December 18, 2009 Pierre Cannon Sumon Nandy Amy Nandy

Problem Statement, Mission Problem Statement: A clean, renewable energy source that provides baseload power without impacting the environment, regardless of seasonal weather conditions, does not exist for supplying power to African nations. Mission: To develop a feasible architecture and business strategy for an Ocean Thermal Energy Conversion system deployed off the African coast. OTEC African Deployment12/18/20092

Project Team Role Sponsor : Lockheed Martin Team Role: Research Contractor Sponsor Focus Areas Tasks: Feasibility study for possible OTEC site off African continent Investigation of planning activities required for OTEC deployment Development of location specific requirements for area Business/Financial plan for profitability in 30 years 12/18/20093OTEC African Deployment

OTEC Description Oceanic Thermal Energy Conversion OTEC utilizes the ocean’s 20ºC natural thermal gradient between the warm surface water and the cold deep sea water to drive a Rankine Cycle OTEC utilizes the world’s largest solar radiation collector - the ocean. The ocean contains enough energy power all of the world’s electrical needs. 12/18/20094OTEC African Deployment

1. Power input to pumps to start process 4. Expanding vapor drive the turbine, and electricity is created by a generator 5. Heat extraction from cold-water sink to condense the working fluid in the condenser. Cycle begins again Return to step 2 3. Heat addition from the hot- water source used to evaporate the working fluid within the heat exchanger (Evaporator) 2. Fluid pump pressurizes and pushes working fluid to evaporator OTEC African Deployment 5

OTEC Project Development Process 12/18/20096OTEC African Deployment

Work Products Cost Model Risk Management Strategy House of Quality System Description Document Business / Marketing Approach System Architecture Views (SV-) System Functionality Sequence Model Technology S-Curves CPN Simulation Model Project Schedule 12/18/20097OTEC African Deployment

Stakeholder Needs Analysis OTEC African Deployment OTEC System Design Team Lockheed Martin GMU SEOR Faculty Partners / Subcontractors Interfaces Ocean Environment Electric Company Financing Group Competitors Oil Industry HydroPower Local Community Citizens Local Gov’t Environmental African Sustainable Energy Special Interest Groups 12/18/20098 Engineering Characteristics Evaluated using House of Quality Prioritized Stakeholder Needs 1. Competitive Energy Cost 2. Minimal Time to Market 3. Replaces Non-renewable sources 4. Adaptable to Future Markets 5. Scalable Capacity Related Engineering Characteristics 1. High Efficiency Components 2. Utilize Commercial Components 3. Subsystems powered by system power output 4. Modular design for power producing systems

Regulations & Standards Platform Safety: Maritime Safety (DOT, USCG 46 CFR) Luminaries (UL 1598A) Electrical Installations on Shipboard (IEEE P45.1, P45.5) Designing & Construction of Floating Platforms (API RP 2FB) Underwater Cabling: Design & Construction (IEC ; NAVY OPNAV B) Sheathing (IEC , -359) Installation & Test (IEC , -352; IEEE 45 INT 1-2) Workforce Safety: Job Hazard Analysis (OSHA 3071) Workplace First Aid (OSHA 3317) Hazardous Waste Operations (OSHA 3172) Occupational Health & Safety (OSHA 29-CFR ) Habitation on Offshore Installation (ABS Pub. 105) 12/18/20099OTEC African Deployment

Other Considerations Supplier Qualification Several key components to be sourced (Water Pump, Turbine, Generator, Heat Exchangers & Power Cabling) Institution of Preferred Supplier Qualification System Process/Product control plan to ensure quality components & participation in the auditing of their processes Suppliers will be empowered - push high standards of quality to 2 nd tier suppliers since their company reputation is at stake Standards Based Procurement - ensure that even the 2 nd tier vendors push for quality - end products delivered to the OTEC system have higher reliability Integrated Logistics Support Maintainability support for equipment Support team to handle any questions/issues during program execution, with trained staff to deal with all situational needs 12/18/200910OTEC African Deployment

Trade Study Research 12/18/200911OTEC African Deployment

Sponsor Requirements Location shall be located off the African coast Humanitarian efforts strengthen US ties with African nations Sponsor has not conducted in-depth research in this area Africa is becoming a hot topic in Renewable Resources Locations shall provide: At least 20° C temperature difference between surface water and 1000 m deep water Economic Stability Political stability (reduces program risk) Established power infrastructure to I/F with OTEC Little or no coastal pirating crime OTEC African Deployment1212/18/2009

Africa Continent Overview Over 500M people, yet 75% of landmass uninhabited Highest birthrate of any continent with population expected to reach 2B by 2050 Fastest growing region on earth – facing most serious problems of food and water High potential for commercial OTEC plant off western coast Political instability & poor infrastructure plague the continent 12/18/200913OTEC African Deployment

Possible OTEC Locations 12/18/2009OTEC African Deployment14

Technical Case Operational Concept Scope and Context Architecture Evaluation Functional Decomposition Architecture Development DoDAF Diagrams Executable Architecture 12/18/200915OTEC African Deployment

Operational Concept 12/18/200916OTEC African Deployment

OTEC System P-Diagram OTEC System Controls Water Pump Fluid Pump OTEC CPU Turbine Generator Heat Exchangers Pipes Working fluid (Noise Factors) Temperature Sea state Weather Corrosion (Output Functions) Power Water (Input Signals) Water Startup Power 17OTEC African Deployment

