OTE Corporation is a renewable power generation company with proprietary technology producing fossil-fuel free electricity and drinkable water using Ocean Thermal Energy Conversion (OTEC) and Seawater Air Conditioning (SWAC). Our Company’s robust pipeline of global OTEC and related SDC projects each have projected gross revenues from $400- $800m, and brings environmental and humanitarian benefit.
Company to attract accredited investors under the Securities and Exchange Commission new rule to implement a JOBS Act requirement that lifts the ban on general solicitation or general advertising for certain private securities offerings
Ocean Thermal Energy Corporation (OTE) signed a Memorandum of Understanding with Kongsberg Devotek for the joint development of sustainable clean energy systems worldwide based on Onshore and Floating Ocean Thermal Energy Conversion (OTEC) and Inland Geothermal Power Systems.
Ocean Thermal Energy Conversion (OTEC) is a way of generating clean, base-load (24/7), renewable energy, without the use of fossil fuels, by using the temperature differential between warm ocean surface water and cold deep water, typically in the sub-tropical and tropical regions of the world.http://www.youtube.com/watch?v=EmLbl_a3whs&feature=share&list=UUYTqkk2Ts17luR28A--CHrA
In a closed cycle OTEC system, two large pipes draw water from the ocean: a warm water pipe containing the surface water, which is heated by the sun everyday; and a cold deep water pipe containing the chilly water from near the ocean floor. The heat from the surface water is used to boil a working fluid with a low boiling point (such as ammonia), creating steam, which turns a turbine generator to produce electricity. The chill from the cold deep water is then used to condense the steam back into liquid form, allowing the system to continuously repeat this process, fueled by the sun’s daily heating of the surface water.
Yes. Over $300 million has previously been spent in Research & Development to prove OTEC, mostly by the United States Department of Energy in the 1990s. With that DOE funding, a land-based demonstration OTEC plant was successfully operated in a series of trials from 1992-1998, proving that OTEC can produce clean baseload (24/7) electricity, without the use of fossil fuels. That successful demonstration plant was built and operated on the Big Island of Hawaii at the Natural Energy Laboratory of Hawaii Authority (NELHA). Today at that NEHLA site, the deep cold water pipes are still operational (having withstood category IV hurricane, earthquake and numerous tropical storms) and have given rise to thriving businesses, including multiple water bottling plants as well as sustainable fish-farming.
In two ways. First, while current renewable technologies such as solar and wind have an important role to play in the future of global energy supply, they are intermittent, unlike OTEC, which is base-load, providing a constant 24/7 supply of energy. Wind and solar obviously work only when the wind is blowing or the sun is shining. OTEC, on the other hand, works 24/7 and will continue to do so for as long as the sun heats the surface waters of the world’s tropical and sub-tropical oceans every day. With the global population growing exponentially and industrializing, more base-load energy is essential to meet those needs. Second, and equally important, OTEC is much bigger than just baseload renewable energy. It can also be used to produce great volumes of potable water and sustainable fish-farming. Thus, OTEC’s unique package of energy, water and food…the basic necessities for all humans… means OTEC can provide communities around the world with sustainable independence based upon their most abundant local resource: the ocean.
OTEC is now ready for large scale commercial development as a result of 2 changing factors in the last 20 years. First, technical advances in the offshore oil industry, many of which are applicable to deep cold water pipe technology for OTEC, mean small (5-20MW) land-based OTEC plants can now be built with off-the-shelf components, with minimal technology/engineering risks for plant construction and operation. In fact, the authoritative US Government agency NOAA issued a 2009 report concluding that, using a single cold water pipe (CWP), a 10MW OTEC plant is now “technically feasible using current design, manufacturing, deployment techniques and materials.” Second, high oil prices have made OTEC electricity pricing increasingly competitive, particularly in many tropical and sub-tropical locations where electricity prices, based almost entirely on imported fossil fuels, are now in the exorbitant range of 40-60 cents/kwh. In addition to providing cheaper and more reliable energy, OTE offers its customers long term energy contracts with pricing caps. This eliminates exposure to the volatility of rising oil prices, which are threatening to cripple many economies, particularly given tumultuous events in the Middle East raising the likelihood of spiking oil prices.
