SEA SOLAR POWER,Inc.

A Vast Untapped Source of Low Cost Electricity

Renewable /Safe /Totally Pollution-Free

A Vast Untapped Source ofLow Cost Electricity

Renewable /Safe /Totally Pollution-Free

Approximately 70% of the earth is covered bywater. In equatorial regions oceans cover nearly90% of this surface segment of the earth. Theseoceans collect and store solar energy. Becausewater arranges itself by temperature and density,the warmest water, being the lightest, is on thesurface. Cold heavier water lies deep below.

A stationary floating plant skims off a small per-centage of the surface layer to use as the heat

source. For the heat sink, the plant has a largediameter submerged pipe to pump up the heavierfrigid water below.

A small amount of heat is extracted from thewarm water and a lesser amount is put into the cold water. The net difference in energy flow isturned into electricity and fresh water and/or fuelsand other useful products. Electricity is transmit-ted to shore through an underwater cable.

Sea Solar Power Reduces Global Warming….And More!Prompt, widespread deployment of Sea Solar Power Plants will mitigate the effects of global warming,

decrease the world dependence on oil, increase food supplies, and benefit all people economically.

No fuel burned - All the problems of air and waterpollution, strip mining and waste disposal are elimi-nated. No smoke, fumes, oil spills or thermal pol-lution. No greenhouse gases.Road to Energy independence - OTEC stands asthe best option for the USA and other nations togain energy independence. At the moment,a handfulof petroleum-rich countries have a choke hold onthe rest of the world. Countries can become inde-pendent by using their own nearbyocean waters tosupply a large part of their electricity, fresh water,fuel, and food.

Fishing - Cold water, drawn from the depths, isnutrient-rich and can significantly increase fish-ing yields. Fresh water - A potentially immense by-productof the power cycle, for drinking and agriculture.Abundant resource - 40 million square miles oftropical ocean suitable for OTEC close to major

populated countries. Ideal for southeast of US,southern tip of Baja California, Hawaii,Caribbean, Central and South America, Africa,Middle East, India, Southeast Asia, China andTaiwan, Philippines, Indonesia, Japan, andAustralia. (See map)Hurricane Resistance - Sea Solar Power plantsare 95% submerged below wind and wave action.Modern floating drill rigs have a higher profile,stay on station, and survive severe storms. Ocean Location - No effect on real estate market,no legal battles over plant siting. No land struc-tures marring scenic vistas.A Host of By-Products -A Sea Solar Power plantcan also produce other energy intensive productsincluding:

• Hydrogen as fuel • Methanol as liquid fuel• Ammonia for fertilizer • Industrial gases

See page 5 for breakdown of Products

Any power plant generates electricity by using a heat engine. Simply defined, a heat enginerequires a source of heat and a source of cold (“heat sink”). Conventional power plants burncoal, oil, natural gas, and other fuels to supplythe heat. Nuclear plants use fissionable fuel tocreate heat. For heat sinks, these plants typicallyemploy cooling towers, rivers, lakes, or oceans.

The Sea Solar Power Difference

Also known as Ocean Thermal EnergyConversion (OTEC), Sea Solar Power uses thenaturally-occurring temperature difference foundin the tropical oceans to drive its heat engines.

Anadvancedtechnology to access this huge,renewable resource economically has beendeveloped over 40 years by Sea Solar Power,Inc.

OTEC is the only alternativeenergy source, that can delivercontinuous power 24/7, rain orshine, day and night.

2 3

The difference in solar heated surface watertemperatures of about82F(28C) and the frigid water 42F(6C), 4000 ft (1200m) deep, is enough to generate a constant supply of electricity, 24 hours a day with no pollution of any kind!

Ocean region applicable for OTEC. Numbers on the map refer to temperaturedifferences in degrees Celsius. The greater the difference, the better the resource.

t

Sea Solar Power Provides An Endless Source of Energy With No Polluted Air or Global Warming Sea Solar Power Provides An Endless Source of

Energy With No Polluted Air or Global Warming

(6C)

(28C)

What Are We Waiting For?

The demand for low-cost, environmentally-friendly energy continues to grow as the world’s population explodes and Third World nations modernize. Everyone is searching for new ways to meet this need. There is one, Sea Solar Power.

What Are We Waiting For?

The demand for low-cost, environmentally-friendly energy continues to grow as the world’s population explodes and Third World nations modernize. Everyone is searching for new ways to meet this need. There is one, Sea Solar Power.

© 2007, Sea Solar Power, Inc. All rights reserved.

