December 19, 2011
We are pleased to announce that today we signed an Energy Services Agreement (ESA) with the Baha Mar resort, Nassau, Bahamas (www.bahamar.com).
This major contract for Ocean Thermal Energy Corporation (OTE) represents approximately twelve months of discussions with Baha Mar:
- We are building the world’s first largest seawater district cooling (SDC) system supplying chilled water for air-conditioning needs
- Chilled water will be supplied by OTE for Baha Mar’s needs and will save up to 90% of energy costs without the use of harmful polluting refrigerants
- OTE will build, own and operate the 12,000 ton system with an expected commercial operation date of December 2013
- Over the 30 year life of the contract, we estimate the system will reduce Baha Mar’s energy consumption by ~58,000 bbl oil (equivalent to ~ 26,000 ton CO2) per year
- DCO Energy (www.dcoenergy.com) to be our lead Engineer, Procurement Contractor (EPC)
- Raymond James Financial to be our lead debt placement agent and book-runner
- Total project costs are approximately $100 million
- Revenue accruing pursuant to the off-take of the chilled water by Baha Mar is anticipated to be approximately $500,000,000
We would like to thank our investors, shareholders and advisors for their support and enthusiasm for our company and its mission.