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HomeMy WebLinkAboutCOM 0551.001 2010-2012SUBMITTED BY: OTEC INTERNATIONAL LLC RE: Comm. No. 551 harnessing Power From the Ocean `it Ci r E. = international uc • $ h :6 IN 0. �a <aaa Comm. Ne. _5,5/ . / zioz Ref. ToPrsusajitSC. Ref, Dote AN 31 2O 111 1 ' $mite 2300 • Baltimore, MD 21202 www. OTECI.com • 410- 547-1300 Harnessing Power from the Ocean International LLC An Abell Foundation Company OTEC International LLC (OTI), which has substantially advanced the technology of ocean thermal energy conversion (OTEC), is honored to have earned the ABS (American Bureau of Shipping) first -ever "approval - in- principle" for a floating renewable energy plant. The approval -in- principle, issued in May 2011, attests to both the experience and the sound ocean engineering of the OTI plans. The approval -in- principle comes while OTI is negotiating with Hawaiian Electric Company for a power purchase agreement that would install a 100 - megawatt plant offshore of O`ahu, the island chain's center of population. OTI has also executed a term sheet with the Caribbean Utility Company for a 25- megawatt offshore facility for Grand Cayman. With 11 patents pending, OTI has its eye on being first - to- market and the global leader in OTEC power generation. OTI does not depend on government contracts or financing. OTEC makes use of the vast solar energy stored in the upper layers of the ocean. The concept is simple — heat is extracted from the warm surface water and used to boil ammonia, which turns a turbine to drive a generator to produce electricity. Deep, cold ocean water cools the ammonia back to liquid to be heated again in a 24/7, 365- days -a -year cycle. The devil, of course, is in the engineering details. OTEC is a process that has been developing for 130 years, but today's advanced technology and engineering, combined with the precarious global fossil fuel situation, make it most timely. It was tested and proven technically feasible in the early 1980s. "This [OTI] concept combines proven offshore principles with off - the -shelf power technology and proprietary innovations, all assembled in a unique way," said Ian Simpson, Director of Offshore Technology and Business Development, ABS Americas. ABS sets standards of excellence in marine and offshore classification. OTI's design has been evaluated by seven independent engineering reviews. The OTI Technical Team integrated principles of thermodynamics, heat transfer, electro- mechanics, fluid dynamics, kinematics, 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410- 547 -1300 hydrostatics, hydrodynamics and bathymetrics, to attain a robust and ready technology. With a commitment to economic viability, the team merged commercial best practices, off - the -shelf components and industry- standard practices with OTI's unique system to deliver the most power for the lowest capital cost, that is, the lowest $ /kWh (net). The process is energy intensive, so it is the net gain of power —that is, what is produced above the needs to produce it —that is the critical factor. Once this net gain is achieved, the cost to produce OTEC becomes competitive. There's no fuel cost, just operating costs. Building an OTEC plant is capital intensive, and the OTI Technical Team is constantly applying best -value engineering practices to design, planning, manufacturing, operations, logistics and decommissioning - the entire life cycle. Heat In Boiler Vapor W Turbine Out ork Condenser Genet at< Work In Roder Feed NM, OTEC - generated electricity is what utilities call "firm power," a constant source of electricity that doesn't fluctuate as wind and solar do. Utilities can rely on the power for a stable grid. Privately funded OTEC International LLC (OTI) is owned by The Abell Foundation, Inc., a philanthropic group based in Baltimore, which also invests in social objectives, such as alternate energy. Abell acquired exclusive license to the work of OTEC pioneers J. Hilbert Anderson, Sr. and James H. Anderson Jr. and since 2000 has been refining OTEC technology to move to OTEC commercialization. OTI's customized components are designed to efficiently convert thermal differences between the ocean's surface and deep water into a commercially viable low- temperature power cycle. OTI's cycle can also be modified to produce millions of gallons of fresh water per day as a co- product of DTI's next generation OTEC facilities. OTI plans to develop a small 1 MW on -land power plant at the Natural Energy Laboratory of Hawaii Authority (NELHA) to demonstrate the OTEC power cycle before it undertakes the capital intensive offshore, deep -ocean floating platform. This 1 MW demonstration plant will exhibit the OTEC power cycle and the scalability of the technology in the near term, enabling OTI to proceed to commercial scale projects more quickly. The smaller, land -based demonstration is a prudent interim step in reducing perceived technical and financial risks prior to development of this first full -scale commercial project. OTI's work has not relied on government funding to reach this point and is completely financed by commercial sources— The Abell Foundation and private investors. Private funding keeps the program lean and fully focused on OTI's goal to field and operate commercially viable OTEC plants. The combination of technical innovation, commercial viability and active market development has resulted in term sheets for attractive projects, with power purchase agreements being negotiated. JA‘' r Q T C International LLC An Abell Foundation Company OTEC International, LLC In 2000, The Abell Foundation acquired an exclusive license to the OTEC technology developed by Sea Solar Power's J. Hilbert Anderson and his son James Anderson. In 2001, Abell established OTEC International LLC (OTI) to market and commercialize the OTEC technology. Bringing this cost effective renewable energy solution to developed and emerging markets is important to both OTI and Abell. Since then, Abell has invested tens of millions of dollars and countless hours to develop a cost effective design and to secure power purchase off -take agreements for OTI's commercial projects. A team of world class companies with expertise in naval architecture, marine engineering, power plant engineering and operations, environmental permitting and financial analysis has been assembled to design and develop the first commercially viable OTEC power facility. The OTI team is made up of more than 30 contractual employees and has three company officers. OTI is triple bottom line driven. OTI's innovative technical designs, unique private market perspective, and attractive renewable power prices make it the market leader in OTEC development. In order to be successful, OTI believes: • Renewable power must be sold at prices competitive to fossil fuels • Private investors must be offered a fair return • Government subsidies cannot be depended on in order to be competitive • Power plants must be highly stable, reliable and cost effective • Projects must be socially and environmentally responsible OTI is privately funded by The Abell Foundation and is focused on marketing its technology on a global scale. OTI has executed term sheets with several utilities companies for its commercial projects. 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410- 547 -1300 `440 •41 Q T M C International LLC An Abell Foundation Company About the Team Eileen M. O'Rourke, Chief Operating Officer, OTEC International LLC, and Treasurer, The Abell Foundation, Inc. Ms. O'Rourke has been involved in OTEC for a dozen years, starting with Abell's exclusive license of the Anderson technology in 1999 to her current leadership role of this important strategic investment. Ms. O'Rourke has 30 years of experience in business finance and project management, with ten years managing direct investments in early stage companies and in providing innovative financing solutions in support of social mission activities. As Treasurer of Abell, Ms. O'Rourke is responsible for negotiating and managing direct investments in early stage companies including deal structuring, board level review and oversight, and active participation with management team in advancing commercialization of technologies. She negotiates and monitors loans, guarantees and other financial arrangements in program - related non- profit projects and is also responsible for investment implementation and performance monitoring of portfolios. Barry R. Cole, Executive VP and Director of Technology Development, OTEC International LLC Mr. Cole has more than 35 years of experience in engineering, manufacturing, production and operations, research and development, quality and program management, over 27 of them at a senior and executive level. He has assembled and led teams on large ($5M to $1.5B) and diverse projects in Government and industry. At his current post, Mr. Cole leads a world -class team of contractors from diverse fields of expertise and manages all aspects of cost, schedule and technical performance of a multi - billion dollar OTEC technology commercialization program. Robert J. Nicholson Ill, President and Director of Global Market Development, OTEC International LLC Mr. Nicholson has more than 30 years of experience in the renewable energy sector, ranging from international business development, government relations, sales and marketing, "best in class" partner selection and strategic planning. Bob was responsible for the successful licensing of the Anderson's OTEC technology to The Abell Foundation and has been a tireless advocate and promoter of OTEC for decades. He has marketed the OTEC technology, its features and benefits, to domestic and international governments and a client base that stretches the world over. Mr. Nicholson has secured signed Memorandums of Understanding (MOU) or Term Sheets for OTEC plant development projects in the Pacific and the Caribbean. 