A Quick Look at Some CurrentMethods of Power Generation

Oil and Natural Gas: Both in relatively shortsupply. New wells and extraction methods makecosts rise for new supplies.

Coal: Less costly than oil but polluting andcostly for waste cleanup. Mercury emissionsenter the food chain and affect the health ofunborn children.(Above three sources releasecarbon dioxide to the atmosphere, a major causeof global warming.)

Nuclear Power: Radioactive waste creates anenvironmental hazard for thousands of years.Serious malfunction of a nuclear plant or a ter-rorist attack could cause a disastrous meltdown.

Hydro/Dams: Environmentally friendly butmost available sites already utilized.

Wind Power: Environmentally friendly butresource is intermittent, requiring reliable back-up power plants.

Solar Power: Environmentally friendly butneeds large areas of unshaded land and onlymakes power when sun shines. Needs largestorage systems for night loads and/or backuppower plants on cloudy days and nights.

OTEC is the only alternativeenergy source, that can delivercontinuous power 24/7, rain orshine, day and night.

The Tremendous Potential of Sea Solar Power

A Sea Solar Power Plant has five major compo-nents, with interconnecting piping, to produceelectricity. (1) A boiler (2) A condenser (3) Avapor turbine generator (4) Pumps (5) A workingfluid, which vaporizes and condenses between82F (28C) and 42F (6C).

The warm surface ocean water is pumped to theboiler, which transfers heat to the working fluid,turning it into a high-pressure vapor. The turbinegenerator spins as the vapor rushes through it toreach the low-pressure condenser, which is

cooled by the nearly freezing water brought upfrom the ocean depths. After condensing, theworking fluid is sent back to the boiler to bereused and to repeat the cycle.

Pumps are needed to bring the cold water upfrom the deep and through the condenser. Otherpumps move the warm water through the boiler.The power for moving these very large waterflows, plus the power to move the working fluidfrom the condenser to the boiler, consumes about20% of the total power generated (120MWGross for 100MW Net).

Hilbert Anderson and new centrifugal vacuum pump

A design of a 100,000 kilowatt(100MWNet) floating plant, including unique features

developed by Sea Solar Power, Inc.

4 5

Many useful by-products can beobtained from the warm and coldwater resource using a little or all ofthe power produced in the plant. Seethe diagram to the right. Fish willbenefit from the nutrient rich coldwater discharged from the plantbeneath the surface layers. This willbe like fertilizing a field. Fresh waterfor human consumption and agricul-ture is an important by-product andcan be barged to shore. Hydrogenfor fuel cells or direct fuel burningand/or methanol can be produced fortransportation fuels.

Pay Back Time

At a projected weight of approximately 28,000tons, we can estimate the cost of a 100MW SeaSolar Power plant using standard shipyard con-struction per ton pricing. After 1 or 2 plants arebuilt, we can expect that manufacturing of thecomponents and assembly will settle below$8000-12,000/ton. Using $12,000/ton, a 100MWplant would cost about $336 million. The prod-ucts could vary but it is clear that plants can bebuilt and paid off in a relatively short period. Theoperation and maintenance costs are relatively lowand the staffing to operate a plant is minimal.

The Tremendous Potential of Sea Solar Power

Potential products from 100MW floating plants.

How A Self-Contained Floating Sea Solar PowerPlatform Generates Low Cost Electricity

How A Self-Contained Floating Sea Solar PowerPlatform Generates Low Cost Electricity

1. BOILERS2. CONDENSERS 3. WARM WATER INLET 4. WARM WATER EXHAUST 5. COLD WATER EXHAUST 6. COLD WATER PIPE 7. TURBINE GENERATOR 8. WARM WATER PUMP 9. COLD WATER PUMP

9

6

4

1

7

2

3

5

WATERLINE

8

(1) Electricity only from first plants. Later plants, according to their design, will have a mix of products.(2) Fresh water plant only; Much higher quantity.

Product(1) Output/yr Unit Price Output/yr Unit Price Revenue/yr(1)Metric Units Metric

Electricity 788,400,000 kwhrs $0.12 788,400,000 kwhrs $0.12 $94,608,000.

Oxygen 219,000 tons $94.00 198,672 M.Tons $104. $20,586,000.

Nitrogen 139,000 tons $82.00 126,098 M.Tons $90. $11,398,000.

Ammonia 106,000 tons $170.00 96,161 M.Tons $187. $18,020,000.

Hydrogen 17,000 tons $1,900.00 15,422 M.Tons $2,094. $32,300,000.

