Ocean Thermal Energy Conversion Life Cycle Cost Assessment, Final Technical Report, 30 May 2012

Abstract

The Ocean Thermal Energy Conversion (OTEC) Life Cycle Cost Assessment (OLCCA) is a study performed by members of the Lockheed Martin (LM) OTEC Team under funding from the Department of Energy (DOE), Award No. DE-EE0002663, dated 01/01/2010. OLCCA objectives are to estimate procurement, operations and maintenance, and overhaul costs for two types of OTEC plants: -Plants moored to the sea floor where the electricity produced by the OTEC plant is directly connected to the grid ashore via a marine power cable (Grid Connected OTEC plants) -Open-ocean grazing OTEC plant-ships producing an energy carrier that is transported to designated ports (Energy Carrier OTEC plants) Costs are developed using the concept of levelized cost of energy established by DOE for use in comparing electricity costs from various generating systems. One area of system costs that had not been developed in detail prior to this analysis was the operations and sustainment (O&S) cost for both types of OTEC plants. Procurement costs, generally referred to as capital expense and O&S costs (operations and maintenance (O&M) costs plus overhaul and replacement costs), are assessed over the 30 year operational life of the plants and an annual annuity calculated to achieve a levelized cost (constant across entire plant life). Dividing this levelized cost by the average annual energy production results in a levelized cost of electricity, or LCOE, for the OTEC plants. Technical and production efficiency enhancements that could result in a lower value of the OTEC LCOE were also explored. The thermal OTEC resource for Oahu, Hawaii and projected build out plan were developed. The estimate of the OTEC resource and LCOE values for the planned OTEC systems enable this information to be displayed as energy supplied versus levelized cost of the supplied energy; this curve is referred to as an Energy Supply Curve. The Oahu Energy Supply Curve represents initial OTEC deployment starting in 2018 and demonstrates the predicted economies of scale as technology and efficiency improvements are realized and larger more economical plants deployed. Utilizing global high resolution OTEC resource assessment from the Ocean Thermal Extractable Energy Visualization (OTEEV) project (an independent DOE project), Global Energy Supply Curves were generated for Grid Connected and Energy Carrier OTEC plants deployed in 2045 when the predicted technology and efficiencies improvements are fully realized. The Global Energy Supply Curves present the LCOE versus capacity in ascending order with the richest, lowest cost resource locations being harvested first. These curves demonstrate the vast ocean thermal resource and potential OTEC capacity that can be harvested with little change in LCOE.