OCEAN THERMAL ENERGY CONVERSION AND

THE PACIFIC ISLANDS

March 2001 SOPAC Miscellaneous Report 417

Energy Unit, South Pacific Applied Geoscience Commission

Private Mail Bag, GPO, Suva, Fiji Islands
 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

OCEAN THERMAL ENERGY CONVERSION AND

THE PACIFIC ISLANDS

Prepared by:
Rupeni Mario
Energy Project Officer
South Pacific Applied Geoscience Commission

Cover: An imaginary illustration of an OTEC Plant – OTEC Laboratory, Faculty of Science and
Engineering, Saga University, Japan.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

TABLE OF CONTENTS
Page(s)
Acknowledgement 3
Map of the Pacific Region 4
Executive Summary 5
Introduction and Background 6
Objectives 7
How OTEC Works
What is OTEC? 8
The Basic Process 8
Closed-cycle OTEC System 8
Open-cycle OTEC System 9
Hybrid OTEC System 9
Plant Design and Location 9
Advantages of OTEC 10
Disadvantages of OTEC 10
OTEC Economics 10
Achievements, The Need for Further Development and the 11
Current Status of the OTEC Technology
Prospects and Concerns/Appropriateness of the OTEC
Technology
12
Prospects
Concerns/Appropriateness 12
Recommendations 13
References 15
Annex 1 16

ACKNOWLEDGEMENT
Comments and suggestions provided by Mr Paul Fairbairn, Energy Manager, SOPAC, Mr
Jean-Michel Durand and Mr Solomone Fifita of SPC (PREFACE), and other members of the
CROP1 Energy Working Group are gratefully acknowledged.

1
Council of Regional Organisations of the Pacific

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

THE PACIFIC REGION

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

EXECUTIVE SUMMARY
The idea of using thermal energy from the ocean is not new. A French scientist, J.
D’Arsonval first thought about the idea more than a century ago but it was only in early 1970
when research on this technology started to take shape.

The Pacific island countries are heavily dependent on fossil fuels to meet their increasing
energy needs for economic development. The high costs associated with fossil fuels are
placing an increasing strain on the economies in the region.

A significant factor in energy usage patterns in Pacific island countries has been attributed to
the availability of energy sources as early as the fifteenth century where pollution control was
not an issue. People have used what they have been able to get, be it coal, oil, natural gas,
wood, etc. However, within the last two decades warnings of global destruction and climate
change have become major issues. The growth of environmental awareness and the rising
demand for energy has urged researchers to identify other sources of renewable energy.

The heat stored in the ocean can be converted into electricity by means of a process called
Ocean Thermal Energy Conversion (OTEC), which uses the ocean’s natural temperature
gradient to drive a turbine connected to a generator which produces electricity. Apart from
electricity, there are other useful by-products from the OTEC process like fresh water, chilled
water and nutrient-rich water. To date there are basically three types of OTEC systems
developed to harness the ocean heat – a closed-cycle, an open-cycle and a hybrid-cycle.

The economics of energy production have delayed the financing of permanent OTEC plants.
At present, the cost per kWh from OTEC is more than that of the electricity generated from
fossil fuels and decreases with increasing capacity of the power plant.

The environmental impact of the introduction of OTEC plants to the Pacific region is a
significant concern to our small island countries. The laying of pipes and discharging of cold
water at huge volumes in the coastal waters may cause damage to the marine ecosystem.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

INTRODUCTION AND BACKGROUND

This paper is the result of discussions held during the Regional Energy Meeting (REM) 2000
and the SOPAC STAR Energy Working Group 2000 meeting which noted the need to
provide technical information on “New Energy Technologies”, in particular, hydrogen fuel,
ocean thermal energy conversion (OTEC) and space solar power generation.

As Pacific island countries vary widely in terms of natural resource endowment and energy
use patterns, they still remain heavily dependent on fossil fuels to meet their increasing
energy needs. The relatively high costs associated with fossil fuels have encouraged
research into indigenous resources as an alternative source of energy. However, the
potential of indigenous resources is yet to be fully realised and exploited.

The excessive use of fossil fuels by industrialised countries2 has not only increased the
carbon dioxide and other ozone-depleting gases in the atmosphere, but has also contributed
to global warming, sea-level rise and climate change, all of which the Pacific island countries
are vulnerable to. The Pacific islands view this as a major disaster and have openly criticised
the industrialised nations for not taking serious measures to reduce the pollution of the
atmosphere and their greenhouse gas emissions.

Not withstanding the above, there are a number of changes afoot unfortunately not driven by
past neglect but by opportunities to realise economic gain. This has lead to the sudden
overwhelming interest in the region for funding renewable energy projects as the result of
industrialised countries’ commitment towards the Kyoto Protocol3, this resulting in the
introduction and increase of new and renewable energy technologies into the Pacific region.

