OTEC is coming to Hawaii

Makai Ocean Engineering, Inc.

www.makai.com
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 Ocean Thermal Energy Conversion

Using the temperature difference between:

DEEP OCEAN WATER ~5°C
and
SHALLOW OCEAN WATER ~25°C 25 C

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 Ocean Thermal Energy Conversion

Closed -cycle
y

1. Warm ocean surface seawater boils a refrigerant liquid at high pressure (130 psi).
2. Refrigerant vapor spins a turbine-generator, becomes low pressure (80 psi).
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3. C ld d
Cold deep ocean seawatert condenses
d refrigerant
fi t tto a liquid
li id again.
i
4. Cycle continues -- similar to steam turbine but lower temperature.
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 OTEC History

Small OTEC trials have been technically successful.

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 OTEC Opportunity
OTEC Development & Crude Oil Prices

$70

1979 Mini--OTEC

1981 funding cut

6 Alum Tests sttart

$s)

9 Alum Tests end

$60
Price of Imporrted Oil (2003 $

1992 Nelha OTEC

2005 Price
$50
1973 OTEC interest

1984 Kahe design

$40

1999
1996
$30
TEC Progress

Mini-OTEC 1979
emendous

$20
75-1980

$10
197
Tre
OT

$-
1970 1980 1990 2000 2010
Source: US Energy Information
Actual (IRAC) Agency, 2003.
Pi
Prices referenced
f d tto 2003.
2003
Current EIA 2006 Forecast

• Oil prices back up

• Energy security issues
• Global Warming Lockheed Spar 1979
 „ In a world with uncertain oil, is OTEC a
SBIR Goals credible hydrogen source?

Platform Fuel Alternate

• 2005     Phase 1:  Broad 
Properties Preparation Fuel Brush
Warm water
pipe
Hydrogen
y g
Production
Water
Production
Transport • Parametric model of one 
Parametric model of one
Propulsion / Electricity Return water
plant   
Mooring Production pipe
Seawater & • Economic model of OTEC 
Geographic
Properties
industry:
Cold
Water • Same benchmarks as DOE
Same benchmarks as DOE 
Pipe
Hydrogen Program.

„ 2007 Phase II: Greater detail for cost

credibility
„ Detailed Rankine Cycle Model w/ Heat Exchangers &
piping losses
„ Cold Water Pipe - Design & Installation
„ 1st level
l l costt optimization
ti i ti
„ Seakeeping motions
„ Independent fuel product selection
„ Industry partners for techniques and costs
„ 100 MW net power

Makai Ocean Engineering, Inc.

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Business Confidential
 Cost of Hydrogen

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 Summary and Conclusions

OTEC
• Makai’s SBIR Study
’
– “First Plant” Conceptual Design
– Developed a Technical and Economic Model
– Vision of OTEC Industry
– Partnering – Path to Phase III
Partnering  Path to Phase III
Electricity Today
• OTEC is technically feasible

• OTEC is economically viable for electricity today

OTEC is economically viable for electricity today
Ammonia Soon
• In H2 economy, OTEC should be considered 
alongside other renewables
– Large sustainable resource
– Continuously available With
– Cost competitive Hydrogen
H2 Economy

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 OTEC Commercialization Strategy
Opportunity Qualification, • Pursue funding opportunities
Staff/Team & Technology
• Industry/Market Contacts Key Tenets
Development
• Opportunity Development 9 Focus on DoD opportunities with
• Technology to Reduce Cost
2007 – 2010 10 MW Pilot Plant
9 Seek DoD / DoE funding for Pilot
Plant production
Large Scale Testing, 9 Re-Package Pilot Plant design for
M j S
Major System
t T
Trades,
d 100+MW Production Plant
Prelim. Design and Cost National Energy
Laboratory Hawaii Authority
2008 – 2010

Hawaii is:
• ~90% reliant on
10 MW DoD/Hawaii Pilot Plant petroleum for energy
(Risk Reduction, Market Entry Size)
• Mandating 20% energy
from renewables by
2008 – 2014 2020
• DoE “showcase” for
renewable energy (Clean
Energy Initiative)
• Home to numerous DoD
1st 100+ MW Production Plant bases interested in
distributed renewable
energy
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Site Data
• 6 km to shore
• 1.2 km deepp

Makai Ocean Engineering, Inc.

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Business Confidential
 OTEC Challenges:
• Technical
– CWP
– Heat Exchangers
– Cable to Shore
Cable to Shore
– Environmental
• Financial
– Reasonable cost
– Economy of scale
– How get started:  chicken and egg

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Lockheed Martin Proprietary Information 12
 Thank you
y

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Makai Ocean Engineering The Future Role of OTEC Energy Ocean 2008 13