Ocean Thermal Energy Conversion, known as “OTEC”, is a scientifically proven system of generating clean, baseload (24/7), renewable energy, without the use of fossil fuels. OTEC is ideally suited for tropical and subtropical regions of the world, where three billion people live.

80% of the sun’s solar energy is stored in the surface waters of the world’s oceans and replenished daily.

OTEC taps into this vast renewable energy source by using the temperature differential between the warm surface water and cold deep ocean water to make clean electricity. Equally important, OTEC can use a portion of its electricity to operate adjoining water desalination plants, thus producing abundant volumes of fresh drinking water as well. This water can be used for drinking, fish farming, aquaculture, and agriculture.

In a closed cycle OTEC system, ocean water flows through two large pipes: a warm water pipe containing the surface water, which is heated by the sun every day; and a cold-water pipe containing the chilly water from the deep ocean. The heat from the surface water is used to boil an operating fluid with a low boiling point creating steam, which in turn drives a turbine generator to produce electricity. The cold deep water is then used to condense the steam back into liquid form, allowing the system to repeat this process continuously, forever fueled by the sun’s reliable daily heating of the surface water.

Seawater/Lake Water Air Conditioning systems use cold, deep ocean water as the non-polluting refrigerant for large-scale air conditioning needs, including resorts, hotels, and data centers.

In non-scientific terms, an SWAC/LWAC 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 SWAC/LWAC 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 clean refrigerant for air conditioning, reducing electricity usage by 80%-90% when compared to conventional AC and saving the typical customer millions of dollars in electricity bills over the contract’s life.

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 24/7, providing a constant supply of energy. Wind and solar work 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 subtropical oceans every day. With the global population growing exponentially and industrializing, more 24/7 energy is essential to meet those needs. Second, and equally important, OTEC is much bigger than just 24/7 renewable energy. It can also be used to produce great volumes of fresh drinking water and sustainable food production and economic development.

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.

There are two reasons. First, oil prices are marked by tremendous fluctuations. In fact, the recent tumbling of oil prices once again proves the wild volatility and unpredictability of oil costs. This volatility is thoughtfully addressed in the May 8, 2020 Politico article entitled Clean energy is now a hot investment. According to the article, the early 2020 oil price crash and the coronavirus pandemic ‘….makes renewable energy a surprisingly hot investment prospect amid the current low oil prices. Renewables are one way to meet stricter climate targets, and for the first time they aren't an expensive luxury. “In the past, oil price declines hurt renewables, but today renewables are the cost-effective choice in two-thirds of the world.” That means that instead of renewables being cast aside as oil prices drop, in 2020 they’re emerging as the only viable long-term energy investment.’

These reason might explain that so many of OTE’s customers for OTEC and SWAC/LWAC continue to eagerly seek information on our system as a means to energy cost stability.

Second, technological advances in deep water piping from the offshore oil industry have made large-scale, robust pipes commercially available for OTEC plants. With these two developments, OTEC is becoming profitable while SWAC/LWAC is already commercialized and successfully operating in several locations around the world. Both of these well-proven technologies can also help produce plentiful amounts of fresh drinking water, dramatically reduce carbon emissions, and potentially save customers millions of dollars in energy costs in appropriate markets.

OTE has generated interest from many global customers for OTEC and SWAC/LWAC plants who are located in tropical and sub-tropical regions of the world, such as the Caribbean, Africa, Asia and other areas. Increasing interest in renewable energy and a clean, healthy environment globally have provided us with a robust number of interested potential customers.

OTE’S business model is to design, build, own and operate OTEC and SWAC/LWAC systems in our markets. OTE works with world-class engineering, procurement, and construction companies (EPCs) who are interested in building these systems for us.

OTE has spent many years researching and developing plans for OTEC and SWAC systems. More recently, OTE was hired by a major defense contractor to develop plans for the construction of a SWAC plant for the U.S. military. OTE supported the first stage of this energy-saving project.

OTE is in the planning stages for an OTEC EcoVillage, which we hope will be the first of many. This will be the very first development of its kind in the world offering a net-zero carbon footprint. The OTEC EcoVillage project consists, in part, of an OTEC plant which will provide all power and water to about 400 residences, a hotel, and shopping center, as well as models of sustainable agriculture, food production, and other economic developments. The U.S. Virgin Islands’ Public Service Commission has granted OTE regulatory approval for an OTEC plant, and OTE has identified the specific plots of land for the site. The first draft of the Master Plan for the entire development has been completed. This will be OTE’s pilot project, launched to prove the viability of OTEC technology to provide affordable renewable energy for entire communities. The Company believes this $700 million project could be highly profitable and generate significant value for its shareholders.

A demonstration plant has been built and is in continuous operation at the Natural Energy Laboratory of Hawaii (NELHA). OTE’s engineers were a part of the team that built this US DoE sponsored project. This plant is the only OTEC system in the world connected to the US grid.