This document provides an outline for a presentation on Ocean Thermal Energy Conversion (OTEC). OTEC utilizes the temperature difference between warm surface waters and cold deep ocean waters to drive a heat engine and generate electricity. The presentation discusses the history of OTEC development, types of OTEC systems, evaluation criteria for assessing OTEC as a commercial option, and the social and environmental impacts of OTEC. Key points made include that OTEC is a viable baseload energy technology, has minimal environmental impacts, and offers Puerto Rico an opportunity for sustainable economic development through a clean energy source.

1. OCEAN
THERMAL
ENERGY
CONVERSION
(OTEC):
A
Sustainable
Economic
Development
Option
for
Puerto
Rico
EXPO
Convención
Anual
CIAPR
2015
Río
Mar
Beach
Resort,
Río
Grande,
PR
Manuel
A.J.
Laboy-­‐Rivera,
PE,
MBA,
CSP

2. * Introduction
* Chronological
Review
of
Major
Events
ü Prior
to
the
70’s
ü From
1974
to
1981
ü PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
ü From
1982
to
2006
* Recent
developments
and
current
projects:
2007
to
present
* Understanding
OTEC
history
–
what
really
happened
* Puerto
Rico
and
OTEC:
today
* Puerto
Rico
and
OTEC:
the
future
* A
vision
for
Puerto
Rico:
options
for
sustainable
economic
development
* Suggested
roadmap
for
implementation
* Q&A
session
Presentation
Outline

3. “…there
are
few
things
that
are
unprecedented
and
few
opportunities
for
changing
the
game”
–
George
Friedman
The
Next
100
Years:
A
Forecast
for
the
21st
Century
(2010)

4. [As
defined
by
US
Public
Law
96-­‐310
on
July
17,
1980]
“Method
of
converting
part
of
the
heat
from
the
Sun
which
is
stored
in
the
surface
layers
of
a
body
of
water
into
electrical
energy
or
energy
product
equivalent.”
[Closed-­‐Cycle
Shown]
Introduction:
What
is
OTEC?
Picture
from
TU
Delft

5. Solar
energy
absorbed
by
oceans
is
≈
4000
x
humanity
annual
consumption.
Less
than
1%
of
this
energy
will
satisfy
all
global
needs
(@
thermal/electric
conversion
of
~
3%).
OTEC
recovers
part
of
the
heat
energy
stored
in
the
Earth's
oceans
to
generate
electricity.
Introduction:
The
Resource
Picture
from
OTEC.org

6. Heat
Source
Introduction:
What
is
Required?
Deep
Cold
Water
(Heat
Sink)
Accessibility
of
Resources
&
Demand
for
Energy

7. Introduction:
Types
of
Systems
Closed-­‐Cycle
[Technically
&
economically
feasible
today
at
commercial
scale
–
10
to
75
MW]
Open-­‐Cycle
[Requires
more
R&D
–
less
than
1
MW;
Co-­‐produces
water]
Hybrid-­‐Cycle
[Suitable
for
Pilot
or
Demonstration
Plant
–
1
to
5
MW;
Co-­‐
produces
water]

8. Evaluation
of
OTEC
as
a
commercial
option
should
focus
on
the
following
points:
* Technical
viability
(engineering/design,
off-­‐the-­‐shelf
equipment,
deployment/construction)
* Environmental
impact
* Economics
(competitive
cost
of
electricity
versus
fossil
fuels
such
as
oil)
* Appropriate
financing
strategy
and
structure
(utility
project)
* Baseload
versus
intermittent
electric
power
production
Introduction:
OTEC
Evaluation
Criteria

9. Introduction:
OTEC
Evaluation
Criteria
(cont.)
The
Importance
of
Baseload
Power
Generation
(ENR
2011)
“…
even
wind,
geothermal
and
solar
energy
supporters
say
they
cannot
replace
the
massive
baseload
power
provided
by
nuclear,
natural
gas
and
coal.”
“…
solar
farms
could
not
produce
electricity
24
hours
a
day,
as
coal,
gas
or
nuclear
can.”