In conjunction with OTE’s business model of building, owning and operating OTEC plants globally, OTE will also build, own and operate Seawater District Cooling (SDC) systems which use cold, deep ocean water as the non-polluting refrigerant for large scale air conditioning needs, such as resorts and hotels. In non-scientific terms, an SDC plant might be thought of as “half an OTEC plant”…meaning that, while an OTEC plant has two pipes (one warm water pipe and one cold water pipe), an SDC plant has only one pipe…the cold water pipe, which brings up the chilly deep ocean water. This cold deep water is used as the non-polluting refrigerant for air-conditioning, reducing electricity usage by 80%-90% when compared to conventional AC…saving the typical customer millions of dollars in electricity bills over the contract’s life.
Rapidly increasing global energy demand and steadily climbing energy prices, combined with Ocean Thermal Energy Corporation’s world-leadership position in OTEC and SDC, explain why OTE now has multiple projects in the Atlantic, Pacific and Indian Oceans, with executed agreements (ranging from an Energy Services Agreement to various signed Memoranda of Understanding) to move forward with 5 separate projects, and advancing discussion with numerous other major potential customers. All of these projects are in accordance with OTE’s essential business model to build, own and operate OTEC and SDC facilities across the globe.
Many OTEC and SDC customers world-wide have expressed to OTE a sense of urgency to engage OTE to help them immediately move away from fossil fuel dependency, particularly in light of tumultuous events in the Middle East, which threaten spiking oil prices. In the words of one Energy Minister expressed directly to OTE executives, “Please help free my country from the tyranny of oil.” And another utility top executive remarked, “if oil goes back to $140 per barrel and stays there for any sustained period, it will spell economic catastrophe for this community.” Reflecting this strong sentiment, many governments around the world have committed to significantly increasing the production of renewable energy, including by mandated goals.
Given the huge economic incentives for SDC customers, this global market is itself an immense international market, which helps to diversify any OTEC-related business risks, in light of the fact that there are currently operational and commercial SDC facilities around the world. Moreover, OTE has found that an SDC project can be an excellent entrée into the OTEC markets in many locations.
Yes. With its stellar technical team, and unique IP position, OTE operates as the "brains behind" OTEC and SDC location-specific designs, engaging world-class EPCs (large construction contractors) such as DCO Energy (US) and DCNS (Paris, France) to build SDC and OTEC plants to OTE's specifications.
OTE has assembled an experienced management and advisory team, together with world-class technology and engineering partners. OTE’s team includes both Dr. Ted Johnson, formerly Director of Lockheed Martin’s Ocean Energy Division with an annual turnover of hundreds of millions of dollars, where he focused on OTEC; and Dr. Stephen Oney, who worked as part of the group conducting R & D leading to the successful Hawaii land-based demonstration OTEC plant in the 1990s.
This impressive team has attracted steadfast support from high-stature leaders on OTE’s Advisory Board, including: Ed Rendell (former Governor of Pennsylvania); Roy Bernardi (former Acting HUD Secretary for President George W. Bush); Chris Carney (former Pennsylvania Congressman & Homeland Security Member); Dr. Howard Hanson (Scientific Director, S.E. National Marine Renewable Energy Center); and Bill Roberts (former Legislative Director, Environmental Defense Fund).
The primary limitation of OTEC is geographic. This technology is ideally suited for tropical and subtropical regions of the world, where more than 3 billion people live. However, in some circumstances, OTEC may use waste-heat to operate outside of these regions.
There are two potential environmental impacts of OTEC, both of which are easily addressable. First, in order to maintain the balance of the ocean ecosystem in areas where OTEC is used, the water taken from the ocean into the OTEC plant must be returned to the ocean at a depth and temperature near the ambient temperature. This concern can be readily addressed. It is important to bear in mind that OTEC does not involve the release of any pollutants into the ocean. The system merely harvests ocean water and returns the water from where it came. The second concern is for the risk of marine life becoming trapped in the piping system. While this risk is virtually non-existent for the cold water pipe resting on concrete collars on the seabed, where there is minimal marine life; the risk is much more pronounced regarding the warm water pipe. This risk is also readily remedied by:
◦Adequate meshing/screening, mitigating any possible damage to aquatic life and reducing the chance of secondary damage to the food chain.
