Bahamas Eco-Forum

Agreement to Build OTEC Plants in Bahamas

by Larry Smith

Ocean Thermal Energy Corporation of Lancaster, Pennsylvania has signed a Memorandum of Understanding with the Bahamas Electricity Corporation to explore renewable energy resources in the Bahamas.

The agreement calls for the construction of two 10 megawatt OTEC (ocean thermal energy conversion) plants on New Providence and Andros in a "first of its kind' deal to commercially produce clean energy, potable water and sustainable aquaculture using ocean water. BEC's peak load is 230 megawatts.

"If the MOU achieves its full potential this would put us on the cutting edge," BEC chairman Michael Moss said. "It's going to mark our first tangible steps in renewable energy. We may not have pursued other renewable energy opportunities as aggressively as we ought, and we're going to look more seriously at solar and tidal energy."

Bahamas Could Become Oil-producing Province

by Larry Smith

Domestic production of oil and gas is the real elephant in the Bahamas. And if you think the opposition to LNG terminals here was vociferous, just wait until the campaign to stop oil drilling begins. At stake will be a potential transformation of the Bahamian economy and environment.

Five oil wells have been drilled in Bahamian waters since 1947, when the first was drilled off Andros. In 1959 there were oil shows from a well on the Cay Sal bank. And wells drilled off Long Island and at Great Isaacs north of Bimini in 1970 both had minor oil shows. The last well was drilled by Tenneco in 1986, but was abandoned due to a collapse in petroleum prices.

The latest entrant - the Isle of Man-based Bahamas Petroleum Company - is convinced (as most experts have been for years) that major oil and gas reserves lie under the Bahamian seabed, and technology has now advanced to the point where they can be exploited economically. This will have a huge impact on our marine environment, because a significant percentage of any oil produced offshore spills into the sea.

LNG Exports from US Could be Part of Energy Mix

by Larry Smith

The extraction of oil and gas from beneath the Bahamian seabed is a medium-term likelihood that many may instinctively oppose for environmental reasons. But we could cut costs and pollution now by generating electricity from liquified natural gas - imported from the US.

That's a scenario made possible by the development of large, unconventional gas fields in the US. Right now, the cost of natural gas is much cheaper than oil, and burning gas instead of heavy fuel oil or diesel produces 30 per cent less pollution.

The recent increase in North American gas reserves, combined with projected growth in global demand, will make the US a major liquified natural gas exporter over the next few years, experts say. This is in sharp contrast to previous years, when the US was seeking to import LNG from the Middle East and Trinidad.

Natural gas accounts for about 16 per cent of the global energy mix, but the US has near zero LNG export capacity. Existing LNG import terminals in Louisiana and Texas are already adding liquifaction capacity to allow for major LNG exports by 2015.