marine and hydrokinetic distributed and alternate ... forum...• national conference on seaweed...

1U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Marine and Hydrokinetic Distributed and Alternate Applications

Forum Topic Notes


Distributed and Alternate Applications Forum Agenda

TUESDAYDecember 5, 2017

1. Micro and Macro Algae MarketsSea-based algae farms, returning unused nutrients to the sea, and applications for animal feed, biodiesel, and hydrocarbons

2. Aquaculture MarketsPotential for renewable energy usage in offshore/near-shore aquaculture, offshore/ near shore farms, and the state of the U.S. seafood economy as driven by aquaculture

WEDNESDAYDecember 6, 2017

1. Ocean Observation/NavigationInspection of subsea infrastructure, power below and above water sensors

2. Resident AUV / UUV RechargingCharging and communications uses and development

THURSDAYDecember 7, 2017

1. Desalinization of SeawaterStrategic use within small and rural communities, along with applications for larger municipalities

2. Seawater Mineral ExtractionUtilizing the hydrocarbons from carbon capture processes and addressing trade gaps within the rare-earth element market


Please reach out to Bill McShane ([email protected]) if you’d like to:• Refine information already captured

• Share additional thoughts and insights

• Provide an insightful reference on a market opportunity.

mailto:[email protected]


Table of Contents

Marine Algae Page 5Marine Aquaculture Page 13Ocean Observation / Navigation Aids Page 21Underwater Recharge Page 29Desalination Page 36Seawater Mining 4


Marine AlgaeMarine and Hydrokinetics Distributed and Alternate Applications BackgrounderNovember 2017


Marine Algae: OverviewMarket OverviewMacro algae (seaweeds) and some micro algae represent a a $15 billion market spanning multiple sectors. Marine algae grown at commercial scale can provide biofuels, animal feed, and other coproducts. The production of macro and micro algae requires power for harvesting and processing at sea, transporting feedstock or intermediate products to shore, as well as powering safety equipment, and persistent monitoring of water parameters (temperature, salinity) and water quality. The industry is still in its infancy and efforts are focused on R&D. Current projected costs for marine algae are several times terrestrial biomass, but improvements in yields, scale, and operations could see algae become cost competitive with terrestrial crops.

Envisioned MHK Value PropositionMHK systems can be designed into the growing and harvesting system to provide off-grid power needs. By replacing fossil fuels with MHK renewable energy, the industry will reduce harm to air and water quality, reduce supply risks, and potentially reduce farm operation costs. MHK’s durability and power output will be an advantage over other renewables. Biofuels grown at sea will bypass future constraints on terrestrial biomass, such as competition for land and freshwater availability, nitrogen fertilization, and logistics. U.S. waters include a large (almost 10 million km2) Exclusive Economic Zone, a significant portion of which could be used for growing macro or micro algae.

Areas of Opportunity: Overlap of Resource and Market • Most U.S. offshore waters have opportunities for macro

algae growth for biofuels, which presents significant overlap with many MHK resource areas. Offshore farms will be most suited to ocean current or wave energy conversion.

• Lines for macro algae growth and harvest could be anchored or free floating.

• Raw material may be transported to shore, favoring coastal growing waters, or may be processed at sea in all offshore areas.

• Growth of macro algae for food and fiber requires adequate light; growing operations in high latitudes with nutrient-rich waters may have short but intense growing seasons.

MHK Application


Marine Algae: MarketMarket Segments and RequirementsBIOFUELS

• Current worldwide production of biofuels = 1,324 million tons of oil equivalent (Mtoe)6 each year. To provide context for scale, U.S. goals for natural gas production are 691 Mtoe8.

• Need long-chain hydrocarbons not available with land-based biofuels. Supply needs to be of consistently high quality and regularity to avoid price volatility and attract consumers.

CHEMICALS AND BIOPLASTICS

• Micro algae used for production of antibiotics and pharmacologically active compounds like docosahexanoic acid9, or it can serve as a thickening or binding agent.

• The pigments produced by algae are used as alternatives to chemical dyes and coloring agents9. Long-chain polymers found in algae lipids are used for making bioplastics.

FOOD AND FEED

• Demand may be more cyclical and subject to consumer trends. • Japan is the principal consumer of edible algae for humans9.• Micro algae can serve as a food source for many aquaculture species in

addition to cattle and hog feed, creating a diverse market.

Market Size• In 2004, the combined micro and macro algae global market

was estimated at $10–12 billion9. Assuming a modest compound growth rate of 3% would place the current market at $15 billion, and a market in 2030 of $22 billion.

• The biofuels market is modest in size, but is growing. The current global algae oil market is estimated at $1.4 billion and expected to grow to $2 billion by 202511.

• The global algae protein market was valued at $600 million in 2016 and was expected to have a 6.2% compound annual growth out to 2022, when it will reach $1.1 billion10.

Path to Market• Requires close coordination with MHK developers to determine

match of power resources, market needs, growing seasons, and consumer demand cycles, which will drive energy needs.

• Increased demand for cleaner fuels, including air-quality mandates, will spur biofuel markets.

• High-value coproducts such as complex polysaccharides like algin, laminarian, mannitol, fucoidan, and agar can be extracted from macro algae, leaving the residue for animal feed. These coproducts may allow for markets to develop before biofuels. MHK developers should engage with startups to integrate systems early in the design process.

Market Synergies Critical Success Factors• Need to collaborate with industry as offshore algae farms are

being designed to incorporate different MHK technologies from the beginning

• Proven success of MHK devices that are optimized for non-energetic areas (slow currents, reduced sea states)

• Marine algae farms will need to improve biomass yields, reduce costs with scale, reduce labor costs via automation, and reduce logistical costs.

Biofuels

AquacultureNavigation Markers

Ocean Observation

AUV/UUV Recharge


Marine Algae: Stakeholders

MHK vs. Competition• As there are no existing macro algae biofuel farms, there is no

competitive power source to displace.

• MHK has the advantage over solar and offshore wind because biofuel installations require low-profile infrastructure (to avoid sunlight shading).

• Biofuel operations may be free-floating; MHK could provide unique advantage as a power source.

• As this market is undeveloped, MHK could have a first-mover advantage.

Industry Players• Aquaculture companies

• Macro and micro algae growing operations• (See Aquaculture report)

• Transportation industry: • Commercial air carriers (Southwest, Alaska, South African

Airlines)• Airplane turbine manufacturers (Boeing, Airbus, Rolls-Royce,

General Electric)• Ground and sea transportation (Maersk, Wartsila, Cummings,

CAT)• Biofuel refineries• Chemical manufacturers (DuPont, Ashland, Tata Chemicals)• Food and feed retailers (Whole Foods, Cargill, BioProcessAlgae,

TerraVia, Earthrise Nutritionals)• Pharmaceuticals (Algae to Omega, Florida Algae, Amgen)

Potential Mission-Driven Partners• DOE ARPA-E

• NOAA Fisheries

• U.S. Coast Guard

• DoD – DARPA, USAF, U.S. Navy, U.S. Army

• Sustainable Bioenergy Research Consortium (Boeing)

• Energy companies

• Shell

• BP

• Exxon-Mobil

• Commercial Airlines

Envisioned Competitive Advantage

Low High

• Cargill

• Engine manufacturers

• Chemical manufacturers


Marine Algae for Biofuels: Examples

Some algaes are good sources of protein, lipids, and carbs.(Courtesy of WATTAgNet.com)

Kelp grown on longline. (Courtesy of Creative Commons) Red and brown algae, which are good candidates for biofuels. (Courtesy of Creative Commons)

Line cultivation of macro algae. (Courtesy of Creative Commons)


Marine Algae for Biofuels: Topic Questions

Market• What would a competing energy

system look like (wind, solar)?

• How much water area is required for a pilot project or full-scale farm? What is the yield ratio of area to product (i.e., 4 sq. km yields 1,000 gal of biofuel)?

• Which refineries, customers, interest groups/associations, universities, and laboratories carrying out research are likely to be the prominent players in this emerging market?

• Where are existing or planned refineries and transportation hubs in relation to coastal areas? How do these compare with market and resource overlap?

Technical • Will emerging offshore algal biofuel

farms be free-floating, bottom-fixed, or both?

• What power requirements will each farm have (including peak loads, seasonal, daily, and reliability needs)?

• What is the minimum power requirement for constant growth and harvesting operations?

• Will persistent monitoring of water quality and other variables be required at each farm? If so, how will these be carried out?

• What infrastructure will be available for addition of MHK devices and battery backup?

• Can biofuels be refined at sea?

Miscellaneous• What latitude bands present the

best conditions for growth of particular species of algae? Do these areas overlap with MHK resources?

• What do we need to know about nutrient limitations in different regions under market-level growing conditions?

• Where will optimum growing areas intersect with good wave/tidal/ current resources?


Marine Algae for Biofuels: References, Conferences, and Associations

References1. Barlow, J., R.C. Sims, and J.C. Quinn. 2016. Techno-economic and life-cycle assessment of an attached growth

algal biorefinery. Bioresource Technology, 220: 360-368.

