IOA News Letters Summary

The development of a Net Power Producing Experiment (NPPE) for Open-Cycle Ocean Thermal Energy Conversion (OC-OTEC) continued its aggressive schedule to have an operating 210 kW (gross) radial inflow turbine generator system operating by June 1992. The preliminary design was completed and approved by the U.S. Department of Energy (DOE). Final design phase is well underway and the final design review is scheduled for February 1991. Acquisition of the radial inflow turbine is underway with the signing of a contract, May 1990 with the Mechanical Technology Industries (MTI) of Latham, New York.

Efforts continue between Alcan ,GEC-Marvoni ( a Canadian-British group), the Hawaiian Electric Renewable Systems, Inc. ( HERS), and other Hawaiian companies to establish a Hawaiian-based OTEC company. The company plans to design, construct and operate a 160 kW plant using aluminum rolled bonded heat exchangers. The 160 kW plant is now scheduled for initiation in March 1991

Recently the Internal Revenue Service (IRS) of the United States was petitioned by GenOtec of Washington, DC and the State of Hawaii for tax credits to permit more rapid cost recovery for OTEC properties. The Internal Revenue Code was modified by the Energy Tax Act of 1978 and amended by the "Crude Oil Windfall Profit Tax Act of 1980" to include OTEC property as qualifying for energy tax credits.GenOtec applied for the credits in the Caribbean, The State of Hawaii applied for credits in Hawaii and U.S. Trust Territories Both GenOtec and the State of Hawaii were notified than their requests had been approved.