50/25/25, which will ensure robust cash flow for QS Energy starting in Q3 and Q4 of 2025. AOT’s proven effectiveness has facilitated connections with energy ministries and national oil companies. This deal is made possible through VIPS Petroleum, QS Energy’s exclusive regional distributor, contracted in 2024.

Cecil Bond Kyte, CEO of QS Energy, commented: “This order is a testament to our technology’s capability to revolutionize crude transport. With the backing of VIPS and support from ministries and operators, we are establishing a new global benchmark for efficiency and sustainability.”

THE TECHNOLOGY TRANSFORMING CRUDE TRANSPORT

AOT has been independently validated through peer-reviewed studies, field trials, and testing at Temple University. It addresses one of the oil industry’s longstanding challenges: moving oil more efficiently. Since the era of Rockefeller’s Standard Oil, the industry has struggled with viscosity, drag, and energy loss. AOT effectively reduces viscosity by 10% or more using electric fields, which in turn lowers pump pressure and reduces energy costs. Designed for robust, continuous operation, each AOT unit undergoes rigorous testing to guarantee long-term performance.

MADE IN AMERICA, BUILT FOR THE WORLD

QS Energy proudly designs and manufactures AOT systems in the United States, supporting American workers. Our partners include:

– Industrial Screen and Maintenance, boasting over 56 years of experience
– Precision Urethane, a family-owned business recognized as a leader in urethane for more than 55 years
– ReadyFlo, a specialist in turnkey ASME pressure vessels
– Forward-MFG, experts in custom electronics and sensors

Their commitment has been instrumental in making this historic deal a reality.

EXPANDING GLOBAL PARTNERSHIPS AND FINANCING

This agreement positions Southeast Asia and Africa as pioneers in modern crude transport and job creation. The success of this model is prompting discussions for expansion into Australia, the Middle East, and other regions. QS Energy and VIPS Petroleum are also finalizing additional agreements to replicate this framework and broaden AOT’s global deployment.

SECURE IMPLEMENTATION AND COMPLIANCE

QS Energy is dedicated to maintaining full transparency through regular updates and strict adherence to U.S., Southeast Asian, and African standards. The program is supported by milestone payments and top-tier financial assurances, minimizing risk. Insights gained from previous deployments inform a comprehensive execution plan to ensure that each phase adheres to deadlines and quality standards.

OTHER CONSIDERATIONS

QS Energy will benefit from a share of the increased oil flow achieved through AOT, fostering long-term, performance-based revenue.

LOOKING AHEAD

With deployment already in progress, QS Energy is committed to accelerating its role in the energy transition. The cost savings and environmental advantages offered by AOT position it for significant global impact.

For further details about QS Energy, Inc., please visit our SEC filings at [https://ir.qsenergy.com/sec-filings](https://ir.qsenergy.com/sec-filings). To stay updated, subscribe to our Email Alerts at [https://ir.qsenergy.com/news/email-alerts](https://ir.qsenergy.com/news/email-alerts) and join our new QS UPDATES email service for timely information on the latest news and innovations from the company.