2. Brown, T. 2016. Engineering economics and economic design for process engineers. CRC press.

3. Hoffman, J., R.C. Pate, T. Drennen, and J.C. Quinn. 2017. Techno-economic assessment of open micro algae production systems. Algal Research, 23: 51-57.

4. Roesijadi, G., A. Copping, M. Huesemann, J. Forster, J. Benemann. 2008. Techno-Economic Feasibility Analysis of Offshore Seaweed Farming for Bioenergy and Biobased Products

5. Emerging Markets Online. 2011. Algae 2020: Global Biofuels, Drop In Fuels, Biochems Markets and Forecasts.

6. IEA 2017. Key world energy statistics. https://www.iea.org/publications/freepublications/publication/key-world-energy-statistics.html

7. NREL. 2017. 2015 Bioenergy Market Report https://www.nrel.gov/docs/fy17osti/66995.pdf

8. World Energy Council https://www.worldenergy.org/data/resources/country/united-states-of-america/gas/

9. Oilgae. November 2017. http://www.oilgae.com/non_fuel_products/non_fuel_products_from_algae.html

10. BusinessWire. November 2017. http://www.businesswire.com/news/home/20171107005901/en/Global-Algae-Protein-Market---Forecast-Grow

11. Research and Markets - Global Algae Oil Market 2014-2017 & 2025: Key Players are TerraVia Holdings, Diversified Energy, Algix and Cellana. April 2017. https://www.prnewswire.com/news-releases/research-and-markets---global-algae-oil-market-2014-2017--2025-key-players-are-terravia-holdings-diversified-energy-algix-and-cellana-300446184.html

https://www.iea.org/publications/freepublications/publication/key-world-energy-statistics.html

https://www.nrel.gov/docs/fy17osti/66995.pdf

https://www.worldenergy.org/data/resources/country/united-states-of-america/gas/

http://www.oilgae.com/non_fuel_products/non_fuel_products_from_algae.html

http://www.businesswire.com/news/home/20171107005901/en/Global-Algae-Protein-Market---Forecast-Grow

https://www.prnewswire.com/news-releases/research-and-markets---global-algae-oil-market-2014-2017--2025-key-players-are-terravia-holdings-diversified-energy-algix-and-cellana-300446184.html


Marine Algae for Biofuels: References, Conferences, and Associations

For more information, visit: energy.gov/eere/water/marine-and-hydrokinetic-energy-research-development

November 2017

Conferences• The 8th International Conference on Algal Biomass, Biofuels and Bioproducts, Seattle, June 2018,

https://www.elsevier.com/events/conferences/international-conference-on-algal-biomass-biofuels-and-bioproducts

• Biofuels and Bioenergy, Zurich, Sept 2018. https://biofuels-bioenergy.conferenceseries.com/europe/

• National Conference on Seaweed Cultivation, Chennai, India, Sept 2017 https://news.webindia123.com/news/articles/India/20170913/3185374.html

• Algae Biomass, Salt Lake City, Oct 2017 https://algaebiomass.org/events/9965/innovation-aqua-feed/

Associations• European Algae Biomass Association http://www.eaba-association.org/en/about-us/

• Advanced Biofuels USA https://advancedbiofuelsusa.info/

• National Algae Association http://www.nationalalgaeassociation.com/

http://www.energy.gov/eere/water/marine-and-hydrokinetic-energy-research-development

https://www.elsevier.com/events/conferences/international-conference-on-algal-biomass-biofuels-and-bioproducts

https://biofuels-bioenergy.conferenceseries.com/europe/

https://news.webindia123.com/news/articles/India/20170913/3185374.html

https://algaebiomass.org/events/9965/innovation-aqua-feed/

http://www.eaba-association.org/en/about-us/

https://advancedbiofuelsusa.info/

http://www.nationalalgaeassociation.com/


Marine AquacultureMarine and Hydrokinetics Distributed and Alternate Applications BackgrounderNovember 2017


Marine Aquaculture: OverviewMarket OverviewAn approximate $14 billion-per-year seafood trade gap exists between the United States and its trading partners4 that cannot be filled solely by traditional fisheries. More than 90% of U.S. seafood is imported, presenting a unique opportunity for offshore and near-shore aquaculture.

Aquaculture is the cultivation of finfish, shellfish, and crustaceans on land or at sea, primarily for protein. It is a nascent U.S. industry; however, offshore farms are developing worldwide to meet an expected global market projected to be more than $55 billion by 20207. Small aquaponics operations are under development near shore on barges, but many are looking to expand. Presently, aquaculture operational power needs include navigation lights, compressed air production, nutrient and waste disbursement, fish feeders, and support for crew (lights, heat, etc.), all of which are met with diesel generators and solar panels, consuming between 4 and 715 MWh each year depending on the farm size14.

Envisioned MHK Value PropositionAquaculture can produce high-quality protein with no need for land, fresh water, or fertilizer. Marine aquaculture requires energy to power monitoring equipment, navigation lighting, fish feeders, and product refrigeration. This power has historically been provided by diesel generation and only occasionally by renewables. By replacing fossil-fuel power generation with MHK energy, the industry will reduce harm to air and water quality. Marine renewables are believed to be more suited to this task than other renewables due to excellent colocation characteristics, low visual profile, and less intermittency. U.S. waters include a large (almost 10 million km2) Exclusive Economic Zone (EEZ), a significant portion of which could be used for aquaculture development.

Areas of Opportunity: Overlap of Resource and Market • Opportunities for aquaculture occur on most coastlines and

offshore waters. Aquaculture containments may be offshore or onshore.

• Offshore netpens and other aquaculture enclosures are sited in calmest waters that provide adequate flow for nutrient supply and waste removal, which may not coincide with best wave resources.

• Good tidal resources at dozens of locations in the United States may coincide with netpen operations in selected locations.

• Growth of macro algae for food and fiber requires adequate light, so high-latitude growing operations may have short but intense growing seasons.

MHK Application


Marine Aquaculture: Market

Market Segments and Requirements• Offshore: finfish, rafted shellfish (those grown suspended off the

sea floor), algaeo Power requirements across different-sized operations are

estimated to range from ~4,000-715,000 kWh/yearo Requires electricity, mechanical energy, or compressed air for

monitoring water quality, fish feeding, aeration, mechanical harvest at sea, and refrigeration

o Intermittency of power is acceptable if smoothed by storageo Must be backed up by storage or alternate power source and

accessible for periodic maintenance.• Near shore and onshore: shellfish, algae

o Same requirements; suspected that less energy storage needed due to easier access to grid power.

Market Size• U.S. market currently estimated at less than $1M domestically

for finfish and bivalves; expected to grow to $50M in 20 years; international market for all aquaculture species (including both fresh and saltwater species of plants, fish, and mollusks) valued at $159 billion4,7. By 2025, some model estimates show total aquaculture production to increase by roughly 40%, from 73 million to 101 million tonnes7.

• China has the largest production of aquatic animals, owning nearly 60% of global fish production in 2014.

• Market driven by seafood shortages from depleted wild fish stocks. Uncontrolled fishing of open water species will increase dependence on aquaculture market.

Path to Market• Acceptance of aquaculture facilities may gain better social

acceptance with the addition of renewable power.

• Likely that further stress and depletion of wild fish stocks will increase adoption of farmed fish

• Testing of MHK devices needed around netpens and other aquaculture facilities to hone compatibility and promote acceptance.

Market Synergies

Aquaculture

Marine Algae

Navigation Markers

Ocean observation

Critical Success Factors• Initially needs government investment, with NOAA Aquaculture

interested in promoting offshore installations. Private capital will be needed to supplement government funding.

• Market dependent on increased growth of U.S. offshore aquaculture.

• Technical advancements on marine fish husbandry needed to increase yields for a prosperous industry.


Marine Aquaculture: Stakeholders

MHK vs. Competition• Currently, power is supplied by diesel, batteries,

kerosene, and some solar. Offshore wind may be possible for large, fixed installations. MHK has advantage for co-located power generation and a low visual profile (as compared to offshore wind), which may be easier to integrate with aquaculture operations.

• Aquaculture operations could be satisfied with intermittent power, if coupled with continuous recharge of backup battery storage.

• Power needs could be met with solar where it is available and feasible; however, there is limited real estate for panels and a low profile is preferred.

• MHK is believed to be a better candidate at night, in high latitudes, and during winter.

Industry Players• Several international MHK companies, particularly in Scandinavia, Scotland, Ireland:

o Wave Dragono Albaterno Waves4Power

• U.S. MHK company examining potential for MHK power supply:o Atmocean

• Offshore U.S. companies, including: o Catalina Sea Rancho Manna Fish Farmso Innovasea.

