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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
* 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
“…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)
[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
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
Heat Source
Introduction: What is Required?
Deep Cold Water (Heat Sink)
Accessibility of Resources &
Demand for Energy
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]
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
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.”
* 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.)
* 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
* 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
* 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
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
* 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
* 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
Review of Major Events: From 1974 to 1981 (cont.)
Argonne National Lab 1-‐MWt HX Test Facility
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
* 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.)
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)
* 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.)
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…”
Review of Major Events: From 1974 to 1981 (cont.)
Environmental Impact Statement (prepared by NOAA in 1981)
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
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)
PREPA’S 40 MW Plant Proposal to DOE in 1981
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
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
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
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
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
HaitiCentral America
World
IV2010-2030
ADDITIONAL OTEC PLANTSAT 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 multipleplant ocean thermal resource
LARGE SIZE PLANTS
MODULE
MODULE
III1996-2010
MULTIPLE OTEC POWER PLANTSLAND & NEAR SHORE
(400 MW)
(Caribbean & World)
DOD & Isolated Industrial Sites
II1990-1996
FIRST LARGE SIZECOMMERCIAL PLANTS
(100 & 300 MW)
MODULE
MODULE
MODULE
(10, 20, 40 & 50 MW)
PHASE
JamaicaDominican Republic
I1986-1990
FIRST MINIMUM SIZECOMMERCIAL PLANTS
TEST OPERATE
SMALL SIZE PLANTS
Developing Island Nations
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.
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)
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)
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)
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
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)
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]
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)
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)
Review of Major Events: From 1982 to 2006 (cont.)
Luis Vega’s “OTEC” is published (1999) Luis Vega’s “OTEC Primer” is published (2003)
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)
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)
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
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)
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)
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)
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)
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”
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.”
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
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)
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)
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)
Recent Developments and Current Projects: 2007 to Present (cont.)
Meanwhile, outside PR…
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
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
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
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
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…
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
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]
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…
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…
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…
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…
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…
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…
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: [email protected]