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410- 547 -1300 Jonathan M. Ross, P.E., Ch.Eng., Chief Engineer and Lead Naval Architect, OTEC International LLC Ross has more than 20 years of experience in naval engineering, providing technical, operational and management support to commercial enterprises, the U.S. Navy, the U.S. Coast Guard, and international organizations. He has devoted seven years exclusively to the technical and economic aspects of OTEC. His main areas of focus in the OTI program are the platform, cold water pipe, mooring, and power transmission cable. He is active in the fields of computer -aided design and human factors. Reinhard Radermacher, PhD, Professor, Mechanical Engineering Department, University of Maryland, and Director, Center for Environmental Energy Engineering (CEEE) Dr. Radermacher has more than 30 years of experience in research and development of energy conversion systems in general and air - conditioning, refrigeration and heat pumping devices in particular. His research evolved from environmentally safe refrigerants in air - conditioners and heat pumps and optimization of their heat exchangers to combined heating, cooling and power systems for buildings. Over the last decade, he added a focus on the development of user - friendly software for the design of heat pumps and their components. Yunho Hwang, PhD, Research Associate Professor, Mechanical Engineering Department, University of Maryland, and Associate Director, Center for Environmental Energy Engineering (CEEE) Dr. Hwang has more than 28 years of experience in research and development of heat exchangers and refrigerants spanning private industry and academia. He leads the research team in developing and testing the proprietary low cost, high efficiency Heat Exchangers at the CEEE, University of Maryland. Alexander Causey, Vice President, MELE Associates, Honolulu Mr. Causey has more than 30 years of progressive experience in a wide range of fields including: heavy industrial construction, petrochemical, offshore, process, power plant, waste water treatment plant and real estate development. He is a registered professional engineer and licensed general engineering contractor. Development Partners O is, GENZER 20 rVF, 5D S''4 DWGP a * .; Composite Korea Expert Consulting Group • • Engineering Solutions CONCEPTS NREC CDI Marine - Band Lavis Division A Total Turbomachinery Resource Burns and Roe STEPTOE &)OHNSONIIF FISH & RICHARDSON HEALY TIBBITTS BUILDERS, INC. �' A'rVBehs 1.!anne �c '..GMpFrvv Q T C International LLC An Abell Foundation Company About The Abell Foundation, Inc. The Abell Foundation, Inc. is a nonprofit dedicated to enhancing the quality of life in Baltimore and Maryland. It also allocates a portion of its investment portfolio to direct investments in innovative technologies and early -stage companies that have exceptional social, environmental and economic return potential, including energy efficiency and alternate energy. When The Abell Foundation was inaugurated half a century ago, Chairman Harry C. Black and the founding board members set an agenda that allocated grants for schools, hospitals, and human service organizations reaching out to the disadvantaged in the Baltimore community and the region. In the past two decades, the Foundation has sharpened its focus to address complex challenges to break through the cycles of urban poverty. Today, the Foundation places the highest priority on creating solutions that are both innovative and will ensure accountability. This is the commitment of The Abell Foundation: to give hope by opening the doors of opportunity to the disenfranchised, knowing that no community can succeed and thrive if those who live on the margins are not included. Abell has a proven track record of helping innovative technologies achieve commercial success. Prior early stage investments include two companies that advanced to initial public offerings (Guilford Pharmaceuticals and Visicu) and four private dispositions of emerging technology companies. In addition to OTI, Abell's current portfolio includes PAICE Corporation, which developed a hybrid vehicle technology now patented to both Toyota and Ford. PAICE has been ranked one of the two most dominant hybrid vehicle technologies. The Foundation is committed to being an agent of change, with an aim to improve and enrich the quality of life in Baltimore. Grants and multi -year monetary commitments are made in order to advance initiatives in the Foundation's six areas of interest: Education, Health & Human Services, Criminal Justice and Addiction, Workforce Development, Community Development, Arts & Culture, and Conservation & Environment. Publications of in -depth research into selected case studies are also done for public and elected official's awareness. For more information, visit www.abell.org 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410- 547 -1300 .