Potential Mission-Driven Partners• NOAA Aquaculture

• U.S. Department of Commerce

• Alaska Department of Fish and Game

• California Department of Fish and Wildlife

• Oregon Department of Agriculture

• Hawaii Division of Aquatic Resources, Animal Industry Division


Low High

Offshore

Nearshore and Onshore

Low High


Marine Aquaculture: Examples

Open ocean fish farming. (Courtesy of NOAA Fisheries) Shellfish farming. (Courtesy of Aquarium of the Pacific)

Fish reared in netpen. (Courtesy of Creative Commons) Netpens for finfish rearing. (Courtesy of Creative Commons)


Marine Aquaculture: Topic Questions

Market• What is the U.S. market for open-

ocean aquaculture likely to be in 10, 20, 30 years?

• Are there any fish stocks that are most likely to collapse in the near term and that will require a farmed alternative?

• What is the likelihood of shellfish aquaculture moving to open water in the United States?

• Will there be U.S. tax incentives to assist with moving aquaculture offshore?

• How would permitting/regulatory changes and marine spatial planning effectively unleash this U.S. market?

Technical • What species are likely to be grown

offshore in the future?

• What types of enclosures are likely to become common in the offshore aquaculture farm of the future?

• What are the power requirements for fish feeders? Are there other specific power needs? When are they needed?

• What monitoring will be required around net pens to ensure fish health? What are the power requirements of this equipment?

• What is the value of compressed air to aquaculture farms, as compared to electricity? Which is of greater value?

• What are the energy characteristics of the sites the aquaculture developers typically seek out? Do these align with MHK resources?

• Could a wave energy converter be integrated directly with a fish pen? Would this have any benefits?

Miscellaneous• What technical breakthroughs are

needed to effectively grow marine fish at large scale offshore?

• Are there likely to be long-term, close-proximity environmental or physical effects of MHK devices on fish or other marine life?

• How will public perception affect aquaculture powered by MHK? What strategies are needed to educate the public and encourage stakeholder participation?


Marine Aquaculture: References, Conferences, and Associations

ReferencesOffshore aquaculture:

1. http://www.sarf.org.uk/cms-assets/documents/152961-230407.sarf093.pdf

2. http://www.hie.co.uk/about-hie/news-and-media/archive/wave-energy-first-for-scottish-aquaculture.html - Wave energy first for Scottish aquaculture

3. http://www.aquacultureinitiative.eu/Renewable%20Energy%20Report.pdf - The Potential for Renewable Energy Usage in Aquaculture

4. http://www.nmfs.noaa.gov/aquaculture/aquaculture_in_us.html

5. http://www.fao.org/3/a-i5555e.pdf - The State of World Fisheries and Aquaculture 2016

6. https://www.kcet.org/food-living/growing-mussels-and-giant-kelp-in-san-pedro-at-the-first-offshore-shellfish-ranch-in - Growing Mussels and Giant Kelp in San Pedro at the First Offshore Shellfish Ranch in Federal Waters (Feb. 24, 2017)

7. FAO (2016) The State of World Fisheries and Aquaculture. http://www.fao.org/3/a-i5555e.pdf

Power requirements (lighting, acoustic deterrents, etc.):

8. http://www.marine.sabik.com/waterways-and-ports/sc-110

9. http://www.marine.sabik.com/waterways-and-ports/sbfl-160

10. http://www.sensorsystems.co.nz/store/monitoring-control/ais-sib-t4/

11. https://www.aceaquatec.com/us3-overview

12. http://airmartechnology.com/Uploads/NavSurv/NS_Seal%20Deterrent.pdf

13. http://www.marine.sabik.com/waterways-and-ports/m-650h

14. European Economic Aquaculture Initiative http://www.aquacultureinitiative.eu/Renewable%20Energy%20Report.pdf)

http://www.sarf.org.uk/cms-assets/documents/152961-230407.sarf093.pdf

http://www.hie.co.uk/about-hie/news-and-media/archive/wave-energy-first-for-scottish-aquaculture.html

http://www.aquacultureinitiative.eu/Renewable%20Energy%20Report.pdf

http://www.nmfs.noaa.gov/aquaculture/aquaculture_in_us.html

http://www.fao.org/3/a-i5555e.pdf

https://www.kcet.org/food-living/growing-mussels-and-giant-kelp-in-san-pedro-at-the-first-offshore-shellfish-ranch-in

http://www.fao.org/3/a-i5555e.pdf

http://www.marine.sabik.com/waterways-and-ports/sc-110

http://www.marine.sabik.com/waterways-and-ports/sbfl-160

http://www.sensorsystems.co.nz/store/monitoring-control/ais-sib-t4/

https://www.aceaquatec.com/us3-overview

http://airmartechnology.com/Uploads/NavSurv/NS_Seal%20Deterrent.pdf

http://www.marine.sabik.com/waterways-and-ports/m-650h

http://www.aquacultureinitiative.eu/Renewable%20Energy%20Report.pdf)


Marine Aquaculture: References, Conferences, and Associations

Associations• NOAA Aquaculture. http://www.nmfs.noaa.gov/aquaculture/

• World Aquaculture Society. https://www.was.org/main/default.asp

• American Fisheries Society. http://fisheries.org/aboutus/


November 2017

Conferences• 8th International Conference on Fisheries and Aquaculture, Toronto, California, October 2017.

https://fisheries.conferenceseries.com/

• International Conference on Aquaculture and Marine Biology. Miami, Florida, April 2018. http://aquaculture.alliedacademies.com/

• Aqua2018. Montpellier, France, August 2018. https://www.was.org/meetings/default.aspx?code=Aqua18

http://www.nmfs.noaa.gov/aquaculture/

https://www.was.org/main/default.asp

http://fisheries.org/aboutus/


https://fisheries.conferenceseries.com/

http://aquaculture.alliedacademies.com/

https://www.was.org/meetings/default.aspx?code=Aqua18


Ocean Observation/Navigation AidsMarine Energy Technologies Forum: Distributed and Alternate Applications BackgrounderNovember 2017


Ocean Observation/Navigation Aids: Overview

Market OverviewThe use of persistent maritime sensors is widespread and growing rapidly worldwide. Common monitoring systems include: ocean observation buoys to measure meteorological data; subsurface nodes for tsunami alerts; coastal protection for defense purposes; oil and gas monitoring and inspection; ocean research; and navigation buoys for maritime traffic. Some ocean observation sensors are cabled to shore, while others are powered with solar panels, wind turbines, and/or long-life batteries. The need to measure our oceans and have quick access to data is increasing. More accurate sensors and faster telemetry will have increased power needs.

As an alternative solution to solar, marine and hydrokinetic (MHK) devices with small storage could provide longer-term power by taking advantage of the very environment the sensors measure. Some ocean sensors and ocean data collection efforts are increasing in size and complexity, requiring additional power.

Envisioned MHK Value PropositionThe large increase in ocean observation systems, combined with the desire to have data in real time, adds new power demands. Since many observation and monitoring systems are in locations that are difficult to access, MHK could reduce costly site visits for maintenance while increasing system uptime. MHK could meet power needs for surface sensors, potentially integrated with some solar generation and battery storage, while undersea needs could be met entirely or partially by MHK and battery-energy storage systems. MHK provides unique advantages, including: colocation with sensors and shared infrastructure, markers, and subsea inspection vehicles; continuous power generation; and better stealth characteristics.

Areas of Opportunity: Overlap of Resource and Market • Opportunities for powering ocean observation sensors and

navigation aids occur throughout the coastal area and open ocean, when sufficient wave or tidal resource is present. Buoys in western boundary currents may offer better pairing potential with ocean current devices.

• U.S. wave resources are optimal off the coasts of Hawaii and Alaska, the mainland west coast, and the northeast, which overlaps well with tsunami nodes.

• Tidal resources are most common in inland waters, in shallow constrictions where navigation buoys are likely to be most prevalent.

MHK Application


Ocean Observation/Navigation Aids: MarketMarket Segments and RequirementsNAVIGATION AIDS• Generally includes buoys, floats, and lights on the surface. Poweris

needed for lights and other safety equipment; sensors in air and water; and to transmit data to shore. The range of power per installation is estimated at 10kW-600kW12.

OCEAN OBSERVATION• Ocean observation sites around the coastline, on the continental shelf,

along the margin of oceanic plates, along the equator and other convergence zones stand off from coasts for tsunami and storm early-warning systems.

• Most are subsurface, including oil and gas transmitters and acoustic listening posts, while others may be on the surface, including meteorological buoys.

• Military and security uses of ocean observations invest in systems for surveillance and tracking; for example, submarine tracking systems like the decommissioned sound surveillance system array13.

• Ocean observation systems are wide ranging and changing rapidly. Power needs could range from watts to 100s of kWs with different deployment times. Extended times are usually highly desirable.

Market Size• The global ocean sensor and navigation market is large, estimated to be

approximately $16 billion in 20118. The market is estimated to have a 10% compound annual growth rate out to 202014, which is believed to continue at a slightly reduced rate thereafter. The estimated market size is believed to be approximately $70B by 2030.

• The U.S. represents the largest exporter of ocean sensors and navigation equipment, valued at approximately $7 billion in 20178,14 and with similar near-term growth potential as the global market above. The portion of this that is addressable by MHK-paired technologies is significantly less, believed to be closer to $500 million to $1 billion, but this needs verification.

