Lockheed Martin Corporation
) has entered into an agreement with Reignwood Group to develop
an Ocean Thermal Energy Conversion (OTEC) pilot power plant
located off the coast of southern China.
Per the agreement, this offshore plant with an electric
generation capacity of 10 megawatt (MW) will be designed by
Lockheed Martin. The plant will supply all the power required by
a green resort being built by Reignwood Group.
Ocean Thermal Energy Conversion is a process that can produce
electricity by using the temperature difference between deep cold
ocean water and warm tropical surface waters. This technology is
best suited for island and coastal communities where energy
transportation costs for other sources of power are very
Like other renewables, namely, solar and wind, OTEC plants
provide clean and sustainable energy. An OTEC facility with an
electric generation capacity of 100MW produces equivalent energy
that is produced by 1.3 million barrels of oil in a year. the
same time it lowers carbon emissions by half a million tons.
When compared to other renewable energy technologies, power from
OTEC plants can be produced round the clock 24x7. OTEC is however
a highly capital intensive process. Yet, higher electricity costs
and increased concerns for global warming have made the use of
OTEC attractive in tropical island communities.
Once the Chinese plant comes online, both the parties intend to
hone their skills to improve the design of additional
commercial-scale plants to be built over the next decade. Going
forward, this agreement could build the foundation for the
development of several additional OTEC power plants in the range
of 10MW to 100MW.
This is not the first time that the largest defense contractor,
Lockheed Martin has been involved in an OTEC agreement.
Previously, Lockheed Martin tied up with Makai Ocean Engineering
for the development of 100MW OTEC plants for island communities
in Hawaii and Guam.
The company presently retains a short-term Zacks Rank #3 (Hold).
Other stocks worth considering are
Wesco Aircraft Holdings, Inc.
B/E Aerospace Inc.
Honeywell International Inc.
), all with a Zacks Rank #2 (Buy).
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