10. * OTEC
is
a
baseload
viable
technology
(closed-­‐cycle
50-­‐75
MW;
hybrid-­‐cycle
1-­‐5
MW)
* OTEC
uses
no
fuel
* Efficiency
or
capital
cost
are
important
but
do
not
represent
the
economic
bottom-­‐line
* OTEC
cost
of
electricity
is
competitive
(closed
cycle;
final
$/kW-­‐h
depends
on
size
due
to
economies
of
scale,
location/market,
financing
specifics,
contract
terms
&
conditions,
etc.)
* Equipment
for
closed-­‐cycle
system
is
commercially
available
(off-­‐the-­‐shelf)
* Safe
operation
with
minimal
environmental
impacts
* Reliable
operation
with
minimum
maintenance
* Platform
and/or
cold
water
pipe
construction/deployment
similar
to
the
marine
and
other
related
industries
* Low
pressures
and
temperatures
of
OTEC
process
represent
lower
equipment
cost
compared
to
high
P/T
of
other
similar
energy
sources
Introduction:
OTEC
Evaluation
Criteria
(cont.)

11. * No
fuel
needed
ü One
100-­‐MW
plant
can
save
1,300,000
bbl
per
year
or
$130
MM
per
year
(@
$100/bbl)
* No
emissions
of
conventional
air
pollutants
ü One
100-­‐MW
plant
can
save
500,000
tons
of
CO2
per
year
or
$15
MM
per
year
(@
$30/
ton
Carbon
Credit)
* No
solid
wastes
* Discharge
essentially
similar
to
ambient
water
* Can
concurrently
produce
potable
water
(hybrid
or
open-­‐cycle)
* Stable
supply
(not
vulnerable
to
external
factors)
* Very
high
availability
factor
(>85%)
* Cost
is
known
and
fixed
from
day
1
(very
low
volatility)
* Public
is
very
receptive
to
idea,
once
the
basic
principle
is
understood
* Baseload
electricity
(available
24/7/365)
Introduction:
OTEC
Social
&
Environmental
Impact

12. * Thermal
fluid
system
leak
ü Ammonia
proven
safety/environmental
record;
OSHA
PSM;
EPA
RMP
* Effect
of
chemicals
used
to
reduce/control
biofouling
ü Proposed
intermittent
doses
below
EPA’s
allowable
concentrations
* Upwelling
effect
ü Occurs
naturally
in
various
sites
worldwide;
most
famous
site
is
in
Peru’s
off-­‐coast
in
the
Pacific;
to
be
avoided
in
first
plant;
combined
discharge
just
below
the
photic
zone
to
match
conditions
of
receiving
body
* Marine
organisms
entrainment
and
impingement
ü Use
similar
technology
used
in
existing
coastal
power
plants
* Movement
of
large
amounts
of
water
ü Long-­‐term
effects
need
further
study
Introduction:
OTEC
Risks

13. * All
potential
issues
can
be
avoided,
controlled
and/or
mitigated
during
system
design,
industry
standards,
engineering
best
practices
and/or
through
preventive
measures
during
operation
* Environmental
impact
assessments
and
strict
permitting
process
required
by
both
PR
and
EEUU
(NOAA,
EPA,
EQB,
etc.)
* First
plant
to
include
program
to
study
long-­‐term
environmental
effects
during
operation
–
UPR
recommended
as
partner
Introduction:
OTEC
Risks
(cont.)
“Every
energy
source
pollutes…
some
do
so
badly
and
some
not
so
badly,
but
all
do.”
–
Editor-­‐in-­‐Chief,
Journal
of
the
Association
of
Energy
Engineers,
2011

14. Introduction:
Use
of
Technology
to
Mitigate
Risks
Modeling
for
one
100-­‐MWe
plant
discharges
Oceanography
Modeling
for
three
100-­‐MWe
plants,
2.2
km
spacing,
100
m
combined
discharge

15. * Jacques
D’Arsonval
formally
proposed
the
idea
in
France
in
the
1880’s
* Dr.
Georges
Claude
built
and
operated
the
first
plant
in
Matanzas,
Cuba
in
1930
(22
kW);
“Power
from
the
Tropical
Seas”
is
published
in
1930
by
Mechanical
Engineering
* In
1950’s
ü French
engineers
attempted
to
build
an
OTEC
plant
in
Abidjan
(Ivory
Coast)
but
project
was
too
costly
ü Sea
Water
Conversion
Laboratory
at
University
of
California
was
founded
and
obtained
government
funds
for
research
* James
H.
Anderson
Jr.
presented
his
thesis
“A
Proposal
for
a
New
Application
of
Thermal
Energy
from
the
Sea”
to
MIT
in
1964
* Oil
embargo
occurred
in
1974
–
a
game
changer…
Review
of
Major
Events:
Prior
to
the
70’s