Path to Market• There is a promising point of entry for small wave energy converters and tidal

devices to displace diesel and solar on ocean observation systems. Navigation markers powered by wave energy have been in use for some time17.

• Observation and navigation buoys are almost all publicly owned, which means MHK developers should seek out strategic partnerships with public entities.

• Subsea inspection systems are mostly privately owned. It may be easier to engage with a private industry partner to demonstrate a pilot system

• Identify the best MHK technology for different sensor platforms. Point absorbers and oscillating water columns have been used with success in the past.

Market Synergies

Ocean Observations

Marine Aquaculture

Underwater Recharge

Marine Algae

Critical Success Factors• It is critical to coordinate with U.S. ocean observation systems nationally

and regionally as well as internationally as new systems are brought online to ensure MHK is considered and integrated as a power source.

• MHK devices need to demonstrate high efficiencies in environments with low energy.

• MHK devices will need to demonstrate long-term reliability and low maintenance requirements for full-term deployments of 10 years or more.


Ocean Observation/Navigation Aids: Stakeholders

MHK vs. Competition• MHK is highly competitive to supply power, especially at depth,

during the night, in high latitudes, and during the winter.

• Solar will have a competitive short-term advantage with photovoltaic panels for surface-ocean observation and navigation markers—except at high latitudes. Photovoltaic panels placed close to the sea surface may need more frequent maintenance and cleaning.

• Offshore wind is sometimes used for smaller data collection systems but generally too place-based and large for supplying larger ocean observations needs.

• Diesel engines are impractical in remote locations in the middle of the ocean without frequent refueling.

• Intermittent power requires storage backup for MHK and solar.

Industry Players• Subsea and observation (including defense) original equipment

manufacturers

• Oil and gas rig undersea inspection services

• Undersea pipeline and subsea cable inspection services

• Ocean observation sensor and equipment companies

• Navigation and buoy marker manufacturers

• Liquid Robotics

• MHK companies, including those actively engaged:

o Resen Wave

o Wave Piston

o EC-OG

o Ocean Power Technologies.


Low High

Potential Mission-Driven Partners• National Oceanic and Atmospheric Administration (NOAA)

Coastal Survey, National Data Buoy Center

• NOAA Pacific Marine Environmental Laboratory

• U.S. Integrated Ocean Observing System, regional Ocean Observing Systems, Global Ocean Observing System

• U.S. Coast Guard

• Major universities: University of Washington, Woods Hole, Scripps

• U.S. Department of Defense (U.S. Navy, Defense Advanced Research Projects Agency)

Surface Observation

Subsurface Observation

Low High


Ocean Observation/Navigation Aids: Examples

Navigation markers. [Sources: Polliechrome (bottom left); Creative Commons (others)]

(Courtesy of Ocean Power Technologies)Underwater gliders and profiling arrays. (Sources: ACSA, SeaExplorer, Creative Commons.)

Tsunami early warning system. (Source: NOAA)


Ocean Observation/Navigation Aids: Topic Questions

Market• What will the expansion of storm

and tsunami early-warning systems look like in the United States and around the world? Who are the major vendors?

• How are the power requirements changing for navigation aids, weather buoys, and early warning systems?

• How will the need for consistent power for undersea and surface ocean observations and navigation aids be balanced against costs?

• What price points would attract leading-edge developers? Early adopters? Mass markets?

Technical • What configurations will undersea

ocean observation nodes take?

• What opportunities exist for integrated MHK device/observation/navigation system design and optimization?

• What will be the detailed power requirement ranges of each type?

• How often are ocean observation systems visited for maintenance? Will this work with MHK maintenance intervals?

• Will these systems be operating at a significant depth?

• Do systems need to be stationary or for which markets can they be mobile and to what degree?

Miscellaneous• How can MHK interact with the

academic observation community?

• What specific power needs do oil and gas rigs, undersea pipeline, and cable inspection service companies need?

• What other types of ocean observation networks will be built in the future and how will they differ from existing networks?


Ocean Observation/Navigation Aids: References, Conferences, and Associations

ReferencesOcean Observations:

1. IOOS -http://oceanworks.com/admin/sitefile/1/files/Review%20of%20cabled%20observatory%20systems%20and%20their%20applications%20to%20deep%20water%20oil%20and%20gas.pdf

2. Venus array -http://oceanworks.com/admin/sitefile/1/files/Review%20of%20cabled%20observatory%20systems%20and%20their%20applications%20to%20deep%20water%20oil%20and%20gas.pdf

3. Neptune array -http://www.interactiveoceans.washington.edu/story/The_NEPTUNE_Concept_A_Regional_Cabled_Ocean_Observatory_in_the_Northeast_Pacific_Ocean

4. TAOS array -https://celebrating200years.noaa.gov/datasets/tropical/welcome.html

5. Tsunami early warning system, Pacific -http://ptwc.weather.gov/?region=1

6. AUVs Gain Momentum in Oil and Gas Operations -https://www.spe.org/en/print-article/?art=2031

7. Getting fishy -http://www.oedigital.com/regions/south-america/item/11989-getting-fishy

8. Market and Technology Trends in Underwater Sensors & Instrumentation -https://www.marinetechnologynews.com/news/market-technology-trends-underwater-473396

9. The potential of small-scale turbines and microbial fuel cells to support persistent oceanographic sensors -https://www.researchgate.net/profile/Jennifer_Ayers/publication/311758811_

10. OSTP. 2007. Ocean Observing Systems Market Study OSTP Science

11. European Earth Observation, future opportunities for business. http://www2.le.ac.uk/projects/g-step/info/documents/Valere MoutarlierEU.pdf

12. Brasseur, L., M. Tamburri, and A. Pluedemann. 2009. Sensor needs and readiness levels for ocean observing: an example from the ocean observatories initiative (OOI). NSF Ocean Observatory Workshop. 2009.

13. SOSUS array: https://www.pmel.noaa.gov/acoustics/sosus_gen.html

14. Global Markets and Technologies for Sensors – BCC Research: https://www.bccresearch.com/market-research/instrumentation-and-sensors/sensors-ias006f.html

16. Experimental Wave Powered Buoy Survives Winter in Monterrey Bay: https://www.mbari.org/experimental-wave-power-buoy-survives-winter-in-monterey-bay/

17. Location: Design of oscillating-water-column wave energy converters with an application to self-powered sensor buoyshttp://www.sciencedirect.com/science/article/pii/S0360544216308283

Navigation Markers:

16. Location of navigation markers in US waters. http://www.uscgboating.org/ATON/index.html

17. USCG Navigation Center: https://www.navcen.uscg.gov/

18. http://rsta.royalsocietypublishing.org/content/370/1959/235

http://oceanworks.com/admin/sitefile/1/files/Review%20of%20cabled%20observatory%20systems%20and%20their%20applications%20to%20deep%20water%20oil%20and%20gas.pdf

http://oceanworks.com/admin/sitefile/1/files/Review%20of%20cabled%20observatory%20systems%20and%20their%20applications%20to%20deep%20water%20oil%20and%20gas.pdf

http://www.interactiveoceans.washington.edu/story/The_NEPTUNE_Concept_A_Regional_Cabled_Ocean_Observatory_in_the_Northeast_Pacific_Ocean

https://celebrating200years.noaa.gov/datasets/tropical/welcome.html

http://ptwc.weather.gov/?region=1

https://www.spe.org/en/print-article/?art=2031

http://www.oedigital.com/regions/south-america/item/11989-getting-fishy

https://www.marinetechnologynews.com/news/market-technology-trends-underwater-473396

https://www.researchgate.net/profile/Jennifer_Ayers/publication/311758811_

http://www2.le.ac.uk/projects/g-step/info/documents/Valere%20MoutarlierEU.pdf

https://www.pmel.noaa.gov/acoustics/sosus_gen.html

https://www.bccresearch.com/market-research/instrumentation-and-sensors/sensors-ias006f.html

http://www.sciencedirect.com/science/article/pii/S0360544216308283

http://www.uscgboating.org/ATON/index.html

https://www.navcen.uscg.gov/

http://rsta.royalsocietypublishing.org/content/370/1959/235


Ocean Observation/Navigation Aids: References, Conferences, and Associations

Associations• Global Ocean Observing System (GOOS). https://www.ncdc.noaa.gov/gosic/global-ocean-observing-system-goos

• U.S. Integrated Ocean Observing System (IOOS): https://ioos.noaa.gov/

• U.S. Coast Guard Navigation Systems: https://www.navcen.uscg.gov/


November 2017

Conferences• Ocean Sciences, Portland, Oregon, Feb. 2018. http://osm.agu.org/2018/

• 5th International Conference on Oceanography and Marine Biology, Seoul, South Korea, Oct. 2017. http://www.oceanographyconference.com/

https://www.ncdc.noaa.gov/gosic/global-ocean-observing-system-goos

https://ioos.noaa.gov/

https://www.navcen.uscg.gov/


http://osm.agu.org/2018/

http://www.oceanographyconference.com/


Underwater RechargeMarine and Hydrokinetics Distributed and Alternate Applications BackgrounderNovember 2017


Underwater Recharge: Overview

Market OverviewAutonomous underwater vehicles (AUVs), also known as unmanned underwater vehicles (UUVs), are used for surveillance, persistent monitoring, and inspections of subsea infrastructure. Underwater charging and data offloading for UUVs would reduce reliance on expensive surface vessels and extend mission duration. MHK-powered recharge stations would harvest power continuously as the resource allows and, when paired with battery banks, allow reliable recharge on demand. Underwater recharge stations could also be used as intermediate data repositories, effectively increasing data storage capabilities. The U.S. UUV market is presently valued at $2.6B5 and is expected to double by 20226.

