KOTA KINABALU: Sabah could unlock huge economic opportunities by using its Ocean Thermal Energy Conversion (OTEC) potential, said Universiti Teknologi Malaysia's Ocean Thermal Energy Centre founding director, Professor Datuk Dr A. Bakar Jaafar.
Speaking at the "Blue Economy Renewable Energy" forum at the Sabah International Blue Economy conference here yesterday, he said OTEC could generate billions of ringgit from different sources of income.
"Sabah has the potential of 20,000 megawatts. If we harness this, we could offset 150 million tonnes of CO2. If each tonne of CO2 is valued at US$10, we could earn at least US$1.5 billion from carbon credits, and this amount could increase," he said.
Bakar added that hydrogen production from OTEC could bring in around US$21 billion per year in revenue.
He added hydrogen, which could be used as a clean energy source, would cost about RM28 per kg, which works out to only 11 cents per km for hydrogen-powered vehicles.
The OTEC's use of cold deep-sea water could benefit Sabah's industries, as seen in Japan.
"Umibudo (sea grapes), known as Lato in Sabah, sells for US$70 per kg in Japanese supermarkets, and up to US$140 per kg at the Tokyo airport. We could see similar benefits from cold water use here," he added.
Bakar estimated that a 100-megawatt OTEC project would require US$750 million in capital, with a working capital of US$25 million.
"We can recover the investment within seven to 10 years," he said, adding the recovery is from the sale of raw water for minerals and some carbon credits.
Another panel member, UK Global OTEC founder and chief executive officer Dan Grech said that starting small is key to making OTEC successful.
"The world isn't ready for large-scale OTEC projects just yet, so we need to begin with smaller, more feasible systems while continuing research and development," he said.
Grech also added that beyond energy production, Sabah could become a global hub for developing the next generation of engineers and scientists to lead OTEC advancements.