16. * Federal
government
provided
funds
for
OTEC
research
* Significant
amount
of
work
done
by
ü Lockheed
ü Johns
Hopkins
University
Applied
Physics
Laboratory
ü Argonne
National
Laboratory
ü General
Electric
ü UPR
Mayaguez
Center
for
Energy
and
Environment
Research
(CEER)
–
Oceanography,
heat
exchanger
design
and
operation
(biofouling,
corrosion,
microfouling),
environmental
studies
Review
of
Major
Events:
From
1974
to
1981

17. Review
of
Major
Events:
From
1974
to
1981
(cont.)
Argonne
National
Lab
1-­‐MWt
HX
Test
Facility

18. Review
of
Major
Events:
From
1974
to
1981
(cont.)
Demonstration
Project
@
Hawaii:
Closed-­‐Cycle
with
NH3
Alfa
Laval
Titanium
Plate
Heat
Exchangers
Gross
Power:
53
kW
Net
Power:
18
kW
Approx.
4
months
of
operation

19. * 1980:
General
Electric
prepared
conceptual
design
for
Department
of
Energy
(DOE)
for
Hawaii
ü Gross
Power:
55
MWe,
Net
Power:
40
MWe
ü Shelf-­‐Mounted
ü Closed-­‐Cycle
with
NH3
ü Trane
Al-­‐Bz
Plate-­‐Fin
HX’s
(submerged
* 1980:
JHU/APL
prepared
preliminary
design
for
DOE
for
both
Hawaii
and
Puerto
Rico
ü Gross
Power:
52
MWe,
Net
Power:
40
MWe
ü Floating/Moored
Platform
(Puerto
Rico),
Grazing
NH3
Plantship
(Hawaii)
ü Closed-­‐Cycle
with
NH3
ü Two
HX
Modules:
Folded-­‐Tube
and
PHE;
Interchangeable
Modules
ü HX
Installation:
On-­‐Platform
Review
of
Major
Events:
From
1974
to
1981
(cont.)

20. Review
of
Major
Events:
From
1974
to
1981
(cont.)
1980:
A
conference
is
conducted
in
Maunabo
to
explain
OTEC
and
its
environmental
impact
(Sponsored
by
UPR
Sea
Grant
Program
and
UPR
Mayaguez
CEER)

21. * 1980:
US
Congress
approved
Public
Law
96-­‐310
ü Solar
energy
technologies
to
supply
1%
US
energy
needs
by
1990
and
20%
by
2000
ü Demonstration
of
a
minimum
of
100
MWe
from
OTEC
by
1986
ü Demonstration
of
a
minimum
of
500
MWe
by
1989
ü Achieve
an
average
COE
by
installed
OTEC
systems
that
is
competitive
with
conventional
energy
sources
for
US
Gulf
Coast
region,
US
islands,
US
territories
and
possessions
by
mid
1990’s
ü National
goal
of
10,000
MW
of
OTEC
electrical
energy
capacity
by
1999
* 1980:
US
Congress
approved
Public
Law
96-­‐320
ü To
establish
guidelines
for
OTEC
financial
and
regulatory
assistance
by
Federal
agencies
ü National
Oceanic
and
Atmospheric
Administration
(NOAA)
as
“one-­‐stop-­‐
shop”
for
licensing
process
Review
of
Major
Events:
From
1974
to
1981
(cont.)

22. Review
of
Major
Events:
From
1974
to
1981
(cont.)
The
OTEC
Act
of
1980:
Sec
2.(a)
“The
Congress
finds
that:
ü The
supply
of
nonrenewable
fuels
in
the
US
is
slowly
being
depleted
ü Alternative
sources
of
energy
must
be
developed
ü OTEC
is
a
renewable
energy
resource
that
can
make
a
significant
contribution
to
the
energy
needs
of
the
US
ü The
technology
base
for
OTEC
has
improved
over
the
past
two
years
and
has
consequently
lowered
the
technical
risk
involved
in
constructing
moderate
size
pilot
plants
with
an
electrical
generating
capacity
of
about
10
to
40
MW
ü …
it
is
in
the
national
interest
to
accelerate
efforts
to
commercialize
OTEC
by
building
pilot
and
demonstration
facilities
and
and
to
begin
planning
for
the
commercialization
of
OTEC
technology
ü A
strong
and
innovative
domestic
industry
committed
to
the
commercialization
of
OTEC
must
be
established…”

