 Before building the first commercial demonstration sea thermal power plant, Sea Solar Power has embarked on an extensive development program. This program is designed to prove the performance of many of the critical elements in a plant and predict manufacturing costs. Although the development program is not complete at this date, sufficient testing and knowledge has been gained to demonstrate a predicted level of performance for all the key elements. SSP can construct a demonstration plant with the present state of knowledge that will work well. It is planned that additional testing on board the first plant will allow us to improve components and design. The plant design is modular so that as an improved element is built, the original part could be removed and replaced with the new and better component.
Funding for the First Plant
Several funding sources have taken an interest in funding and/or offering guarantee of loans to build a first plant. The US Maritime administration has a loan guarantee under the “Jones Act” which has been extended to OTEC plants built in a US shipyard and operated as a US flagged vessel. Appropriations associated with underwriting this program must be fulfilled by the US Congress.
 Marketing
The SSP strategy is to identify sites and cooperative host governments that will purchase all the power from a 10-30MW electric plant through a power purchase agreement. The first demonstration plant will serve as a test bed for improved machinery but with oil at $60-$80/bbl range.. . . to the customer. Sea Solar Power and Sea Solar Power International (Abell Foundation) are seeking to contract through “Power Purchase Agreements” (PPA) with utilities, countries and companies which have a desire to pursue the immense advantages and benefits provided by the SSP technology. As future plants are built and the technology matures, the cost of SSP plants will come down and early users will benefit first.
Hurdles
- Fear of individual users to be first since the United States, the world’s technology leader, has not taken the initiative
- Fear of individual investors to be involved when a government has been unwilling to share risk for demonstration plants
Although small experimental plants have been built both in open cycle and in closed cycle, a full size and continuously operating commercial demonstration plant has not been built. A demonstration plant would be small say 10 MW to 40 MW size, but it will be expensive. A small floating demo plant of SSP design floating close off shore will probably in the cost range of $100-200 million dollars.
Overcoming the Hurdles
 We do not need a government research program to find technical solutions. We have the technology. It will become refined as the demo plants operate and we learn the problems and how to solve them. Improved equipment will come as a result of experience on board an operating plant.
A US Federal loan guarantee program and/or a similar program from states or other countries to help mediate the risk on initial plants would be extremely helpful to get over the initial fears of investors.
Power purchase agreements from US government entities such as military or NASA locations, would be helpful to dispel risk on initial plants.
A small SSP demo plant, floating close off shore, will probably cost 100-200 million dollars.
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