Methanol 26,700,000 gals $1.90 101,059,500 liters $0.50 $50,730,000.

Fresh water(2) 21,000,000,000 gals $0.003 79,485,000,000 liters $0.0008 $63,000,000.

Fish 32,000,000 lbs. $1.00 14,514,880 kgs $2.20 $32,000,000.

6 7

Although Ocean Thermal Energy Conversion hasa long and interesting history, it was J. HilbertAnderson and his son, James H. Anderson Jr.,founders of Sea Solar Power, Inc., who first tookit seriously and showed how to design and buildsuch plants economically. Prior to beginning anexhaustive study of OTEC in 1962, Hilbert

• 1880’s -- OTEC first proposed by Frenchphysicist Jacques d’Arsonval.

• 1920’s -- Georges Claude, one ofd’Arsonval’s students, builds a test plantusing the warm water effluent from apower plant in France.

• 1930’s-- Claude builds a 60Kw open cycleland-based plant at the Bay of Mantanzas, Cuba. Claude later attempts afloating plant.

• 1940’s--French energy company starts con-struction of land-based plant at Abidjan, Ivory Coast. Abandons project when hydro-electric dam goes into service nearby.

• 1960’s -- Andersons’ first papers: MITBachelor’s Thesis, 1963, Power Magazine,1964, and American Society of MechanicalEngineers technical paper and Mechanical Engineering Magazine in 1965.

• 1972 -- Hilbert Anderson addresses NationalScience Foundation’s Solar Energy Panel.

• 1973-- US Energy Research and Develop-ment Administration (ERDA) launchesOTEC program, eventually spending over$200 million on conceptual, environmental,and feasibility studies.

• Early 1980’s -- ERDA confirms that OTECis technologically and commercially viable.

ERDA’s successor, the Department ofEnergy, invites private industry to take over.

• Mid-1980’s --Mini-OTEC floating plant using a refrigerant working fluid operates inHawaii.

• Late 1980’s --Tokyo Electric builds a smallland-based demonstration plant using a refrig-erant working fluid on Nauru (www.otecnews.org/articles/nauru/html).

• 1990’s --- By the early 1990’s it becomes clearfrom the experience of pilot plants and heatexchanger tests in ocean conditions that OTEC heat exchangers can be made from inexpensive aluminum alloys and don’trequire expensive cupronickel or titanium. It also becomes clear that bio-fouling of the heat exchanger surfaces can be controlledwith small amounts of chlorination (//library.greenocean.org/oteclibrary/otecpapers/otec%20 history.pdf).

• 2000’s ---India’s Institute for Energy Studieshas been working on construction of a small floating plant (www.niot.res.in).

• Price of oil bottoms at $10/barrel in1998 andthen, in 2006 and 2007, surges to between$50 and $70/b. For tropical island nations andothers who generate electricity from oil, OTEC becomes especially attractive.

Anderson had extensive experience designingrefrigeration and heat power cycles. In 1965, fatherand son published “Large Scale Sea ThermalPower,” the first of several papers explaining howestablished practices in refrigeration and oceanengineering could be innovatively applied.

Some OTEC Milestones:

There have been numerous other investigators and proponents of OTEC besides the Andersons.A very brief listing would name the following: Dr. Clarence Zener, Westinghouse; Dr. Abraham

Lavi, Carnegie Mellon; Dr. William Heronemus, Un. Of Massachusetts; Dr. William Avery,Johns Hopkins, Applied Physics Lab; Dr. Robert Cohen, DOE; Dr. John Craven, Un. Of Hawaii;

Dr. Hans Krock, Un. Of Hawaii and OCEES, www.ocees.com

Sea Solar Power, Inc., through private funding,has continued to develop and test the key ele-ments of a Rankine cycle OTEC plant. Theseare the vapor turbines, water pumps, heatexchangers, cold water pipe, vacuum pump, andintegrated floating structure. Excellent progresshas been made.

Learning from the experiences of Claude, theAndersons designed their plant to be floating sothat the cold water pipe would extend straightdown to the coldest water. To minimize thestresses on the cold water pipe and connection,the Anderson-designed plant is mostly sub-merged below the action of the wind and waves.In addition, the cold water pipe is supported bythe plant with a specially designed flexible con-nection.