23. Review
of
Major
Events:
From
1974
to
1981
(cont.)
Environmental
Impact
Statement
(prepared
by
NOAA
in
1981)

24. Review
of
Major
Events:
From
1974
to
1981
(cont.)
Demonstration
Project
@
Hawaii:
OTEC-­‐1
(1981)
1-­‐MWe
At-­‐Sea
Test
Facility
Closed-­‐Cycle
with
NH3
No
Turbine
(Throttle
Valve)
Shell
&
Tube
Titanium
Heat
Exchangers
Approx.
3
months
of
operation

25. Review
of
Major
Events:
From
1974
to
1981
(cont.)
Meanwhile,
Tokyo
Electric
Co.,
Toshiba
and
the
Republic
of
Nauru
completed
a
demonstration
plant
@
Nauru
in
1981:
Closed-­‐Cycle
with
Freon
(R-­‐22)
Shell
&
Tube
Titanium
Heat
Exchangers
Gross
Power:
120
kW
Net
Power:
31.5
kW
Aprox.
3
months
of
operation
Plant
connected
to
the
island’s
electric
grid
(supplied
power
to
a
school)

26. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981

27. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
(cont.)
Key
Statements:
ü PREPA
as
prime
contractor
ü Turn-­‐key
project
ü Safety,
O&M
and
environmental
factors
considered
ü Novel
approach
to
deployment
of
tower
and
CWP
ü Project
depended
on
Federal
support

28. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
(cont.)
Key
Statements:
ü No
fuel
needed
(free
ocean
energy)
ü Correlation
between
OTEC
and
economic
growth,
new
industries
and
job
creation

29. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
(cont.)
Proposal
considered
and
emphasized
on
two
major
aspects:
ü World-­‐wide
unique
characteristics
of
Punta
Tuna
in
terms
of
thermal
and
cold
deep
water
resources,
its
proximity
to
shore,
as
well
as
oceanography
and
bathymetry
related
profile
and
advantages
ü One
of
the
best
documented
OTEC
sites
in
the
world

30. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
(cont.)
ü 40-­‐MW
electric
power
generation
ü Jacket-­‐type
fixed
tower
in
300
feet
of
water
1
to
2
miles
to
shore
ü Modularized
power
system
(10
MW
each
module)
ü Closed
cycle
ammonia
power
system
ü Near
bottom
mounted
shell
&
tube
titanium
heat
exchangers
for
(1)
minimum
loading
on
tower,
(2)
wave
and
hurricane
protection
and
(3)
process
performance
ü 3,000
feet
CWP
–
considered
at
the
time
as
the
biggest
challenge

31. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
(cont.)
A
vision
for
Puerto
Rico
Hard
to
believe,
many
would
argue,
that
PREPA
did
have
an
economic
development
vision
for
Puerto
Rico
almost
35
years
ago
based
on
short,
medium
and
long
term
commercialization
goals
of
OTEC
–
PREPA’S
proposal
was
not
just
to
generate
power,
IT
WAS
AN
INTEGRATED
AND
VISIONARY
ECONOMIC
DEVELOPMENT
PLAN
FOR
PUERTO
RICO
electric power source
Offshore out of sight (25 miles)
Grazing OTEC plant ships based in PR
Power supplied to DR, Haiti & USVI
OTEC principal PR
moored plants
Haiti
Central America
World
IV
2010-2030
ADDITIONAL OTEC PLANTS
AT SEA & GRAZING
Expanded maximum OTEC resource use
CARIBBEAN &
INTERNATIONAL
PUERTO RICO
Punta Tuna & Vieques OTEC Farms
(2/4/6 400 MW)
Supply Vieques, Culebra,
PR & St. Thomas
Data on large field multiple
plant ocean thermal resource
LARGE SIZE
PLANTS
MODULE
MODULE
III
1996-2010
MULTIPLE OTEC POWER PLANTS
LAND & NEAR SHORE
(400 MW)
(Caribbean & World)
DOD & Isolated Industrial Sites
II
1990-1996
FIRST LARGE SIZE
COMMERCIAL PLANTS
(100 & 300 MW)
MODULE
MODULE
MODULE
(10, 20, 40 & 50 MW)
PHASE
Jamaica
Dominican Republic
I
1986-1990
FIRST MINIMUM SIZE
COMMERCIAL PLANTS
TEST OPERATE
SMALL SIZE
PLANTS
Developing Island Nations

32. PREPA’S
40
MW
Plant
Proposal
to
DOE
in
1981
(cont.)
PR
as
a
global
OTEC
leader:
A
long-­‐term
plan
integrating
energy
with
economic
growth
–
manufacturing
chemicals,
exporting
energy,
product
and
related
services.