◦Appropriately slow flow rates of the water, enabling marine life to avoid even nearing the screening.
Though the above two environmental concerns can be readily addressed based upon OTE’s extensive technical research and commitment to responsible stewardship, it is nonetheless important to stress that OTE’s conclusions are strongly supported by the fact that OTEC has received considerable support in the environmental protection community. One case in point: a recent report by Henry Curtis, Executive Director of Life of the Land, a leading non-profit environmental advocacy group in Hawaii. The report is entitled "Life of the Land's Energy Independence for Hawaii (2030): An Integrated Approach To Economic Revitalization in a Culturally and Environmentally Sensitive Way." The report’s executive summary states that "With this document, Life of the Land lays out a plan where each island would be 100% energy self-reliant by 2030. The chief baseload energy would be Ocean Thermal Energy Conversion (OTEC).”
Equally compelling is the fact Ocean Thermal Energy Corporation has attracted many stalwart environmental advocates, including Advisory Board Member Bill Roberts (former Legislative Director, Environmental Defense Fund).
Data from the National Renewable Energy Laboratory (NREL) website (www.nrel.gov) indicates that at least 68 countries and 29 territories are potential candidates for OTEC Power Systems. Escalating fuel prices and an unstable market for oil has prompted many nations and states to look at renewable energy solutions (often by legislative mandate). There is an estimated 7 terrawatts of potential OTEC net power production available worldwide. The estimated OTEC market size for tropical and sub-tropical regions is expected to generate almost US$2.0 trillion in revenues over the next 25 years, according to the NREL.
OTE personnel participated in OTEC research and development at the Natural Energy Laboratory of Hawaii Authority (http://www.nelha.org), where the U.S. Department of Energy supported a land-based OTEC experimental facility. Operating from 1992-1998, the plant produced net power, proving that OTEC could provide viable clean energy without the use of fossil fuels. Meanwhile, Dr. Ted Johnson, our Senior Vice President and Head of OTEC Programs, was previously a 25-year veteran of Lockheed Martin Corporation where he directed the Ocean Energy Division that built ‘Mini-OTEC’, the first net power-producing floating OTEC System.
In the next 5 years, our goal is to sign energy agreements to build, own and operate 3 OTEC/SDC systems worldwide generating an estimated US$2.0 billion in revenue over the life of those contracts while improving the lives of millions of people worldwide.
OTE is the only company to have developed land and ocean based OTEC power and water production cycles for the US Government and whose personnel have the hands-on experience of helping to develop proprietary technology. Our experience allows us to design, build and deploy systems that are more efficient and much less costly to construct and operate. Only a small handful of potential competitors have the financial ability to develop the technical expertise to enter OTEC development and production with Lockheed Martin (LM) the most prominent of them all. However, LM is a technology company, not an independent power producer (IPP) like OTE, and has no plans to enter the IPP field. Meanwhile, OTEC International, LLC (Abell Foundation), Makai Engineering (Hawaii), Xenesys Inc. (Japan), do not have the hands-on OTEC experience and knowledge OTE possesses and are years away from deployment. In 2009, LM subcontracted to OTE’s subsidiary for technical expertise related to OTEC work.
Over twenty-five years of experience with OTEC systems has provided us with unrivaled know-how and understanding of the technologies needed for optimum designs and most advantageous economics of these systems. Teaming with world class Engineering, Procurement and Construction (EPC) companies and project financing partners, OTE designs, builds and operates commercially ready, cost-effective, scalable power producing OTEC and SDC systems with no emissions and fixed energy pricing that offers the customer outstanding long-term energy cost savings. Our technologies are suitable for deployment in parts of the world where we can alleviate expensive electricity prices, a lack of drinkable water and a shortage of homegrown food.