The Pacific Regional Energy Assessment (PREA) conducted in 1992 highlighted the failures
in using unconventional approaches (wind power, wave power, ocean thermal energy
conversion (OTEC), biogas digesters, biogas gasifiers and solar power). Further
unsuccessful introduction of renewable energy technologies, except for solar photovoltaics,
were highlighted in the European Community’s Lomé II Pacific Regional Energy Programme
Final Report, August 1994. Both reports stressed the lack of technical, economic or financial
viability of the options in the Pacific context and their unsustainable institutional support
requirements. This led to the Pacific island countries remaining very much dependent on
imported petroleum products to cater for their day to day energy requirements.

2
China, Japan, Russia, United States
3
It is noteworthy that the Kyoto Protocol has not been ratified by the industrialised countries - as at
June 2001.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

A significant factor influencing energy usage patterns has been attributed to availability and
affordability. People have traditionally used what they have been able to get, be it coal, oil or
natural gas. As early as the fifteenth century pollution control was not an issue but within the
last two decades there have been numerous warnings of global destruction due to increase
in greenhouse gases resulting in changing climate conditions. The growth of environmental
awareness to address these issues and the rising demand for energy has urged researchers
to develop and adopt new sources of renewable energy.

The idea of using thermal energy from the oceans was first thought of by a French scientist,
J. D’Arsonval, more than a century ago. It was only since early 1970 when research on this
technology started to take shape.

The Oceans cover more than 70% of the earth’s surface. This makes them the largest solar
energy collector and energy storage system on this planet. The 60 million square kilometres
(23 million square miles) of tropical seas absorb an amount of solar radiation equal in heat
content to about 29 billion kilolitres (250 billion barrels) of oil.

The heat stored in the vast expanses of water can be converted into electricity by means of a
process called Ocean Thermal Energy Conversion (OTEC). However, the temperature
differential required for this process is not achievable in all parts of the ocean. Research work
has identified potential sites which are considered suitable for developing OTEC plants, see
Annex 1.

The OTEC system operates on a thermodynamic cycle, which uses the temperature
differential between warm surface water (at 260C or 790F) and substantially colder water (at
40C or 390F) from the ocean depths. Apart from being able to use the differential to generate
electricity, other useful by-products from the OTEC plant are fresh water, chilled water and
nutrient-rich water.

OBJECTIVES
The primary objectives of this paper are as follows:
1. Provide information on the history, operation, application and current development on
the ocean thermal energy conversion technology; and
2. Provide information to assist decision makers in making appropriate decisions on the
introduction of the technology into the Pacific region.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

HOW OTEC WORKS?

What is OTEC?
OTEC or Ocean Thermal Energy Conversion is an energy technology, which uses the
ocean’s natural temperature gradient to drive a turbine, which is connected to a generator. It
is desirable that the temperature difference between the warm surface water and the cold
deep water be at least 200C (680F).

The Basic Process

OTEC systems rely on the basic relationship between pressure (P), temperature (T) and
volume (V) of a fluid, which can be expressed by the following equation:

PV where pressure, temperature and the volume of a fluid can be

= a constant
T closely controlled by manipulating the other two variables.

Hence the differential in temperature of the fluid can be used to create an increase in
pressure in another. The increase in pressure is utilised to generate mechanical work.

There are basically three types of OTEC systems developed that can utilise sea water
temperature differentials – they are: a closed-cycle, an open-cycle and a hybrid-cycle.

Closed-cycle OTEC System

The closed-cycle system uses a
working fluid, such as ammonia,
pumped around a closed loop, which
has three components: a pump, turbine
and heat exchanger (evaporator and
condenser). Warm seawater passing
through the evaporator converting the
ammonia1 liquid ④ into high-pressure
ammonia vapour at ⑤. Diagram: courtesy of Luis Vega, Hawaii.

Schematic of a closed-cycle OTEC system

The high-pressure vapour at ① is then
fed into an expander where it passes through and rotates a turbine connected to a generator.
Low-pressure ammonia vapour leaving the turbine ② is passed through a condenser, where
the cold seawater cools the ammonia, returning the ammonia back into a liquid ③.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

Open-Cycle OTEC System

The open-cycle system is generally
similar to the closed-cycle system and
uses the same basic components. The
open-cycle system uses the warm
seawater as the working fluid. The warm
Diagram: courtesy of Luis Vega, Hawaii.
seawater passing through the evaporator
② is converted to steam ③, which drives
Schematic of an open-cycle OTEC system
the turbine/generator. After leaving the
turbine ⑤, the steam is cooled by the cold seawater to form desalinated water. The
desalinated water is pure fresh water for domestic and commercial use.