„l Q T C International LLC An Abell Foundation Company History of OTEC "I owe it all to the ocean; it produces electricity, and electricity gives heat, light, motion, and, in a word, life to the Nautilus." Jules Verne, Twenty Thousand Leagues Under the Sea In 1870, Jules Verne introduced the concept of ocean thermal energy conversion (OTEC) in his novel, Twenty Thousand Leagues Under the Sea. Within a decade, French, American and Italian scientists are said to have been working on systems that would take this imaginative concept to reality. But it is the Frenchman, physicist Jacques - Arsene d'Arsonval, who is generally credited as the father of the concept for using ocean temperature differences to create power. D'Arsonval's student, Georges Claude, built the first OTEC power plant in 1930 in Cuba, which produced 22 kilowatts of electricity. This led to the development of an on -shore open cycle plant, with a pipe extending out to sea. Despite initial problems, power was generated. In the 1960s, J. Hilbert Anderson and his son James Anderson designed a closed -cycle OTEC power plant, which they felt would be more practical, compact, and economic. This cycle pumps warm surface water through heat exchangers to boil a working fluid into a vapor. The vapor expands to power turbines and drive generators. Cold water pumped from the deep ocean condenses the vapor back into its liquid state. The Andersons' work preceded the Arab Oil Embargo and the skyrocket of oil prices in the mid 1970s. Japan and India each have done research on smaller scale OTEC power plants and both continue to pursue the technology. In 1979 and 1980, closed -cycle Mini -OTEC and OTEC -1, respectively, were built at the Natural Energy Laboratory of Hawai`i Authority (NELHA) to demonstrate the OTEC concept. The U.S. Department of Energy deemed OTEC was a viable energy source following the Hawaii projects. Hawaii Senator Spark Matsunaga spearheaded a bill that passed Congress and was signed into law by President Jimmy Carter in 1980 that promoted OTEC development. Funding peaked that year, however, as cheaper oil made alternatives less attractive. The Andersons and others continued to move OTEC technology forward and in 2000, the Andersons granted The Abell Foundation an exclusive worldwide license to their OTEC system design. The Abell Foundation established OTEC International LLC in 2001 (formerly Sea Solar Power International) to commercialize OTEC technology. Since then, OTI has innovated the original design to increase efficiency and ease system installation. 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www,OTECI.com • 410 - 547 -1300 “■' �OTEC FREQUENTLY ASKED QUESTIONS How does OTEC work? Ocean Thermal Energy Conversion (OTEC) is a renewable energy technology that uses the temperature difference between warm surface water and deep ocean cold water to power a Rankine cycle to generate electricity. OTI uses a closed -cycle where liquid ammonia is vaporized in a heat exchanger, heated by the warm surface water. The ammonia gas powers turbines that turn generators to produce electricity. The ammonia is cooled back to liquid state using the deep -ocean cold water and the process begins again. Is OTEC proven? The first OTEC power plants were built and tested in the early 1920s by one of the technology's pioneers, Georges Claude. Since then, several test platforms have been built, including in Hawaii, with Mini -OTEC in 1979 and OTEC -1 in 1981, to demonstrate the OTEC concept. In the early 1970s, the inventor of DTI's licensed technology had a major breakthrough in designing a closed -loop cycle, which would make the process more efficient and economically feasible. If OTEC is proven, why is a pilot plant necessary? A pilot OTEC plant would demonstrate the successful generation of energy in an efficient, reliable, and economically feasible way. A 1 MWe (net) pilot plant will demonstrate the scalability of OTI's modular OTEC technologies. OTI sees the importance of educating stakeholders and building community and political support for a new, innovative project. What emissions are associated with OTEC? There are no emissions. Since OTEC has been around for so long, why hasn't the technology been commercialized? According to the U.S. Department of Energy, OTEC was ready for development almost 30 years ago. The CONDENSER 500 F International LLC OTEC An Abell Foundation Company WA ELUHI F EXHAUST VAPOR , , TAROK _��w PRESSURE GENERATOR - qR'1 I�� ' VAPCM :� EVAPORATOR CO ,D 40° F F OCEAN THERMAL ENERGY CONVERSION oil crisis of the 1970s spurred OTEC R &D, but when the price of oil sharply declined, so did