To further the technology of the cold water pipe,Sea Solar Power has developed a revolutionarystockade construction, which allows individualpieces to form a large circular pipe. Made ofstrong, light, reinforced fiberglass composite, itwould be assembled on the floating platform.This is similar to drill pipe installations on off-shore oil-drilling platforms with one sectionattached to the previous sections as the wholepipe is lowered to depth. SSP has been testingpipe sections for strength and connection relia-bility.

Heat exchangers, designed by Sea Solar Power,are a critical item of our technology. SSP hasbeen extensively testing both plate/fin and shell& tube exchangers since the 1970’s. Theexchanger efficiencies that have been achievedallow the heat exchangers and the overall plantto be of reasonable size and cost.

A new vacuum pump for removing air from thewarm water has been designed, built and tested.A specially-designed vapor turbine has beenmanufactured and is ready to be assembled andtested at our Jacobus, PA facility.

The state of Sea Solar Power’s proprietary tech-nology is such that a prototype floating plant canbe built today at a reasonable cost, to demon-strate the technology and the opportunities.Using real quotations for all the components, asestimated by respectable manufacturers, SSP hasbeen able to estimate the cost of floating plants.Seven independent engineering studies by pri-vate firms, colleges, and associations corroborateSSP’s design.

A small but commercial-sized floating SSP plant---20-40MW---could be built within about 36months. This would establish a working proto-type and a test bed on which to evaluate andimprove components. At the same time, electric-ity(and other products) could be generated to payoff the plant.

Sea Solar Power, Inc.A Look at

Sea Solar Power, Inc.Pioneer and Worldwide Leader in Ocean Thermal

Energy Conversion (OTEC)

SSP 4MW vapor turbine inlet casting

SSP heat exchangertest facility

The Sea Solar Power Concept Began In 1881The Sea Solar Power Concept Began In 1881

OTEC is the most economic and most abundantalternative source of electricity, fresh water, andhydrogen/methanol presently known to man. It iscontinuous. It has the potential to end the world’sdependence on fossil fuels. It will permit smalland large nations to meet the needs of everexpanding populations. No land is required.

Electricity could be supplied to as many as fivebillion people with floating plants sited offshoreand connected by ocean-floor transmissioncables. Plants farther out to sea could createhydrogen and, from that, methanol, which can beused as a substitute for gasoline.

Let’s Get Started!An obvious next step is to build a prototype orproof-of-concept floating plant. Puerto Rico is anattractive possible site. It could eventually usemore than forty 100-megawatt plants to replaceits imported fuels. Electrical rates would dropwhile local jobs would increase. The fishingindustry would benefit. Manufacturing wouldthrive because of lower, stable energy costs.Hawaii and Florida are two other great first sitesfor the U.S.A. Sea Solar Power, Inc. is Ready!We have the proprietary hardware and expertiseto build these plants better, faster, and at lessexpense than any other entity. Once this proto-type proves the reliability of the system, the mar-ket is virtually limitless.

Why Not Now?In the beginning we asked, “What are we waitingfor?” We need far-sighted government supportalong with the help of private industry. Somereasons why OTEC has been neglected include:

• Energy independence not considered an urgent national policy goal.

• Global warming not taken seriously.• An acceptable and non-threatening price of

oil until 2005.• Powerful lobbyists who may see OTEC as a

threat to interests they represent.• Lack of knowledge by policy makers, members

of congress, and investors of OTEC’s viability.• Considered too good to be true. This idea

implies that OTEC is easy. Although OTEC is the obvious renewable choice, there are challenges.

• It’s a new power source and a new technology---a whole new direction in power generation---and therefore suspect.

Sea Solar Power A Viable, Low Cost, All-Green Answer to the World’s Demand for

Electricity, Fresh Water and Liquid Fuel Production

Sea Solar Power A Viable, Low Cost, All-Green Answer to the World’s Demand for

Electricity, Fresh Water and Liquid Fuel Production

Compared to the most dramatic American engineering achievements of the last century,

such as putting a man on the moon or building the atomic bomb, OTEC is clearly well within ourcapability and ingenuity. We believe its implemen-tation will be comparable to the dawn of “big oil”,our fuel of choice for the last 100 years. As OTECtechnology further matures, costs will continue to

drop. Fossil fuel costs, however, will continue rising, perhaps exponentially.

Sea Solar Power, Inc. is ready and willing. We need your support to help bring the many benefits

of our technology to a waiting world.

Sea Solar Power, Inc.headquarters

250 N. Main St., Jacobus, PA, 17407-1011 www.seasolarpower.com717-428-3246 • Fax 717-428-2865

SEA SOLAR POWER,Inc.

8Printed in the U.S.A. SSP-2 4-07