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STWA, Inc. (OTCBB: ZERO) Expands Testing to China

STWA recently announced that it is beginning to test an AOT™ prototype in China.
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Applied Oil Technology™ (AOT™) could prove to be a revolutionary development in oil pipeline technology. When fully implemented, this system will allow pipeline operators to temporarily reduce the friction between oil being transported and the pipeline transporting the oil. AOT is a process that will reduce the amount of energy needed to pump the oil through the pipeline. The viscosity of crude oil within a pipeline creates fluid-drag (a process also known as friction-loss) between the fluid and the pipeline. By reducing the friction loss, AOT will allow pipeline operators' pump systems to use less energy to maintain a constant flow rate, which will directly reduce daily operating costs. AOT has been proven in previous US Department of Energy tests to increase the energy efficiency of oil pipeline pump stations by over 13 percent. The company is now reporting that DOE tests on the second prototype show 40 percent efficiency.

STWA, the developer of AOT and other applied solutions for oil and fuel delivery systems in the multi-billion dollar oil pipeline and diesel engine markets, recently announced that is has begun the first phase of product certification for its oil pipeline efficiency technology, AOT, for use in China.

STWA's commercialization partner in China is Beijing Heng He Xing Ye Technology Development Company (TDC). The two companies are working together to certify the AOT product for use in China. In order to complete Phase I Lab Certification, TDC and STWA are now testing the laboratory version of the AOT at the China Petroleum Pipeline Administration's (CPP) PetroChina Pipeline R&D Center. TDC is responsible for the full costs of implementing the testing and certification of AOT with CPP.

Dr. Rongjia Tao of Temple University, co-developer of STWA's AOT technology, has travelled to China and set up laboratory testing at CPP. Dr. Tao has previously completed similar lab testing of AOT at his own laboratory at Temple University.

After Lab Certification, STWA and TDC will work towards completing full certification. The second phase will involve Loop Pipeline Testing in which an AOT 1.2V unit will be deployed in a field test loop, similar to the testing STWA and the United States Department of Energy conducted at the US-DOE's Rocky Mountain Oilfield Testing Center (RMOTC) in Casper, Wyoming.

"Achieving certification from CPP will allow us to finalize a business plan towards commercialization and sales of this technology in China. TDC has been a solid partner and we are on track for commercialization in the fastest growing energy market in the world. With a March 5, 2011, published Chinese government mandate to reduce energy consumption by 16 percent by 2015, and an ever increasing need for petroleum products to fuel a rapidly growing economy, oil pipeline operators in China may be compelled to implement an innovation like AOT which we believe can significantly reduce energy use at pipeline pump stations, and potentially increase throughput capacities by improving oil viscosity," stated STWA CEO, Mr. Cecil Bond Kyte.