OTEC's political and financial support. OTEC energy could not compete with cheap fossil fuels. Now, as oil prices rise due to growing demand, and the manufacturing technologies to produce affordable OTEC system components have been commercialized, OTEC has again surfaced as a promising source of energy. What impact does OTEC have on water quality? The OTI OTEC plant is designed to work with, and benefit from, nature; it is compatible with the ocean's thermal gradients. Warm surface water is pumped through the evaporators, where energy is extracted for conversion to electricity, and discharged at a lower depth. Denser cold water is pumped up through the condensers, where it is warmed, and discharged at a depth beneath the warmer surface water discharge. The ocean is so vast that remixing of the amount of different temperature waters actually could be a benefit. The OTEC cycle discharges nutrient -rich, cold deep -sea water into a warmer layer, potentially increasing the food source for surrounding marine life. 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410 - 547 -1300 How will the ingestion of marine life into the intake pipes be prevented? The OTEC plant has been designed with a series of screens and array of cables to prevent ingestion of small or large marine life. Will there be any irreversible damage to the sea floor from OTEC? No. Unlike offshore oil rigs that drill thousands of feet into the subsea floor, an OTEC plant's links to the ocean floor are only mooring anchors. In places like Hawaii, the sea floor is likely comprised of volcanic rock, so the anchors will be driven into the rock at sufficient depth to ensure adequate strength and survivability. What impact would natural disasters like hurricanes and tsunamis have on the OTEC plant? After thorough analysis, OTI has chosen the highly stable spar design to house its OTEC power plant. U.S. government and industry records have shown that the survivability and performance of spar- designed offshore oil and gas platforms in the Gulf of Mexico held up in the severest storm conditions. In addition, the OTI design has ample reserve buoyancy systems to cover unusual ocean conditions. Offshore OTEC plants would be located away from the shelf in deep ocean water. They will not be affected by tsunami waves which form closer to shore as the pressure wave approaches shallow water in the ocean's shelf regions. Would an earthquake affect the plant's moorings? The OTI mooring platform was designed by world- renowned mooring systems expert, Intermoor. It was also evaluated and granted preliminary "Approval in Principle" by ABS (formerly American Bureau of Shipping). The anchor depth and installation method of the mooring system has been designed to survive earthquakes and geological stresses. How does OTEC compare to other renewable technologies? OTEC is fueled by an infinite supply of solar energy stored in the ocean's top layer. Even after the sun goes down, OTEC can 1/.t. 10 PM Nor 1N11 toot w1.1Stt 0.014 11,10N AT TOY wma+a tap the stored solar energy and generate power 24 hours a day, 365 days a year. Solar and wind renewable energy supplies are not consistent and may vary. Geothermal energy is very site specific and biomass renewable energy consumes precious agricultural resources. For areas of the globe suitable for OTEC, it is a desirable solution. Why OTI? DTI's proprietary OTEC design is the culmination of more than 40 years of research and development focused on system efficiency and reliability as evidenced by a portfolio of eleven patents filed in just the past two years! To our knowledge, OTI's commercial power plant design is the only one to have been evaluated by an independent engineering firm and deemed ready to move forward to commercial development. OTI is the first and only company to have received the preliminary "Approval in Principle" by ABS for its floating OTEC power plant. Could a developed set of islands such as Hawaii be 100 percent energy independent with OTEC plants? Hawaii has excellent operating conditions for OTEC and a variety of attractive site locations. OTI believes that in the long term, Hawaii could use up to 16 OTEC power plants that could supply all or a substantial portion of the state's base load energy needs. How much of the world's electric power generation can be produced by OTEC? According to United Nations (UN) and US CIA statistics, about 40 percent of the world's population is now within the equatorial band defined by 20 °N latitude and 20 °S latitude. This population is projected by the UN to increase to 60 percent of the world's total by 2050. The ocean is the largest solar collector on the planet. Even if all the coastal communities in the earth's tropical and semi - tropical zone were to harness OTEC energy, the amount of energy being extracted from the ocean would be a small fraction of what the sun