Hybrid OTEC System

The hybrid system uses parts of both open-cycle and closed-cycle systems to produce
electricity and desalinated water. In this arrangement, electricity is generated in the closed-
cycle system and the warm and cold seawater discharges are passed through the flash
evaporator and condenser of the open-cycle system4 to produce fresh water.

PLANT DESIGN AND LOCATION

The location of a commercial OTEC plant has to be in an environment that is stable enough
for an efficient system operation. The temperature differential at the site has to be at least
200C (680F). Generally the natural ocean thermal gradient necessary for OTEC operation is
found between latitudes 20 degrees north and 20 degrees south.

Land-based OTEC plants do not require a sophisticated mooring system, lengthy power
cables and more extensive maintenance as required with open ocean environment. In
addition, the land-based sites allow OTEC to be associated with industries such as
agriculture and those needing cooling and desalinated water.

The offshore or floating OTEC plant is another option. There are a number of difficulties
associated with such a facility as it is difficult to stabilise the platform. The need for lengthy
cables to deliver power and extra transportation to access the plant are added expenses.
The plant is also more susceptible to damage especially during storms.

4
That is, the original open-cycle system with the turbine/generator removed.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

ADVANTAGES OF OTEC
OTEC uses clean, abundant, renewable and natural resources to produce electricity.
Research indicates that there are little or no adverse environmental effects from discharging
the used OTEC water back to the ocean at prescribed depths. As well as producing
electricity, OTEC systems can produce fresh water and cold water for agricultural and
cooling purposes. The use of OTEC also assists in reducing the dependence on fossil fuels
to produce electricity.

DISADVANTAGES OF OTEC
One of the disadvantages of land-based OTEC plants is the need for a 3 km long cold water
pipe to transport the large volumes of deep seawater required from a depth of about 1000
m. The cost associated with the cold water pipe represents 75% of the costs of current plant
designs. Studies show that OTEC plants smaller than 50 MW cannot compete economically
with other present energy alternatives. A 50 MW plant will require 150 m3/s of cold water
thus, the 3 km long cold water pipeline has to be at least 8 m in diameter.

Another disadvantage of a land-based plant would be the discharging of the cold and warm
seawater. This may need to be carried out several hundred metres offshore so as to reach
an appropriate depth before discharging the water to avoid any up dwelling impact on coastal
fringes (i.e., fish, reef, etc). The arrangement also requires additional expense in the
construction and maintenance.

To minimise construction costs of the cold water and discharge pipes, a floating OTEC plant
could be an option. However, the costs associated with the maintenance and mooring facility
of such a structure is of significance.

Further to the structural needs of the OTEC plant there is also energy required for pumping
the sea water from depths of about 1000 m. Meeting the energy requirements for the OTEC
plant’s operation is a factor to be noted as the need to install diesel generators may arise.

OTEC ECONOMICS
OTEC power will be cost effective if the unit cost of power is comparable with other power
plants such as wave, hydro and diesel. However, it is important that all capital costs and
ongoing maintenance/service costs are included so that the individual technologies are

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

compared on a level playing field. Work carried out by Dr Luis Vega and his team in Hawaii
has shown that for plants of the 1 MW range, the unit cost is considered comparable, see
table below.

Comparison of Unit Cost of OTEC with Conventional Energy Sources in the Pacific Region (1990).

Adopting Dr Vega’s calculation procedure to OTEC plants in India, the following shows the
unit cost of electricity for the range of 1 MW to 100 MW.

ACHIEVEMENTS, THE NEED FOR FURTHER DEVELOPMENT

AND THE CURRENT STATUS THE OTEC TECHNOLOGY
Since Jacques D’Arsonval’s idea of tapping the thermal energy of the ocean in 1881, OTEC
system development ranges from a 22 kW, gross power, plant in 1930 to a record 255 kW,
gross power (103 kW, net power) plant which also produces 23 litres (6 gallons) of
desalinated water per minute.

Some of the areas currently being considered in the research and development of OTEC are:
● The improvement of the heat transfer coefficient for heat exchanges over a period of
time; and
● The development of new materials for the cold water pipe. Apart from being able to
withstand the marine conditions, the materials should provide for easy fabrication and
deployment.

The State of Madras, India is preparing to build and test a 1 MW floating plant offshore. The
Sea Solar Power Inc. of USA proposed some 100 MW floating plants around the world

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

including a 10 MW pilot plant in Guam. Currently the bid for funding these proposals has
been unsuccessful. Research in OTEC is still being pursued by the Japanese who funded a
major symposium on OTEC and Deep Ocean Water Applications (DOWA). The Taiwanese
government has a long interest in OTEC with Taipei being the home to the international
OTEC/DOWA (IOA)5.