33. Review
of
Major
Events:
From
1982
to
2006
Robert
Cohen’s
“Energy
from
the
Ocean”
is
published
(1982)
J.
Hilbert
Anderson’s
“OTEC:
The
Coming
Energy
Revolution”
is
published
(1982)

34. Review
of
Major
Events:
From
1982
to
2006
(cont.)
Eugene
Kinelski’s
“OTEC
Heat
Exchangers:
A
Review
of
R&D”
is
published
(1985)
ANL
published
“Conceptual
Design
of
a
10
MW
Shore-­‐Based
OTEC
Plant”
(1982)

35. Review
of
Major
Events:
From
1982
to
2006
(cont.)
NOAA
published
“The
Potential
Impact
of
OTEC
on
Fisheries”
(1986)
SSEB
published
“OTEC:
An
option
for
PR”
based
on
a
100-­‐
MW
by
SSP
to
the
Government
of
PR
(1987)

36. Review
of
Major
Events:
From
1982
to
2006
(cont.)
SSEB
Report
Key
Statements:
ü PR’s
vulnerable
and
fragile
economy
due
to
dependency
on
US
manufacturing
corporations,
federal
transfers
and
imported
oil
to
generate
electric
power
ü PR’s
potential
to
become
world
leader
in
OTEC
technology
and
its
related
spin-­‐off
industries

37. Review
of
Major
Events:
From
1982
to
2006
(cont.)
Fluor
Daniel
published
“Feasibility
Study
of
an
100
MW
OTEC
Plant”
for
SSP
(1989)
ASCE
published
“Conceptual
Design
of
an
Open
Cycle
OTEC
Plant
for
Production
of
Electricity
and
Water”
(1989)

38. Review
of
Major
Events:
From
1982
to
2006
(cont.)
Demonstration
Project
@
Hawaii:
210
kW
Open
Cycle
Experimental
Plant
NELHA-­‐PICHTR
(1993-­‐1999)
Actual
power:
255
kW
(gross),
103
kW
(net)
Water
production:
0.4
l/s
(9,130
gal/day)
[Facility
is
still
operational
(CWP
only)
for
DOW
applications
and
R&D]

39. Review
of
Major
Events:
From
1982
to
2006
(cont.)
Luis
Vega’s
“Economics
of
OTEC”
is
published
(1992)
William
Avery
&
Chih
Wu’s
“Renewable
Energy
from
the
Ocean:
A
Guide
to
OTEC”
is
published
(1994)

40. Review
of
Major
Events:
From
1982
to
2006
(cont.)
William
Avery
&
Walter
Berl’s
“Solar
Energy
from
the
Tropical
Oceans”
is
published
(1998)
Richard
Crews’
“OTEC
Sites”
is
published
(1997)

41. Review
of
Major
Events:
From
1982
to
2006
(cont.)
Luis
Vega’s
“OTEC”
is
published
(1999)
Luis
Vega’s
“OTEC
Primer”
is
published
(2003)

42. Review
of
Major
Events:
From
1982
to
2006
(cont.)
ASME
published
“The
First
Commercial
OTEC
Power
Plant”
(2004)
Don
Lennard’s
“OTEC:
Its
Position
in
the
Renewable
Energy
Scene”
is
published
(2005)

43. Recent
Developments
and
Current
Projects:
2007
to
Present
In
Puerto
Rico…
“An
Energy
Solution
for
PR”
video
is
launched
by
OIA
–
with
over
349,000
views
in
YouTube
since
2007
Proposal
to
PREPA
for
75
MW
OTEC
plant
is
submitted
by
OIA
(2007)

44. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
Multiple
conferences
across
the
Island
to
raise
awareness
and
educate
about
OTEC
and
its
benefits
to
Puerto
Rico

45. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
Press
Article
about
OTEC
(El
Nuevo
Día
on
June
24,
2008)
Press
Article
about
OTEC
(El
Vocero
on
April
17,
2010)

46. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
PREPA’s
strategic
plan
including
OIA’s
proposal
to
develop
OTEC
(Caribbean
Business
on
March
12,
2009)

47. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
Press
Article
about
OTEC
(Primera
Hora
on
February
18,
2010)
Press
Article
about
OTEC
(El
Nuevo
Día
on
September
21,
2011)

48. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
“OTEC:
Heat
Exchanger
Evaluation
and
Selection”
is
published
(Manuel
Laboy
et
al.
2010)
“Commercial
Implementation
of
OTEC”
is
published
(Manuel
Laboy
et
al.
2010)

49. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
Proposal
to
PRASA
for
OTEC
plant
(electric
power
and
water)
is
submitted
by
OIA
(2009)
OTEC
is
included
in
the
PPD
2012
political
proposal
“Plan
Energético
Nacional”

50. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
In
Puerto
Rico…
2012:
“Senate
Resolution
289
directs
the
island
government’s
Energy
Affairs
Administration
to
seek
federal
funds
and
private
financing
for
a
power
plant
in
the
Punta
Tuna
area
of
Maunabo.
The
Senate
bill
aims
“to
position
Puerto
Rico
as
a
world-­‐
class
center
of
research,
development
and
production.”
The
Senate
report
on
the
measure
projects
$90
million
in
annual
revenue
from
the
sale
of
OTEC
power
at
15
cents
per
kilowatt
hour,
which
is
well
below
the
current
cost
of
oil-­‐fired
power
production
in
Puerto
Rico.
It
notes
that
an
OTEC
project
could
be
undertaken
through
a
public-­‐
private
partnership
(PPP).
A
2008
report
by
researchers
at
the
University
of
Puerto
Rico
in
Mayagüez
characterized
Puerto
Rico
as
the
best
location
in
the
world
for
OTEC.”

51. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
ANL
Workshop
Washington
DC
2007
Energy
Ocean
International
2009
NOAA-­‐UNH
Workshops
2009
&
2010
Energy
Ocean
International
2010

52. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
OTEC
Technical
Readiness
Report
from
NOAA
(2009)
OTEC
Assessing
Potential
Physical,
Chemical
and
Biological
Impacts
and
Risks
Report
from
NOAA
(2010)

53. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
Hawaii
published
“Federal
and
State
Approvals
for
Marine
and
OTEC”
(2011)
Lockheed
Martin
published
“A
Developer’s
Roadmap
to
OTEC
Commercialization”
(2011)

54. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
Makai
Engineering
published
“The
Hydrogen
Economy
of
2050
–
OTEC
Driven?”
NELHA
published
“Draft
EIA
for
OTEC
Plant
in
Hawaii”
(2012)

55. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…

56. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
1st
OTEC
International
Symposium
–
Hawaii
(2013)
2nd
OTEC
International
Symposium
–
Korea
(2014)
3rd
OTEC
International
Symposium
–
Malaysia
(2015)
R&D
and
Commercialization
Facilities:
OTEC
and
Desalination
Room
Heat
Exchanger
Room
Hydrogen
Experimental
Room
Deep
Seawater
Simulation
Room
R&D
and
Commercialization
Activities:
Heat
Exchangers
Power
Cycle
Process
Simulation

57. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
R&D
and
Commercialization
Activities:
OTEC
power
cycle
design
analysis
OTEC
power
cycle
component
analysis
Offshore
OTEC
research
OTEC
implementation
studies
TU
Delft
spin-­‐off
company:
Bluerise
Technology
provider
and
project
developer
of
Ocean
Thermal
Energy
solutions
located
in
the
Netherlands

58. Recent
Developments
and
Current
Projects:
2007
to
Present
(cont.)
Meanwhile,
outside
PR…
Hawaiian
Electric
Company
is
in
negotiations
for
a
power
purchase
agreement
with
an
ocean
thermal
energy
conversion
company.
A
preliminary
agreement
has
been
reached
for
a
unit
off
the
southwest
coast
of
Oahu
near
the
utility’s
Kahe
Power
Plant.
R&D
Activities:
Aluminum
Corrosion
and
Biocorrosion
Testing
Interactive
OTEC
Power
Atlas
Hawaii
Ocean
Science
and
Technology
Park
(HOST
Park)
R&D
Activities:
Heat
Exchanger
Test
Facility
Deep
Ocean
Water
Applications