is constantly delivering. noon. 4,“13 NU N101Wf0 TO TM 1t* floe. snstaumo. • Courn.a rows untluaal <olo 1.116 .1 fs HAM Of COm om w11.1613 AND 6 .t4TM Lr a 1,3U /mu%ATTACH C 64 KotT AID SUM Nf 1..N. lGAl AS 1R Lent MWNG all Ct31MW116MT , N• C3 T C International LLC An Abell Foundation Company OTEC International LLC and Hawaii OTEC International LLC (OTI) is excited at the prospect of developing projects in Hawaii, with the islands' rich history of OTEC research and development. OTI is negotiating a lease with the Natural Energy Laboratory of Hawaii Authority (NELHA) to locate a 1- megawatt full -cycle demonstration plant at the 870 -acre Hawaii Ocean Science and Technology (HOST) Park administered by NELHA. HOST Park in Kailua -Kona on Hawaii Island was established for demonstration and commercialization of renewable energy, ocean science and sustainable living technologies. This onshore demonstration is aimed to test in concert the components of the OTI design. A pilot OTEC plant would demonstrate the successful generation of energy in an efficient, reliable, and economically feasible way. A 1 MW pilot plant will demonstrate the scalability of OTI's modular OTEC technologies. OTI sees part of the purpose as educating stakeholders and building community and political support for a new, innovative project. OTI is also negotiating with Hawaiian Electric Company (HECO) on a power purchase agreement for a 100 - MW plant off the coast of O`ahu. Hawaii has excellent operating conditions for OTEC and a variety of attractive site locations offering near - shore, deep ocean conditions. OTI believes that in the long term, OTEC power plants could supply a substantial portion of the state's base load energy needs. These excellent conditions, coupled with Hawai`i's political will to break its reliance on imported fossil fuels, are attractive for OTEC development. 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410- 547 -1300 N„ v T C International LLC An Abell Foundation Company FOR IMMEDIATE RELEASE OTEC International LLC in Line for Hawai`i OTEC Demonstration (KEAHOLE, HI, November 17, 2011) - OTEC International LLC (OTI) was selected for lease negotiation to build a one - megawatt onshore demonstration plant by the Natural Energy Laboratory of Hawaii Authority (NELHA) to test the full power cycle of ocean thermal energy conversion (OTEC) to produce electricity. Baltimore -based OTI has built its OTEC design on decades of research and innovation, combining proprietary technology with off - the -shelf components. Privately funded OTI has not relied on any government money to reach its goal and expects to be first -to- market with an offshore commercial plant. OTI has a term sheet and is negotiating a power purchase agreement with Hawaiian Electric Company for a 100 - megawatt (MW) plant off the coast of Oahu, is negotiating a 25 MW plant with the Caribbean Utilities Company, and is in talks with other utilities. The demonstration plant is slated for the 870 -acre Hawaii Ocean Science and Technology (HOST) Park administered by NELHA. HOST Park in Kailua -Kona on Hawaii Island was established for demonstration and commercialization of renewable energy, ocean science and sustainable living technologies. (www.nelha.orq) OTI was selected from four submittals to NELHA in response to its call for proposals. NELHA's staff and Research Advisory Committee each ranked OTI's proposal substantially higher, according to reports to the board. NELHA and OTI will begin negotiating terms and outlining technical specifications right away. NELHA's board and the Hawaii Governor's office must approve the lease. Greg Barbour, NELHA's executive director, told the NELHA board Tuesday that OTI's proposal was "superior; comprehensive in all four areas" required in the proposal. "We are, of course, very pleased that the NELHA board recognized the careful planning of our excellent team that has gone into our project," said Eileen O'Rourke, OTI's chief operating officer. Barry Cole, OTI's Executive VP and director of technology development leads that team. "Our main funder, The Abell Foundation, has invested substantially in advancing OTEC research over the last 11 years, proving its commitment to this exciting power source." The Abell Foundation also holds exclusive license to the OTEC designs developed by Sea Solar Power, a 40 -year pioneer in OTEC research. OTEC uses vast solar energy stored in the upper ocean layer to vaporize ammonia, producing electricity via a turbine and generator. Deep water cools the ammonia back to liquid to be heated again in a 24/7, 365- days -a -year cycle. ABS (formerly known as the American Bureau of Shipping), which sets standards of excellence in marine and offshore classification, has awarded OTI Approval -in- Principle for a floating renewable energy plant in both 25 MW and 100 MW models. It is ABS's first for such an energy plant. 