Wedoany.com Report-Jun 24, The Barbados Investment & Development Corporation (BIDC) has signed a memorandum of understanding (MoU) with UK-based Global OTEC to explore the deployment of ocean thermal energy conversion (OTEC) systems in Barbados. The collaboration is part of BIDC’s Bloom Clean Technology and Climate Tech Center of Excellence initiative and supports the country’s sustainable energy goals.

Consultant Manager Bloom Clean Technology & Climate Tech Center of Excellence - Damien Prescod / CEO of Global OTEC, Dan Grech.

The agreement outlines cooperation in areas such as technical assessments, stakeholder engagement, and site evaluations for potential OTEC system implementation. OTEC technology uses the natural temperature difference between warm surface water and colder deep seawater to generate continuous baseload electricity. This system could serve as a low-carbon alternative to diesel power, benefiting over 282,000 residents on the island.

BIDC CEO Mark Hill stated: “Small Island Developing States need to innovate in their industrial development thinking and their approach with regards to their energy security and sovereignty, manufacturing and processing, technical capacity development, scientific knowledge acquisition and technology transfer for future focused careers and sustainable economic growth.”

Hill also noted that energy price fluctuations caused by global supply chain disruptions and geopolitical factors have made small island economies more vulnerable. He emphasized the need for sustainable solutions: “Greening our industrial estates through innovative technology will remain a key strategic objective at the Corporation, especially if the technology under consideration can positively impact our manufacturing and commodity export portfolio.”

Barbados has set a target to become carbon-neutral by 2030. Reducing reliance on imported fossil fuels is a central part of this commitment, and OTEC is being explored as one of the possible technologies to support the country’s transition. The modular nature of Global OTEC’s systems allows for integration into island grids and can provide backup in the event of extreme weather disruptions.

Global OTEC is also leading the EU-funded PLOTEC project, which focuses on developing storm-resilient floating platforms suitable for regions with high exposure to severe weather, including the Caribbean.

Global OTEC CEO Dan Grech commented: “Barbados continues to lead by example in the global blue economy. This MoU builds on our longstanding engagement with the country and signals our commitment to making Barbados the launchpad for a Caribbean cluster of ocean thermal projects. We can unlock clean, reliable power from the ocean, and Barbados is showing the region how it can be a lighthouse for the region.”

Electricity prices in the Caribbean are among the highest in the world, often exceeding USD 0.25 per kWh and reaching above USD 0.40 in some areas. Over 90% of electricity generation in the region currently depends on fossil fuels. Global OTEC stated its systems could reduce diesel-based power costs by up to 50%, while also supporting Barbados’ interest in developing green hydrogen.

In March, Global OTEC introduced its first onshore pilot of the OTEC Power Module, a compact, continuous power generation system based on ocean temperature gradients.