ECONOMIC EVALUATION         

     With present technology we are now confident in proposing a 100 MW_net OTEC production system on an off-shore platform requiring only a vertical cold water supply line. The capital cost for such a system would be approximately $400 million. Using a 6% interest rate and a 20 year project period this works out to about $0.04/kW_hr. The OTEC electric power production O&M costs are very low since the Kalina Cycle^® is low temperature and low pressure and the whole process is easy to automate.

     Once the electricity is generated, hydrogen production by electrolysis and liquefaction by the updated Claude process would be the same as with other systems. Such systems, as the Iceland system or the Euro-Quebec project, have established this technology.

     The capital expenditure for the hydrogen production and liquefying system is expected to be about $200 million. Using the same capital recovery factor as developed for the electricity production and considering the efficiencies of hydrogen production (85%) and liquefying (70%) this translates into another $0.033/equivalent kW_hr. Additionally, there are O&M costs associated with the hydrogen production, liquefying, and transport. These are estimated to be an additional $0.03/equivalent kW_hr. All this results in a total of about $0.103/equivalent kW_hr LH₂ FOB. This translates into $0.24/liter of LH₂ not counting any profits, insurance, taxes or other expenses.

     The current price for LH₂ FOB Amsterdam (2002) is about $1.00/liter. This makes OTEC hydrogen roughly compatible and profitable within present market conditions.

     Currently, several companies, including General Motors, Daimler-Chrysler, BMW, and Honda are all designing hydrogen powered vehicles. The only energy system with the base capacity to provide hydrogen to all of these vehicles and power plants is OTEC.