111 S. Calvert St. • Suite 2300 • Baltimore, MD 21202 www.OTECI.com • 410 - 547 -1300 OTI has been funded by The Abell Foundation, a philanthropic group based in Baltimore, which also invests in promising technologies with social objectives, such as alternate energy. (www.abell.org) OTI is set to build a pilot plant at NELHA that will produce net electricity, rather than simply test components. OTI has run successful tests of its components at other facilities and subjected its designs, test protocols, results and analysis to peer review. The next step is to negotiate a lease agreement and terms with NELHA, which has infrastructure in place to provide a head start for full -cycle demonstration, O'Rouke said. OTI intends to finance the project with private capital and relying on no government subsidies. "OTEC's history is firmly rooted at NELHA. We see this as bringing it home in a sense," she added. "There will be a lot of `show- and -tell' associated with this demonstration and NELHA is an appropriate location for that." OTEC was part of the original mission of the NELHA facility. OTEC has global promise as a renewable energy source, but it has yet to produce commercial power. Its technical feasibility was affirmed more than 30 years ago by the U.S. Department of Energy, but low fossil fuel prices have prevented its commercial application. "OTI's demonstration plant at NELHA will advance NELHA's stature as the world's premier research and development site for OTEC," O'Rourke said. Over the anticipated 30 -year life of the demonstration plant, OTI intends to hone OTEC technology, components and operations as new or better materials and systems are discovered. # ## ABSSetting Standards of Excellence in Marine & Offshore Classification About ABS • Services • Reso..rces • ABS Academy • Careers • News & Events • Sectors • ABS Home -4 News & Events -■ Newsroom -4 Press Releases News & Events Newsroom Press Releases E -ergy News Saeec ^es a P ^oto Gallery ABS Sem nars Events P bl catio ^s Contacts Press Releases ABS Di ABS Provides First Approval in Principle for Floating Renewable Energy Plant Advanced Thermal Energy Conversion 17 August 2011 (Houston, TX - - -) Class society ABS has issued Its first Approval in Principle (AIP) for a new concept renewable energy design in which a moored spar uses ammonia in a closed -cycle process to produce electrical power for a commercial utility grid. Unlike wind, tidal or solar power the advanced design for this Ocean Thermal Energy Conversion (OTEC) system can deliver constant output 24 hours a day. "This concept combines proven offshore principles with off- the -shelf power, technology and proprietary innovations, all assembled in a unique way,- says Ian Simpson, ABS Director of Offshore Technology and Business Development, Americas Division. "The design application illustrates how ABS is able to use its novel concept approach and guidance to provide review of a concept within the framework of established safety standards.' Developed by OTEC International (OTI) LLC of Baltimore, Maryland, the approach converts liquid ammonia into gas in a heat exchanger using warm ocean surface water. The ammonia gas then drives turbines that turn generators to produce electricity which is then exported through a submarine power cable to a land -based utility company. The ammonia is condensed back into a liquid phase using cold ocean water pumped from 3,000 feet below the water's surface and the process begins again. The process is based upon the well- established thermodynamic Rankine cycle. "OTI has integrated the OTEC power block into a large floating vessel, in this case a soar. for an economically and environmentally - efficient means of converting solar energy from the tropical oceans into affordable electricity,' explains Barry Cole. OTI's Executive Vice President and Director of Technology Development. Key elements evaluated by ABS include: spar hull sizing for the deep draft spar design: energy conversion equipment located in the spar; handling and storage of hazardous materials: deepwater mooring system; cold water pipe conduit suspended from the base of the spar; construction and attachment of the cold water pipe conduit, and power transmission cable with its securing, anchonng and suspension arrangements. ABS reviewed the design for an extended 30 -year facility on- station life. ABS has issued Approval in Pnnciple for both the 25MW and 100MW designs. OTI could be eligible for ABS' class notation Al, Floating Offshore Installation (FOI) Spar. SFA(30). Founded in 1862 ABS is a leading international classification society devoted to promoting the security of life, property and the marine environment through the development and verification of standards for the design, construction and operational maintenance of marine - related facilities. -30- (www.eagle.org)