59. Understanding
OTEC
History
What
Really
Happened?
The
world…
* Cost
of
oil
dropped
back
to
$30/bbl
in
1987
and
$15/bbl
in
1998
* Reagan
administration
favored
nuclear
power
* OTEC
was
perceive
as
“high
risk
and
yet-­‐to-­‐be-­‐demonstrated
technology”
ü This
alleged
perception
contradicts
the
conclusions
that
formed
the
basis
for
PL
96-­‐310
and
PL
96-­‐320
* Perceptions
of
the
need
for
alternative
energy
sources
diminished
ü Supported
by
low
cost
of
oil
(<
$30/bbl)
* Essentially
all
efforts
depended
on
government
funding
ü Federal
government
(and
other
nations)
stopped
most
funding
for
OTEC
research
in
mid
1980’s
1990’s
* Global
warming
not
a
major
concern
until
much
later

60. Understanding
OTEC
History
What
Really
Happened?
(cont.)
Puerto
Rico…
* Cost
of
oil
dropped
back
to
$30/bbl
in
1987
and
$15/bbl
in
1998
* PREPA’s
avoided
cost
(used
to
be
a
serious
barrier)
* Local
government
waiting
for
Uncle
Sam
(or
someone
else
from
the
outside)
to
be
the
first
and/or
make
things
happen…
* Lack
of
support
from
some
local
renewable
energy
advocates
and
proponents
ü Erroneous
perception
that
OTEC
competes
with
Solar,
Wind,
Biomass/
Biofuels
or
other
renewable
energy
sources
* Local
government
lack
(poor
or
deficient?)
of
leadership
and
vision…
ü Perhaps
afraid
(or
not
used
to
the
idea)
to
lead
the
world…

61. Understanding
OTEC
History
What
Really
Happened?
(cont.)
Puerto
Rico
and
the
world…
History
of
Oil
Prices
(1975-­‐2008)
(in
2008
$$)
1981:
~$100/bbl
(PREPA’s
proposal
for
40
MW
plant)
1987:
~$30/bbl
(Private
proposal
for
100
MW
plant)
1994:
~$25/bbl
(Avery’s
proposal
for
government-­‐funded
40
MW
plant)
1998:
~$15/bbl
(Avery’s
proposal
for
government-­‐funded
40
MW
plant;
private
proposal
for
200
MW
in
PR)
2008:
~$148/bbl
(OIA’s
proposal
for
75
MW
plant
in
PR)
August
7th,
2015:
~$45/bbl

62. Understanding
OTEC
History
What
Really
Happened?
(cont.)
Puerto
Rico
and
the
US…
Puerto
Rico
1985:
98%
oil-­‐fired,
2%
renewable
(hydro)
2006:
~73.1%
oil-­‐fired,
~12.8%
natural
gas,
~13.6%
carbon,
~0.5%
renewable
(hydro)
2013:
In
2013,
55%
oil-­‐fired,
28%
natural
gas,
16%
coal,
1%
from
renewable
(solar,
wind
&
hydro)
[Approx.
11-­‐12%
today]

63. Puerto
Rico
and
OTEC:
Today
* No
OTEC
commercial
plant
* No
OTEC
demonstration
or
pilot
plant
* No
OTEC
R&D
facilities,
initiatives
and
programs
* No
OTEC
cluster(s)
or
centers
of
excellence
* No
specific
legislation
for
OTEC
commercialization
roadmap
* No
OTEC
specific
(or
general)
curriculum
at
university
level
(BS,
MS
or
PhD)
* No
government
support
or
government-­‐led
programs
and
initiatives
for
OTEC
* No
private
sector
support
or
private
sector-­‐led
programs
and
initiatives
for
OTEC
* Still,
and
sadly,
no
local
government
leadership
and
vision
for
OTEC…
ü Still,
waiting
for
Uncle
Sam
(or
someone
else
from
the
outside)
to
be
the
first
and/
or
make
things
happen…
ü Still,
erroneous
perception
that
OTEC
competes
with
Solar,
Wind,
Biomass/
Biofuels
or
other
renewable
energy
sources
ü Perhaps,
we
are
still
afraid
(or
not
used
to
the
idea)
to
lead
the
world…
After
35
years
since
PREPA’s
proposal
to
the
DOE…

64. Puerto
Rico
and
OTEC:
The
Future
A
vision
for
Puerto
Rico:
Options
for
Sustainable
Economic
Development
Puerto
Rico
has
the
best
location,
natural
resources
and
market
conditions
to
built
and
operate
the
1st
OTEC
commercial
plant
in
the
world
TODAY
–
to
become
the
world-­‐wide
leader
in
OTEC
The
window
of
opportunity
still
exists…

