Lockheed Martin (NYSE: LMT) signed a memorandum of agreement with Reignwood Group to develop a 10 MW Ocean Thermal Energy Conversion (OTEC) pilot power plant off the coast of southern China.
Lockheed Martin will design the plant for a low-carbon, large-scale resort to be built by Reignwood Group. OTEC takes the natural temperature difference found in the ocean in tropical regions and uses it to create power. The power is baseload and is well-suited for island and coastal communities where energy transportation costs typically make other sources of power expensive.
Once the plant is operational, both companies will use the knowledge to improve the design of additional commercial-scale plants to be built over the next 10 years.
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