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Home›Business & Finance›$3.5M contract sets stage for OTEC deployment at remote US Army base
Business & Finance

January 15, 2025 · about 1 year ago

$3.5M contract sets stage for OTEC deployment at remote US Army base

The U.S. renewable energy company Ocean Thermal Energy Corporation (OTE Corp) has secured a $3.5 million contract from Johnson Controls for engineering planning and design under the U.S. Army’s Deep Energy Retrofit Assessment program at the U.S. Army Garrison Kwajalein Atoll (USAG-KA), a remote inst

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Ocean Thermal Energy Corporate's OTEC system

The U.S. renewable energy company Ocean Thermal Energy Corporation (OTE Corp) has secured a $3.5 million contract from Johnson Controls for engineering planning and design under the U.S. Army’s Deep Energy Retrofit Assessment program at the U.S. Army Garrison Kwajalein Atoll (USAG-KA), a remote installation in the Republic of the Marshall Islands.

According to OTE Corp, the company will demonstrate the feasibility of deploying a 17.5 MW ocean thermal energy conversion (OTEC) system, providing a sustainable energy solution that reduces reliance on imported fossil fuels.

DCO Energy, which will serve as the owner’s engineer, is said to be tasked with developing an OTEC system design covering load analysis, conceptual engineering, and cost estimation.

The contract outlines key objectives, including evaluating the practicality of deploying OTEC systems for remote military sites, ensuring reliability and scalability under real-world conditions, and customizing OTEC solutions for uninterrupted power supply and water desalination in collaboration with the U.S. Army Corps of Engineers.

OTE Corp’s OTEC technology leverages the ocean’s natural temperature gradient to generate continuous power and desalinated water. This fits within the Army’s broader strategy to enhance energy security and resilience at critical installations like Kwajalein Atoll, the company noted.

Aside from energy generation, the team is also set to explore the potential for seawater desalination to enhance water resilience at the USAG-KA site.

“Partnering with Johnson Controls underscores the transformative potential of OTEC technology,” said Jeremy P. Feakins , Chairman and CEO of OTE Corp.

“This initiative not only enhances operational resilience for military bases but also represents a significant step forward in integrating renewable energy into national defense strategies.”

OTE Corp develops and operates clean hydrothermal energy plants using OTEC and seawater air conditioning (SWAC) technologies. The company said it provides 24/7 baseload electricity, energy-efficient cooling systems, and potable water. Regarding other OTEC activities in the U.S., at the end of 2023, Makai Ocean Engineering signed an agreement with Shell Technology – Marine Renewable Program to further develop and test potentially transformative proprietary technologies that advance the engineering and economic viability of an offshore ocean thermal energy conversion (OTEC) system.

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