65. Puerto
Rico
and
OTEC:
The
Future
A
vision
for
Puerto
Rico:
Options
for
Sustainable
Economic
Development
* OTEC
renewable
and
baseload
electric
power
generation
ü Local
consumption
–
clean,
renewable
and
competitive
cost
ü Export
to
the
Caribbean
region
* OTEC
co-­‐generation
of
desalinated
water
at
competitive
cost
ü Local
consumption
–
for
potable
water
and
irrigation
ü Export
to
the
Caribbean
region
and
the
world
* Deep
ocean
water
applications
ü Sea
water
air
conditioning
for
coastal
facilities
(i.e.
hotels
and
resorts)
ü Mariculture/aquaculture
(lobsters,
shrimp,
salmon,
others)
ü Micro-­‐algae
(for
production
of
bio-­‐fuels
and
specialty
chemicals)
This
is
what
we
can
achieve…

66. Puerto
Rico
and
OTEC:
The
Future
A
vision
for
Puerto
Rico:
Options
for
Sustainable
Economic
Development
* World-­‐class
R&D,
clusters
and
centers
of
excellence
ü OTEC
engineering
and
design
ü Heat
exchangers
and
power
cycles
ü Oceanography
and
marine
science
ü Deep
ocean
water
applications
* World
leader
in
OTEC
products
and
services
ü Export
OTEC
manufacturing
equipment
ü Export
services
(engineering
scientific
know-­‐how,
R&D)
* World
leader
in
the
production
of
green
chemicals
ü Use
OTEC
2nd
and
3rd
generation
plants
to
produce
energy-­‐intensive
green
chemicals
such
as
Hydrogen,
NH3,
Methanol,
Nitrogen,
Oxygen
and
CO2
ü Attract
other
industries
for
manufacturing
products
that
required
these
green
chemicals
as
raw
materials
ü Export
these
green
chemicals
to
the
Caribbean,
US
and
the
world
This
is
what
we
can
achieve…

67. Puerto
Rico
and
OTEC:
The
Future
A
vision
for
Puerto
Rico:
Options
for
Sustainable
Economic
Development
True
economic
development,
growth
and
industry/academy
integration:
ü Creation
of
OTEC/DOW
centers
of
excellence
and
clusters
around
the
local
universities
and
OTEC
natural
resources
ü Integration,
maximization
and
optimal
utilization
for
CORCO
old
facilities/
land
and
Port
of
the
Americas
This
is
what
we
can
achieve…

68. Puerto
Rico
and
OTEC:
The
Future
Suggested
Roadmap
for
Implementation
* First
commercial
plant
(>50
MW)
in
Punta
Tuna
(closed-­‐cycle,
electric
power
only)
–
PPA
with
PREPA
or
PPP
(4-­‐5
years
development
–
engineering/design,
permitting/licensing,
procurement,
construction/deployment,
start-­‐up
and
operation)
* Parallel,
a
demonstration
or
pilot
plant
(1-­‐5
MW)
in
Punta
Tuna
(hybrid
cycle,
electric
power
and
water)
–
PPA
with
PRASA
or
PPP
(3-­‐4
years
development)
–
integrate
UPR
* Pass
two
state
laws,
one
for
OTEC
commercialization
and
development,
and
one
for
regulatory
framework
(similar
to
PL
96-­‐310
and
PL
96-­‐320)
ü Treat
OTEC
as
a
top
economic
development
priority
ü Formulate
(and
implement)
bold
strategy
and
integrate
both
public
sector
(DDEC,
PRIDCO,
OEPPE,
etc.)
and
private
sector
(CIAPR,
etc.)
* Develop
the
first
Puerto
Rico
OTEC/DOW
R&D
and
Center
of
Excellence
ü PSTRT
to
lead
and
finance
efforts
in
collaboration
with
UPR
and
private
sector
Actions
that
can
be
taken
today…

69. The
End
Remember…
“…there
are
few
things
that
are
unprecedented
and
few
opportunities
for
changing
the
game”
–
George
Friedman
The
Next
100
Years:
A
Forecast
for
the
21st
Century
(2010)
WE
HAVE
A
UNIQUE
OPPORTUNITY
TO
CHANGE
THE
GAME
TO
ACHIEVE
LONG-­‐
TERM
GROWTH
AND
ECONOMIC
DEVELOPMENT
FOR
PUERTO
RICO…
Q&A
Session
Email:
laboy.manuel@rocketmail.com