Envisioned MHK Value PropositionUUVs are duration limited, typically capable of lasting only a few days at most before having to surface to offload data via satellite or be recharged by a surface vessel. By surfacing, the UUV is spending time off mission and compromising its stealth. The support vessels that must recover and recharge these vehicles are very expensive, charging $30,000 or more per day.

If UUVs could charge and offload data underwater without surfacing, a sizable amount of the operating costs (estimated at hundreds of thousands of dollars) for a typical mission would be eliminated. Development of underwater recharging stations is underway, but they lack a long-term power source. MHK could provide an autonomous power source, reducing the need to recall vehicles to a surface vessel as frequently; saving time and resources; improving human safety; increasing mission duration, range, and stealth; and reducing carbon emissions. Wind and solar power are ill suited to this task, as they must be on or above the water surface, reducing stealth and survivability.

Areas of Opportunity: Overlap of Resource and Market • Opportunities for underwater recharge occur throughout the coastal

area and open ocean, when sufficient wave or tidal resource is present, and there is a need for AUV/UUV deployment; however, vehicles typically prefer environments with minimal ocean currents when possible.

• U.S. wave resources are optimal off the coasts of Hawaii and Alaska, the mainland west coast, and the northeast.

• Tidal resources are most common near inland waters and in shallow constrictions where it is less likely to need long-duration UUV monitoring.

• Ocean currents, especially fast-flowing western boundary currents, can approach speeds of three to four knots in some areas.

MHK Application


Underwater Recharge: Market

Market Segments and Requirements• Market segments for civilian (AUV) or military (UUV) or inspection

(hybrid ROVs) will have similar power requirements.

• Constant harvest of MHK power and battery backup will allow recharge on demand.

• Energy requirements depend on mission requirements and number of vehicles to service, estimated to be between 66kWh and 2.2MWh per recharge station.

• Ideally, power source should be able to operate over a wide depth-range, estimated to be between 50 and 1,000 meters.

• Rapid deployment and recovery would improve adoption.

Market Size• Global AUV market currently estimated to be more than $2.6 billion6.

• Short- and medium-term market outlook anticipates approximately 15% compound annual growth rate. Market expected to grow to $4 billion by 20306,7.

• The underwater recharge market is nonexistent, with an unknown valuation, but best guess places the current market at tens of millions of dollars and if a similar growth rate is assumed, hundreds of millions by 2030.

Path to Market• Projects will initially be small and bespoke for specific UUVs.

• Defense contractors and labs will likely be early adopters of recharge technology.

• Small-scale wave energy converters and underwater turbines can meet early development needs for underwater recharge.

• Time and cost to permit MHK for underwater recharge will have similar timeframe as other small off-grid MHK developments; security and military uses may allow expedited permitting.

Market Synergies

Underwater Recharge

Marine Aquaculture

Navigation Markers

Ocean Observation

Marine Algae

Critical Success Factors• Efficient underwater wireless charging stations need to be reliably

demonstrated.

• Efficient low-speed underwater turbines need to demonstrate high reliability and efficiency.

• MHK devices need to be reliably demonstrated in deep water with minimal deployment preparation.

• Standardization of recharge stations to accommodate a variety of UUVs will increase adoption and drive down costs.


Underwater Recharge: Stakeholders

MHK vs. Competition• AUVs/UUVs currently recalled to surface vessel for recharge, data

download/upload, and using power from ship generators (diesel source) require significant cost to service (in the range of $30K-$70K per day).

• Underwater recharge stations (currently in R&D mode) use battery banks, which would help to reduce the issue of intermittency for renewable power sources.

• Diesel generators must be surface-based and require frequent refueling. Poor stealth and maintenance characteristics.

• Other renewables (solar and wind) are less suitable replacements, as charging will be underwater, requiring extensive cabling from any surface power source, which would reduce stealth.

Industry Players• AUV/UUV vendors:

o Searobotics

o Boeing

o Teledyne

o Honeywell

o Bluefin Robotics

o Oceaneering

• Wireless charging:

o Wibotic

o AeroJet Rocketdyne

• Undersea constructors and operators of oil and gas rigs, pipelines and cables, MHK installations:

o U.S. Underwater Services

o GLOMAR Subsea


Low High

Potential Mission-Driven Partners• U.S. Navy, DARPA, ONR

• ARPA-E

• NSF

• NOAA- OAR

• WHOI, MIT, Scripps, University of Washington, and other academic partners.


Underwater Recharge: Notes

Underwater Remus Docking Station Source: Woods Hole Oceanographic Institute

Opportunities in all oceans, all depths Source: Bluefin Robotics

Marine Robotics Source: University of Sydney

AUV Source: MIT


Underwater Recharge: Topic Questions

Market• What proportion of the market will

be driven by strategic needs over price?

• What is the acceptable price point for a commercial underwater recharge power system?

• Are the available wave, tidal, and current resources aligned with customer needs?

• What are the most important characteristics of a recharge station (stealth, low maintenance, etc.)?

• Is there a market in power supply of subsea infrastructure of large oil and gas equipment?

Technical • What are the viable methods of

underwater charging (induction, docking, wireless)? What are the power requirements of each?

• How large a battery backup is needed to maintain constant charging on demand?

• At what depths will recharge stations be located?

• What is the method and frequency of data telemetry from the UUV?

• By how long will a recharge station extend a mission’s duration? Will this cause other limitations?

• What are the maximum water-current velocities that UUV operators will tolerate?

• Will recharging stations be standardized to service a variety of different UUVs, or will they be bespoke for each type of UUV?

Miscellaneous• Will recharging stations be

permanent, semi-permanent, or temporary installations?

• Can these recharge stations be integrated into any oil and gas subsea infrastructure?

• How much data does a UUV collect on a typical mission and how large a server would be required to store data from multiple UUVs over several missions?


Underwater Recharge: References, Conferences, and Associations

ReferencesAUVs:

1. http://www.whoi.edu/ooi_cgsn/coastal-gliders

2. http://alohamooring.apl.washington.edu/publications/documents/Moorings_Ocean_Observatories_Sampling_SSC06.pdf

3. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.654.5323&rep=rep1&type=pdf

4. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0ahUKEwjakYjen7HTAhWMVrwKHdnoDKUQFgg2MAQ&url=https%3A%2F%2Fmarine.rutgers.edu%2F~kerfoot%2Fpub%2Fslocum%2FRELEASE_6_32%2Fsrc%2Fdoco%2FMANUAL%2Fslocum_manual_rev6.doc&usg=AFQjCNFjBAJZhcsdqafx5Ww7p097ert5lw

5. https://globenewswire.com/news-release/2017/03/10/934263/0/en/Global-2-65-Billion-Unmanned-Underwater-Vehicles-Market-2017-2021.html

6. http://www.marketsandmarkets.com/PressReleases/unmanned-underwater-vehicles.asp

7. https://www.oilandgas360.com/global-autonomous-underwater-vehicle-auv-market-forecasted-to-grow-15-5-by-2021-research-and-markets/

Conferences• Ocean Sciences, Portland OR, Feb 2018.


Recharge Power Sources:

8. https://dspace.mit.edu/handle/1721.1/92102

9. https://www.researchgate.net/publication/222545048_Power_sources_for_autonomous_underwater_vehicles

ROVs:

10. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjAwsj_2a7TAhVmx1QKHe6fB9AQFgguMAE&url=http%3A


November 2017

Associations • Association for Unmanned Vehicles. http://www.auvsi.org/

http://www.whoi.edu/ooi_cgsn/coastal-gliders

http://alohamooring.apl.washington.edu/publications/documents/Moorings_Ocean_Observatories_Sampling_SSC06.pdf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.654.5323&rep=rep1&type=pdf

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0ahUKEwjakYjen7HTAhWMVrwKHdnoDKUQFgg2MAQ&url=https://marine.rutgers.edu/%7Ekerfoot/pub/slocum/RELEASE_6_32/src/doco/MANUAL/slocum_manual_rev6.doc&usg=AFQjCNFjBAJZhcsdqafx5Ww7p097ert5lw

https://globenewswire.com/news-release/2017/03/10/934263/0/en/Global-2-65-Billion-Unmanned-Underwater-Vehicles-Market-2017-2021.html

http://www.marketsandmarkets.com/PressReleases/unmanned-underwater-vehicles.asp

https://www.oilandgas360.com/global-autonomous-underwater-vehicle-auv-market-forecasted-to-grow-15-5-by-2021-research-and-markets/


https://dspace.mit.edu/handle/1721.1/92102

https://www.researchgate.net/publication/222545048_Power_sources_for_autonomous_underwater_vehicles

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjAwsj_2a7TAhVmx1QKHe6fB9AQFgguMAE&url=http:


http://www.auvsi.org/


DesalinationMarine and Hydrokinetics Distributed and Alternate Applications BackgrounderNovember 2017


Desalination: Overview

Market OverviewSeawater desalination is a small but growing part of the global water industry. In the United States, the existing seawater reverse osmosis (SWRO) market has a capacity of approximately 500,000 m3/day1, translating to approximately $45 -$65 million per year in electricity consumption. The desalination market is a small portion of total water consumption, both domestically and globally2, but a 20% increase in capacity is expected by 20201. By 2030, the annual global cumulative desalination capacity across all technologies is projected to double from 100 million to 200 million m3/day1. The largest customers of desalinated water are primarily driven by cost and freshwater availability.