On 20 April 2001, Saga University of Japan and Palau signed an agreement to promote
research and technological exchange for power generation by OTEC. The university plans to
build an OTEC plant in Palau in the near future.

PROSPECTS AND CONCERNS/APPROPRIATENESS OF

THE OCEAN THERMAL ENERGY CONVERSION TECHNOLOGY
Prospects
A number of proposals to develop OTEC/DOWA in many Pacific island countries have been
written and submitted to potential donors/investors for their consideration. The OTEC
technology is perhaps the solution to meeting some of the region’s increasing energy
requirements thus, reducing the need to import petroleum products.

The OTEC technology seems to have worked well at research and development projects
however, the involvement of the private sector developers are quite reserved, as there is an
enormous initial investment required. This has been a major obstacle for the development of
commercially-based plants.

Concerns/Appropriateness
Ocean thermal energy conversion may seem promising and ideal for some Pacific island
countries however, the region has to take precautions. The question(s) the region should
now consider are:

● Is it time to adopt the technology as an integral part of electricity generation?

● Given the vulnerability of our small island states, what are the environmental impacts of
having an OTEC plant in the region?
● The establishment and running of an OTEC plant requires an enormous amount of power
and water. Where will the power come from? Do we have to install more diesel
generators to supply power for the plant?

5
International OTEC/DOWA Association

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

● Can the region maintain and service such an installation?

And the list goes on.

RECOMMENDATION
Like the introduction of any other new energy technology, the question of suitability,
appropriateness and sustainability arises. “OTEC for the Pacific” is what many people will
perhaps agreed to, given its benefits of not only producing electricity but also desalinated
water, nutrient-rich water for agriculture and cold water for cooling purposes but the benefits
have to be weighed against the potential hazards to the marine environment which many
Pacific islanders rely upon as a source of food, income and recreation.

With a few countries in the Pacific region (Annex 1) identified as having the potential for
OTEC plants, perhaps researchers should consider carefully the recommendations provided
from feasibility studies that look at options to build a pilot/demonstration plant at these sites.
However, the issues raised above relating to the concerns and appropriateness should also
be fully answered. Lessons learnt from the Nauru plant (which operated for 10 months from
October 1981) and current research results provide a basis on which to form a consensus on
whether to build another plant in the region or not.

The consideration to adopt OTEC into the Pacific region may be premature as the
technology has not yet been commercially proven, however, given the right development
parameters and a feasibility study including environmental impact assessment that are
consistent and acceptable will ensure the development of a sustainable project in the not-
too-distant future. Another consideration would be whether OTEC works out cheaper than
the currently available renewable energy technologies such as solar photovoltaics, hydro,
biomass and wind.

The Pacific region can always sit back and wait for the right opportunity. However, while
doing so, the region should be aware of the developments in the technology. The region
should also consider improving its institutional structures for managing renewable energy
technologies as the deciding factor in their introduction is usually whether the technology is
economically viable, environmentally sound and sustainable in the region.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

The Pacific small island states on their own will definitely not be able to adopt and sustain the
new technologies. The region needs assistance and guidance from its neighbouring
developed nations.

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

REFERENCES
Hörmandinger G and Lucas N; Excerpts from “Is Clean enough? – The influence of
environmental externalities on markets for fuel cells in transport”; Centre for Environmental
Technology, Imperial College, London, 1996.

IOA Newsletter; International OTEC/DOWA Association; 1999 – 2001 Editions.

Thomas H. D; Ocean Thermal Energy Conversion: An Extensive, Environmentally Benign

Source of Energy for the Future, Natural Energy Laboratory of Hawaii Authority, in
“Sustainable Development International; Strategies and Technologies for Agenda 21
Implementation”; Third Edition, ICG Publishing Ltd, London, 2000.

Websites:
● www.nrel.gov/otec/
● mano.icsd.hawaii.gov/dbedt/ert/otec/
● www.nelha.org/otec.html

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 Ocean Thermal Energy Conversion (OTEC) and the Pacific Islands

Annex 1 Less-Developed Countries in the Indian and Pacific Oceans with Adequate
Ocean-Thermal Resources – 25 kilometres or less from Shore

0
Country / Area Temperature Difference ( C) of Distance from resource to
Water between 0 and 1000 m Shore (km)
Comoros 20-25 1-10
Cook Islands 21-22 1-10
Fiji 22-23 1-10
Guam 24 1
Kiribati 23-24 1-10
Maldives 22 1-10
Mauritius 20-21 1-10
New Caledonia 20-21 1-10
Pacific Islands Trust Territory 22-24 1
Philippines 22-24 1
Samoa 22-23 1-10
Seychelles 21-22 1
Solomon Islands 23-24 1-10
Vanuatu 22-23 1-10

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