It has been announced that the U.S. Naval Facilities Engineering Command has given Lockheed Martin a $4.4 million contract to press forward with the design for an ocean thermal energy conversion (OTEC) pilot plant off the coast of Hawaii.

Ocean thermal energy conversion is a process by which the temperature difference between shallow and deeper waters is used to power a heat engine. 

Chris Myers, Lockheed Martin vice president for energy and government programs, has been quoted as saying, "OTEC is an ideal energy generation technology for shoreline communities and military bases in tropical areas, some of which are largely dependent on imported fossil fuels for power and transportation. We are applying our decades of experience designing and deploying maritime systems for defense markets to ocean power, helping to produce clean energy."

The Natural Energy Laboratory of Hawaii Authority was established at Keahole Point on the Kona coast of Hawaii in 1974, when the United States decided to conduct research into ocean thermal energy conversion technology.

Since then, the laboratory has led the world in OTEC research and technology.

Lockheed Martin will design and create vital system components for a pilot plant, which will leverage the temperature difference between warmer water at the ocean's surface and colder water. 

The contract is an addition to a Naval Facilities Engineering Command contract for $8.1 million issued Lockheed Martin in 2009.

Significantly, OTEC is not an intermittent energy source and so can be used as a stable base-load power generator, operating around the clock and not affected by weather conditions.