MHK technologies can directly pressurize SWRO systems for island communities, disaster recovery, military, and large-scale municipal water supplies without the need for electricity. Near term, shallow-water wave energy will likely dominate as a power source (due to close proximity to shore), although ocean current resources may be utilized if offshore water storage and maintenance can be addressed. The relatively low cost of water storage compared to electricity storage (e.g., batteries) allows for greater flexibility in project size and siting.

Wave-powered system directly pressurizing seawater for reverse osmosis desalination and electricity. (NREL Image)

Envisioned MHK Value PropositionMHK-powered systems can supply potable water for isolated coastal communities with high electricity rates or limited to no grid accessibility. Ocean energy resources are geographically aligned with population centers and the SWRO resource, providing the opportunity to produce both water and electricity in areas with no grid connection (e.g., islands, military bases, disaster relief). As MHK costs are reduced, MHK can help provide low-cost, emission-free desalinated water to municipalities, which opens up a larger-scale market. Modeled estimates using existing technology predict that wave-powered reverse osmosis could be 2-3 times less expensive than PV-powered reverse osmosis 3.

Areas of Opportunity: Overlap of Resource and Market There are several potential wave-powered desalination deployment areas that have both significant clean water demand and an exploitable wave resource close to shore in shallow-water resources (< 30m depths):

• U.S. west coast, Alaska, Hawaii, U.S. Virgin Islands

• Some parts of the U.S. east coast, especially in North Carolina where many water aquifers are contaminated by seawater.

As floating technologies are developed and temporary storage solutions are refined, water-current technologies will provide additional opportunities. Regions near states like Florida are likely to benefit from the high-capacity factors associated with ocean current.

MHK Application


Desalination: MarketMarket Segments and RequirementsMUNICIPAL WATER SYSTEMS• Large-scale distribution systems – equivalent to 10-100+

MW arrays• Conservative customers who are driven by low cost and high

reliability • Customers who desire long-term (20+ year) operation (large

capital investments).

ISOLATED DISTRIBUTED SYSTEMS• Smaller systems – equivalent sub-MW-scale arrays• Costs typically compete with diesel and/or waste heat• Resource fluctuations will require storage to compete with

diesel, a commonly used dispatchable power source • May benefit from flexibility to produce water and electricity.

Market Size• Municipal Market - Approximately $30 billion per year potential in U.S. water sales

(assumes selling price of $1.50/m3) based on existing water demands in coastal regions.

• Isolated communities market – smaller, but provides entry into municipal market. • Large global desalination growth anticipated by 2020, potentially doubling the

global annual cumulative capacity by 2030 to approximately 200 m3/day1.• Freshwater scarcity and water security create near-term need for technologies that

can produce cost-effective drinking water.• Demand for reduced greenhouse gas emissions will increase need for renewable-

powered desalination.

Path to Market• Smaller gap between allowable rates and LCOW suggest a shorter path to

market than electricity production (LCOW 1.5-2 times too high vs. LCOE 7-10 times)

• Municipal or utility water systems have similar investment and regulatory scales and timelines as large-scale utility power-generation systems

• MHK-powered reverse osmosis developers need greater access to test facilities given unique challenges associated with MHK compared to other RE technologies.

• Water scarcity and limited options for new water sources provide easier access to capital for R&D and early water projects compared to similarly sized electricity generation projects (Bill Staby, Resolute Marine Energy)

• Future R&D opportunity: Floating water storage/distribution systems for both wave and ocean current system.

• Areas with limited access to electrical infrastructure may benefit from direct pressurization of membranes

Market Synergies

Desal

Aquaculture

High-Cost Utility

DoD

Remote Communities

Disaster Relief

Seawater Mining Critical Success Factors

• Access to test and characterization facilities for better characterization of membrane performance and reliability in fluctuating conditions

• Sufficient-scale demonstrations proving reliability in water production using little or no electricity.



Low High

Desalination: Stakeholders

MHK vs. CompetitionMunicipal water systems

• Grid-connected electricity and/or utility-scale renewables

o MHK will require significant cost reductions before it can compete at this level (equivalent to an LCOE reduction of 2-3 times).

• Typically large energy consumers, increasingly sensitive to the system’s GHG emissions.

Isolated distributed systems

• Diesel-powered reverse osmosis – MHK technologies likely competitive in near term.

• Distillation using waste heat – Cost depends on specific process and temperature, which may not be continuously available.

• Solar-powered reverse osmosis – Applicable to some regions, limited by geography and seasonality.

• More likely to be sensitive to noise and localized emissions.

Both municipal and isolated

• Typically seasonal misalignment. Highest water demand typically in summer, when wave resource is lowest. Severity dependent on cost of storage.

• Simple and inexpensive storage (relative to electricity) in the form of tanks and reservoirs.

• Hybrid electricity/desalination system designs can be used as electricity sink to reduce curtailment of large power-generation facilities and balance local loads. This may provide additional value for MHK systems.

Industry Players• Desalination system developerso Hyflux, IDE, Abengoa, GE, etc.

• Membrane OEMso Dow, Toray, Hydranautics, etc.

• MHK desalination developerso Resolute Marine Energy, Ecomerit, ATMOCEAN

• Other hydraulic transport companies (piping, storage tanks, etc.).

Potential Mission-Driven Partners• California Department of Water Resources (CADWR)• Florida Department of Environmental Protection• North Carolina Division of Water Resources• Hawaii (USGS Pacific Island Water Science Center)• U.S. Navy • DOE Advanced Manufacturing Office – Membranes• Environmental Protection Agency (EPA)• U.S. Bureau of Reclamation (USBR)


Desalination: Examples

Resolute Marine Energy Wave2O system

SAROS demonstration buoy

Carnegie wave desalination system

Skid-mounted SWRO system (GE Water)


Desalination: Notes

• Hawaii is a high-cost market with significant resource potential

• California resource potential is on the same order of magnitude as demand

• Currently, SWRO represents less than 1% of California demand

• MHK has potential to make significant impact on U.S. water supply.

U.S. water consumption source: Maupin, M.A., Kenny, J.F., Hutson, S.S., Lovelace, J.K., Barber, N.L., and Linsey, K.S., 2014, Estimated use of water in the United States in 2010: U.S. Geological Survey Circular 1405, 56 p., http://dx.doi.org/10.3133/cir1405.

*Resource knockdown factor of 0.5 (Kilcher 2016)** Assumes 30% CWR, and 50% of Resource Exploitable for Desal (15% of total resource).

0

10,000

20,000

30,000

40,000

50,000

60,000

Alaska Hawaii California Oregon Washington

Wave Desalination Potential vs. Demand

Total Consumption [Mm3/yr]

Desal Potential* [Mm3/yr]

AssumedRecoverable** [Mm3/yr]


Desalination: Topic Questions

Market• What is the maximum allowable

cost to produce drinking water, including any local subsidies?

• What is the premium, if any, that municipalities are willing to pay to eliminate GHG emissions, noise, or other socioeconomic impacts?

• Are there general requirements for infrastructure designs, water quality, flow rates, etc., that municipalities must comply with? To what extent is this common across different regions or countries?

• Is there a market in supplying seawater for greywater use (toilets, cleaning, sewage flushing)?

Technical • What are the allowable contaminant

levels? For SWRO, does the system need to meet drinking water standards, or are higher levels of salt allowed in different regions?

• What are the R&D challenges needed to enable MHK adoption (digital hydraulics, multistage accumulators, motion rectifiers, etc.)?

• What are the system modifications that need to be made to allow SWRO OEMs to warrant MHK-driven systems?

• What are the pre-filtration options, and what are the requirements for each (i.e., sand filtration, membranes, etc.)?

• What is the acceptable downtime for an SWRO system? Would this maintenance schedule align with an MHK maintenance cycle?

Miscellaneous• What testing infrastructure will be

needed (e.g., system characterization, membrane response, etc.)?

