Page 42 - IB November 2023
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Renewable Energy                                                                                                                                                                          Renewable Energy



                         OTEC: CHALLENGING THE

                                            STATUS QUO



         By Kite Pareti                                      good location, and we’ll conduct a more detailed study in the
                                                             next phase,” he said.
          The proponents of Ocean Thermal Energy Conversion    So, how does the technology work? OTEC uses the
         (OTEC) are hoping that the technology will finally get a   temperature differences in surface seawater and deep ocean
         foothold in the Pacific, following their recent mission to Fiji.  water to run a heat energy cycle in a closed-looped system
          A Regional Energy and Transport Ministers’ meeting in   that generates carbon-free electricity.
         Vanuatu in May this year committed to developing an ocean   “Warm water at 28 degrees centigrade can boil a working
         readiness programme to prepare their countries for future   fluid. It transfers heat to another fluid which at 28 degrees
         ocean renewable energy technologies.                centigrade is a gas. So that runs a turbine. And then with cold
          The concept of ocean energy has been around for decades.   deep water, it is used to condense that vapour back into a
         In 1981, a land-based OTEC plant was tested in Nauru, but it   liquid. It’s quite unique as a base-load power technology that
         was destroyed by a tropical storm.                  can run 24 hours a day, 365 days a year,” said Grech.
          Then in 2019, a South Korean-led OTEC project in South   He continues: “[And] what’s interesting about these pilot
         Tarawa, Kiribati was piloted, but performed more poorly than   facilities is they are not just demonstrating that they can
         expected.                                                                             produce electricity.
          Now a UK-based                                                                       That deep ocean
         company is hoping                                                                     water is being
         to introduce                                                                          used for local
         weather-resistant                                                                     businesses. They
         OTEC structures in                                                                    say in Japan, it’s
         the region.                                                                           adding US$26
          Global OTEC                                                                          million to the
         Founder and Chief                                                                     local GDP. People
         Executive Officer,                                                                    are using that
         Dan Grech, and                                                                        water to make
         his team from                                                                         algae bioreactors,
         London met                                                                            they’re producing
         potential partners                                                                    pharmaceuticals,
         during a recent                                                                       they’re growing
         visit to Fiji, “to                                                                    crops because of
         understand how                                                                        the properties of
         OTEC would fit                                                                        the ocean water
         within Fiji’s policy                                                                  and the nutrients
         frameworks, what   Engineer Jeke Pai, Dan Grech, Permanent Secretary Taitusi Vakadravuyaca and Andreas Koall.  that are really
         challenges might                                                                      useful.
         be for integration technology and how we can set up the pilot   “When you start to show the scalability of OTEC across
         project for success.”                               the tropical region, there are a lot of oil and gas companies
          “Fiji wants to have a pilot project [in OTEC], and we are   looking to diversify [their services],” said Grech. “If they’ve
         here as technical experts to facilitate that,” he told Islands   got deep water offshore experience, and they don’t want to
         Business.                                           jump on the wind, hydrogen or carbon capture verticals that
          While Global OTEC does not have Pacific Islands experience,   nearly all of them are going into, this is a great niche for
         it knows the Caribbean context quite well, Grech says.  them to work in”.
          He notes that Hawaii and Japan are the epicentres of OTEC   While the technology seems promising, it has been met with
         development in the Pacific region and says Global OTEC is   other challenges, particularly policy and finance barriers.
         “building on that with our systems as well. We’re utilising   “I get the feeling that there’s an openness to public-private
         what’s already been proven.                         partnerships in this region where just by accessing those
          “I think what will happen in Fiji will be very similar to the   finances that wouldn’t otherwise be available for business-
         Japanese or Hawaiian pilot facilities of very similar scale.   as-usual projects, allows us to see the unit cost of energy
         That involves shipping containers, somewhere on the coast,   around half to what the diesel prices are in these islands.
         that we will agree with the Department of Environment for a   That applies less to Fiji because there’s such a hydropower



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