Architecture Evaluation Closed Cycle OTEC is the Most Feasible and Mature Approach 12/18/200918OTEC African Deployment

Functional Decomposition 12/18/200919OTEC African Deployment

External Systems/Context Diagrams Context Diagram 12/18/200920OTEC African Deployment

OTEC IDEF0 12/18/200921OTEC African Deployment

Architecture Development System Functional Mapping Architecture Behavior Business Strategy OV-1, OV-4, OV-5 SV-3, SV-4, SV-5a OV-6C, SV-10 CPN Tools SV-8, SV-9 Market Analysis 12/18/200922OTEC African Deployment The Six Stage Process: Structured Analysis L. Wagenhals, A. Levis, SYST 621

DoDAF Diagrams Utilized CORE v5 to develop DoDAF views Developed applicable DoDAF diagrams for an interoperable architecture 12/18/200923OTEC African Deployment

OTEC System Requirements 12/18/200924OTEC African Deployment

Executable Architecture Leads to significant new insights into the design and operation of the OTEC system The structure CPN model is directly related to the functionality represented in the architecture 12/18/200925OTEC African Deployment Video Simulation

Executable Architecture Results The executable CPN model provided additional input into the logical flow of the system System Control function benefited the most from the model How to can the system be adjusted to maintain optimum performance How can the system be stopped in the event of an error Led to additional requirements to perform control functionality 12/18/2009OTEC African Deployment26

Market Analysis World Energy Goals Increase efficiency Decrease dependence on foreign oil Clean, Carbon Free Fuels Renewable sources Renewable Market Trends Renewable energy market will grow at 431% in the next 10 years Oil predictions at 26% and natural gas at 46%. Oil Industry Driving Change due to Rapidly Rising Costs, Limited Resources and Political Instability in Major Supplying Countries Data Source: OPEC 12/18/200927OTEC African Deployment

Investment Strategy First commercial plant in areas with high $/kWh Investor may have funds up-front or financing agreement Installation timing may impact subsystem technology choices Utilize Patent process, proprietary markings, and legal teaming agreements 12/18/2009OTEC African Deployment28 DeploymentContract TypeRiskProfit InternalIR&DHigh Third PartyLicense AgreementLow Shared ResponsibilityPower Purchase AgreementMed Alternative Investment Strategies Market Introduction HI Pilot OTEC Plant Commercial OTEC Plant Establish Investment Partner Sign PPA

Program Risks 16 Risks identified in Risk Register Each risk has a Risk Mitigation Strategy, Status, Probability, & Overall Risk Importance – calculated as the sum of Schedule, Cost and Performance Impact Impact Scores are on a scale of ‘0’ (No Impact) to ‘10’ (Extremely High Impact) 12/18/200929OTEC African Deployment OTEC Program Risk R15 OTEC Program Risk Register

Affordability Calculations Assumptions 100 MW Capacity, 99% Uptime, 30 year Financing at 8% Power Co. and Investor require 25% of income for internal costs Sponsor sale price for system affordability: $307M 12/18/2009OTEC African Deployment30 Net Present Value is $1.7B in 30 years Cash Flow Analysis Discrete Chance Nodes Sales Income Growth O&M Cost Growth Fixed Expenses $307M Investment

Growth Potential Electricity Capacity Expansion Additional OTEC systems could be installed Current system could be upgraded to include more power modules Clean Water System Use the power created to create clean water Install an “Open-Cycle” system to create both at once Alternative Technology Solutions Geo-OTEC to power Oil Platforms Renewable Fuels – Ammonia as a Carbon Carrier Agriculture – Ammonia as a fertilizer 12/18/200931OTEC African Deployment

Summary and Conclusions Consider methods to reduce system cost, consider: Sell directly to city to remove “middle-man” Platform cost savings: less-robust design, shorter CWP Recommend Africa installation after OTEC is ‘proven’ at large scale Alternative technology approaches increase possible installation area to include colder water regions Way Forward Recommendations Meet early and often with environmental policy teams regarding licensing and permits to ensure compliance and a clear path ahead Begin talks with Nigerian government to express interest in developing OTEC near Lagos; Establish a partnership with power distributor Verify ocean temperatures & geography; Consider university research 12/18/2009OTEC African Deployment32

Thank You Lockheed Martin Corporation Dr. Ted Johnson Kiffin Bryan GMU SEOR Faculty Dr. Thomas Speller Dr. Abbas K. Zaidi Faculty Reviewers 12/18/200933OTEC African Deployment

Stakeholder Value Mapping 12/18/200934OTEC African Deployment

House of Quality 12/18/200935OTEC African Deployment Quality Analysis

Risk Register 12/18/2009OTEC African Deployment36

OTEC African Deployment

Project Plan WBS Developed based on Project Guidance Tasks organized and linked in MS Project 12/18/200938OTEC African Deployment

Architecture Development L. Wagenhals, A. Levis, SYST 621 Lecture 8 12/18/ OTEC African Deployment

Technology S-Curves Key technology Focus Areas Cold Water Pipe Turbine Technology 12/18/2009OTEC African Deployment40 Cold Water PipeTurbine Technology

CPN Model 12/18/2009OTEC African Deployment41

CPN Simulation Video 12/18/2009OTEC African Deployment42