• Are there any significant water management strategies that should be considered when optimizing the system (i.e., price structures, demand requirements, etc.)? How does this vary from market to market?

• Is there market appeal for direct pressurization of membranes vs. producing electricity to run pumps?

• Are there other opportunities to co-locate SWRO with other markets such as seawater mining, aquaculture, etc.?


Desalination: References, Conferences, and Associations

References1. GWI 2016. Desalination Markets 2016. Media Analytics Ltd. ISBN: 978-I-907467-

38-7

2. Maupin, M.A.; Kenny, J.F.; Hutson, S.S.; Lovelace, J.K.; Barber, N.L.; and Linsey, K.S. 2014. Estimated use of water in the United States in 2010: U.S. Geological Survey Circular 1405, 56 p., http://dx.doi.org/10.3133/cir1405

3. Lantz, E.; Olis, D.; Warren, A. 2011. U.S. Virgin Islands Energy Road Map: Analysis. NREL/TP-7A20-52360. http://www.nrel.gov/docs/fy11osti/52360.pdf

4. Yu, Y.; Jenne, D. 2017. Analysis of a Wave-Powered Reverse Osmosis System and Its Economic Availability in the United States. International Conference on Ocean, Offshore and Arctic Engineering, OMAE2017-62136

5. Conagua (2015). Programa Nacional de Infraestructura 2014-2018. Strategic projects: Drinking water, sewerage, sanitation. http://www.conagua.gob.mx/english07/publications/StrategicProjects.pdf

6. Aquacraft 2011. California Single-Family Water Use Efficiency Study. The California Department of Water Resources. Final Report June 2011. http://www.irwd.com/images/pdf/save-water/CaSingleFamilyWaterUseEfficiencyStudyJune2011.pdf

7. J. S. Famiglietti and M. Rodell, "Water in Balance," Science, vol. 340, no. 6138, pp. 1300-1301, 2013.

Conferences and Associations • International Desalination Association -

http://idadesal.org/o IDA World Congress (Brazil 2017, Dubai 2019)

• American Water Works Association -https://www.awwa.org/

o 2018 Membrane Technology Conference and Expo –West Palm Beach, FL

• European Desalination Society - http://www.edsoc.com/

o 2017 Desalination with Solar Energy – Almeria, Spain

o 2018 Membrane Technology, Process and System Design – Rome, Italy

o Wind and Solar PV powered Desalination Systems (reverse osmosis and EDR) – TBD

• 2017 International Conference on Desalination and Membrane Technology -https://www.waset.org/conference/2017/10/paris/ICDMT/home

o Specific call for wave-powered reverse osmosis


November 2017

http://dx.doi.org/10.3133/cir1405

http://www.nrel.gov/docs/fy11osti/52360.pdf

http://www.conagua.gob.mx/english07/publications/StrategicProjects.pdf

http://www.irwd.com/images/pdf/save-water/CaSingleFamilyWaterUseEfficiencyStudyJune2011.pdf

http://idadesal.org/

https://www.awwa.org/

http://www.edsoc.com/

https://www.waset.org/conference/2017/10/paris/ICDMT/home



Seawater MiningMarine Energy Technologies Forum: Distributed and Alternate Applications BackgrounderNovember 2017


Seawater Mining: OverviewMarket OverviewSupplies of many valuable elements are greater in seawater than in the earth’s crust, including the 17 rare earth elements (REE) and several dissolved gases. While land-based minerals are concentrated in specific geologic and geographic areas, seawater minerals are generally distributed evenly in seawater with some higher concentrations offshore of rivers as a result of terrestrial runoff.

Most REE and valuable minerals that are used in the United States, including uranium, are imported from other nations3. This reliance on foreign supply constitutes a security concern15. Some of these REEs could be mined from seawater by passive adsorption or electrolysis, decreasing our dependence on foreign suppliers and improving our supply chain resiliency. Ammonia and hydrogen generation are other potential products that could be produced through this method24.

Power is needed for: deploying and retrieving long adsorbant films; safety and monitoring equipment; and potentially powering machinery to remove elements from adsorbants material. Existing seawater mining technologies are mostly in the research and development (R&D) stage but look promising for colocation and pairing with offshore energy technologies.

Envisioned MHK Value PropositionMarine and hydrokinetic (MHK) power could open up unexploited opportunities in seawater mining, which would further expand the mineral and gas markets. Seawater mining would also improve the diversity of the U.S. mineral supply chain, eliminating reliance on any one supplier and potentially driving down mineral costs if supplies increase. Energy costs for REEs and uranium are likely to be less sensitive to energy costs than for other markets and driven more by security concerns and the scarcity of elements (such as lithium) on land.

As an onsite power generation source, MHK would reduce or avoid the need for diesel generators or cabled connections from shore, which are costly and cannot be moved with the system if it needs to be relocated. In addition, it is believed that MHK would reduce operating costs of the offshore installation, creating a more economically viable offshore installation.

Areas of Opportunity: Overlap of Resource and Market • There exist opportunities for mining REE, other minerals, and dissolved

gasses throughout the coastal area and open ocean when sufficient wave or tidal resource is present.

• Higher concentrations of minerals near river mouths and hydrothermal vents.

• Warmer waters off Hawaii, the Caribbean, and other tropical areas are preferred for the passive extraction of minerals (like uranium); cooler waters off Alaska and the west coast are preferred for gas extraction.

• U.S. wave resources are optimal off the coasts of Hawaii and Alaska, the west coast, and in the northeast.

MHK Application


Seawater Mining: Market

Market Segments and RequirementsMINERALS AND RARE EARTH ELEMENTS

• Target earth elements (e.g., neodymium, dysprosium, europium, yttrium, and terbium), as well as lithium, tellurium, gallium, and indium, which are generally evenly concentrated in seawater. Higher concentrations of some minerals offshore are found near outputs of large rivers, as well as in close proximity to hydrothermal vents. For minerals that can be passively absorbed, warmer waters are preferred.

• Unclear what power requirements will be, as markets are in very early stages (likely similar to aquaculture for monitoring equipment).

• Projects will initially be small then grow with the requirements of commercial operations.

DISSOLVED GASSES • Mining of gasses such as hydrogen and ammonia for fuels is also possible.• Dissolved gasses to be produced at surface or at depth and stored in

containers for transport to shore.• Same market requirements as minerals.

Market Size• 2016 market for rare earth elements was 155,000 tons,

dominated by China, while U.S. consumption was 20,000 tons. • The current global market for REE is estimated to be $10 billion

and is growing at an estimated compound annual growth rate of 6%. Global market estimated to be roughly $20 billion by 203021

• The global uranium market is relatively saturated at the moment due to reduced build-out of nuclear power plants, but expected to recover over the next decade due to increased power needs. Global demand currently at 67,000 tons of uranium per year, or about $8.7B.

Path to Market• Need more refined technologies for extraction of minerals and

gasses at sea that can operate efficiently at scale. Leverage research knowledge from uranium extraction R&D.

• Engage private and corporate investment; market expected initially to be driven by government investments, followed by corporate entry in search of rare and difficult to obtain metals and other REEs.

• Processes for mining at sea, storing, transporting, and converting metals, REE, and gasses into useful fuels will need to be developed.

Market Synergies

Seawater Mining

Desalination

Marine Aquaculture

Marine Algae

Critical Success Factors• Need to collaborate with early R&D efforts to understand

development of the markets and power needs • Need to work with end users to understand cost and security

sensitivities.• Development of a seawater mining market is dependent on R&D

investments in processes for harvest and transport of minerals and gasses.


Seawater Mining: Stakeholders

MHK vs. Competition• There are no incumbent power sources for seawater mineral

extraction; however, in the future, at-sea operations could be satisfied by diesel generators, wind, solar, or MHK power sources. MHK can produce power at the mining site without the need to refuel (diesel) and with a low profile to waves (unlike wave and solar).

• Wind and solar are the most likely competitors in the near term.

• Battery backup storage is needed for all systems, but to a lesser extent for diesel and possibly MHK as well.

• Warm tropical regions where some mineral extraction is better suited would prefer solar. Solar photovoltaic array surface area required may be infeasible for offshore installations

• Colocation, reduced cabling, and around-the-clock power generation favor MHK.

Industry Players• Battery manufacturers that use lithium

o Tesla

o Sony

• Industrial chemical companies worldwide for REE:

o Molycorp

o Galaxy Resources

o Albemarle Corporation

o Polymet Mining

o Uranium Energy Corp.

o NexGen Energy Ltd.

• Chemical companies and transport organizations for gasses such as hydrogen, ammonia.

Potential Mission-Driven Partners• U.S. Department of Energy Office of Nuclear Energy

• Massachusetts Institute of Technology and other university partners

• U.S. Department of Defense

• Electric battery manufacturers

• Terrestrial mining companies that are facing falling revenues or have mines closing soon.


Low High


Seawater Mining: Examples

(Courtesy of ksuweb.jennesaw.edu)Hydrothermal vent in deep ocean, the source of many REE.(Courtesy of West Coast Placer)

Rare earth metal content of seawater, including percentage that is imported to the United States. (Courtesy of cinabrio.over-blog.es) Solubility of uranium and vanadium in seawater.

(Courtesy of Japan Atomic Energy Research Institute)



Rare Earth Elements: World Production, Reserves and U.S. Imports 2008-2013. (Courtesy of Congressional Research Services)



U.S. Department of Energy Critical Materials Strategy - https://energy.gov/node/349057


Seawater Mining: Topic Questions

Market• Which critical minerals are expected

to suffer supply shortages in the near future?

• Who are the key bulk-mineral customers who need increased and stable sources of minerals?

• Who are the customers for seawater-extracted gasses?

• For elements of strategic value, what security and other requirements would be needed?

• What is the price point at which each of the strategic elements would become commercially viable?

Technical • What are the expected power

requirements of seawater mining for uranium, lithium, other rare earth elements, hydrogen gas, and ammonia gas?

• Which of these minerals/gasses can be co-extracted?

• What aspects of a seawater mining operation will require power?

• At what distance to shore and water depth would seawater mining operations be optimized?

• Can seawater mining be paired with seawater desalination to improve efficiency?

• How does sea state and environmental conditions affect mineral extraction efficiency?

Miscellaneous• What is the public perception of

seawater mining?

• What are U.S. Coast Guard regulations and insurance requirements for offshore seawater mining operations?


Seawater Mining: References, Conferences, and Associations

References1. Bardi, U. (2010). Extracting Minerals from Seawater: An Energy Analysis. Sustainability, 2: 980-992.

2. K.-S. Chung, J. C. Lee, E. J. Kim, K. C. Lee, Y. S. Kim, K. Ooi (2004). Recovery of Lithium from Seawater Using Nano-Manganese Oxide Adsorbents Prepared by Gel Process.

3. M.S. Diallo, M. R. Kotte, and M. Cho (2015). Mining Critical Metals and Elements from Seawater: Opportunities and Challenges. Environ. Sci. Technol., 2015, 49 (16), pp 9390–9399.

4. U.S. DOE. 2010. Nuclear Energy Research and Development Roadmap: Report to Congress. U.S. Department of Energy, Washington, D.C.

5. U.S. DOE. 2011. Critical Materials Strategy. U. S. Department of Defense (2015). Strategic and Critical Materials 2015 Report on Stockpile Requirements

6. Sightlines 2016: http://foreignpolicy.com/2016/07/12/decoder-rare-earth-market-tech-defense-clean-energy-china-trade/

7. Chung, Wook-Jin, Rey Eliseo C. Torrejos, Myoung Jun Park, Eleazer L. Vivas, Lawrence A. Limjuco, Chosel P. Lawagon, Khino J. Parohinog, Seong-Poong Lee, Ho Kyong Shon, Hern Kim, and Grace M. Nisola (2017). Continuous lithium mining from aqueous resources by an adsorbent filter with a 3D polymeric nanofiber network infused with ion sieves. Chemical Engineering Journal 309: 49–62. http://dx.doi.org/10.1016/j.cej.2016.09.133.

8. Erich Schneider and Darshan Sachde (2013). The Cost of Recovering Uranium from Seawater by a Braided Polymer Adsorbent System, Science & Global Security: The Technical Basis for Arms Control, Disarmament, and Nonproliferation Initiatives, 21:2, 134-163, DOI:10.1080/08929882.2013.798993.

9. Hall, Susan, and Coleman, Margaret (2013). Critical analysis of world uranium resources: U.S. Scientific Investigations Report 2012–5239, 56 p

10. Kuo, Li-Jung, Christopher J. Janke, Jordana R. Wood, Jonathan E. Strivens, Sadananda Das, Yatsandra Oyola, Richard T. Mayes, and Gary A. Gill (2016). Characterization and Testing of Amidoxime-Based Adsorbent Materials to Extract Uranium from Natural Seawater. Industrial and Engineering Chemistry Research, 55, 4285−4293. DOI: 10.1021/acs.iecr.5b03267.

http://foreignpolicy.com/2016/07/12/decoder-rare-earth-market-tech-defense-clean-energy-china-trade/

http://dx.doi.org/10.1016/j.cej.2016.09.133


Seawater Mining: References, Conferences, and AssociationsAdditional References11. Nishihama, Syouhei, Kenta Onishi and Kazuharu Yoshizuka (2011). Selective Recovery Process of Lithium from Seawater Using Integrated Ion Exchange

Methods. Solvent Extraction and Ion Exchange, 29:3, 421-431, DOI: 10.1080/07366299.2011.573435.

12. Park, Myoung Jun, Grace M.Nisola, Eleazer L.Vivas, Lawrence A. Limjuco, Chosel P.Lawagon, Jeong Gil Seo, Hern Kim, Ho Kyong Shon, and Wook-Jin Chung (2016). Mixed matrix nanofiber as a flow-through membrane adsorber for continuous Li+ recovery from seawater. Journal of Membrane Science, 510: 141–154. http://dx.doi.org/10.1016/j.memsci.2016.02.062.

13. Picard, M. et al (2014). Extraction of uranium from seawater: design and testing of a symbiotic system. Nuclear Technology, 188: 200-217. dx.doi.org/10.13182/NT13-144.

14. DOE Critical Materials Strategy - https://energy.gov/node/349057

15. Congressional Research Services: Rare Earth Elements in National Defense: Background, Oversight Issues, and Options for Congress -https://fas.org/sgp/crs/natsec/R41744.pdf

16. Rare Earth Element Trade Gap with China - http://web.mit.edu/12.000/www/m2016/finalwebsite/problems/ree.html and https://www.usnews.com/news/blogs/at-the-edge/2013/04/02/chinas-continuing-monopoly-over-rare-earth-minerals

17. Over 40 minerals and metals contained in seawater, their extraction likely to increase in the future - http://www.miningweekly.com/article/over-40-minerals-and-metals-contained-in-seawater-their-extraction-likely-to-increase-in-the-future-2016-04-01/rep_id:3650

18. Deuterium-tritium from seawater - https://www.iter.org/sci/fusionfuels

19. Hydrocarbons from seawater - http://www.smithsonianmag.com/innovation/fuel-seawater-whats-catch-180953623/ and https://www.nrl.navy.mil/media/news-releases/

20. Uranium from desalination processes - https://mit.us4.list-manage.com/track/click?u=1a57a715520513505ca5cda89&id=42dee0c5d8&e=b1630d1a32

21. Rare Earth Elements (REE) Market - Segmented by Element, Application, Trends and Forecast (2017 - 2022) - https://www.mordorintelligence.com/industry-reports/global-rare-earth-elements-ree-market-industry

22. World Nuclear News (May 2017). “Uranium producers prepare for market recovery”. http://www.world-nuclear-news.org/UF-Uranium-producers-prepare-for-market-recovery-02051701ST.html

23. World Nuclear Association (February 2016). “Uranium Mining Overview”. http://www.world-nuclear.org/information-library/nuclear-fuel-cycle/mining-of-uranium/uranium-mining-overview.aspx

24. “World’s first tidal-powered hydrogen generated at EMEC (Sept 13, 2017)” http://www.emec.org.uk/press-release-worlds-first-tidal-powered-hydrogen-generated-at-emec/

http://dx.doi.org/10.1016/j.memsci.2016.02.062

http://dx.doi.org/10.13182/NT13-144

https://energy.gov/node/349057

https://fas.org/sgp/crs/natsec/R41744.pdf

http://web.mit.edu/12.000/www/m2016/finalwebsite/problems/ree.html

https://www.usnews.com/news/blogs/at-the-edge/2013/04/02/chinas-continuing-monopoly-over-rare-earth-minerals

http://www.miningweekly.com/article/over-40-minerals-and-metals-contained-in-seawater-their-extraction-likely-to-increase-in-the-future-2016-04-01/rep_id:3650

https://www.iter.org/sci/fusionfuels

http://www.smithsonianmag.com/innovation/fuel-seawater-whats-catch-180953623/

https://www.nrl.navy.mil/media/news-releases/

https://mit.us4.list-manage.com/track/click?u=1a57a715520513505ca5cda89&id=42dee0c5d8&e=b1630d1a32

https://www.mordorintelligence.com/industry-reports/global-rare-earth-elements-ree-market-industry

http://www.world-nuclear-news.org/UF-Uranium-producers-prepare-for-market-recovery-02051701ST.html

http://www.world-nuclear.org/information-library/nuclear-fuel-cycle/mining-of-uranium/uranium-mining-overview.aspx

http://www.emec.org.uk/press-release-worlds-first-tidal-powered-hydrogen-generated-at-emec/


Seawater Mining: References, Conferences, and Associations


November 2017

Conferences• Underwater Mining Conference. Berlin, Sept 2017. http://www.underwatermining.org/

Associations• International Minerals Mining Society. http://www.immsoc.org/


http://www.underwatermining.org/

http://www.immsoc.org/

marine and hydrokinetic distributed and alternate ... forum...• national conference on seaweed...

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