The Bahamas Electricity Corp. signed the agreement with OTE Corp. to explore renewable energy systems and reduce the Bahamas' dependency on fossil fuel, according to a news release.

Importing fossil fuels can be very expensive, Feakins said. Previously, using ocean thermal energy conversion to provide electricity was not economical, since the price of oil was lower, he said. With the price of oil remaining high, island nations in particular are looking for alternative means to provide energy for their residents and businesses, he said.

The process of ocean thermal energy conversion involves pumping warm water from the ocean to heat a "working fluid" such as a mixture of ammonia and water, Feakins said. Ammonia has a low boiling point, so the working fluid boils quickly to create steam. The steam then runs an electric generator. Once the steam has been used, it returns to a liquid state, cooled via water piped in from deep below the ocean's surface, he said.

"It's putting a heat pump in the ocean and running it backwards," Feakins said.

Unlike other alternative energy methods, ocean thermal energy conversion does not require wind, solar energy or ocean currents to provide power, he said. The plants can run around the clock merely by pumping the water directly from the ocean, Feakins said.

A byproduct of thermal energy conversion is potable water filled with nutrients from the deep sea, he said. It can be used as drinking water and for agricultural or other economic endeavors, he said.

Ocean thermal energy conversion has been tested in a variety of models, including the National Energy Laboratory of Hawaii Authority in the 1990s, according to the release.

The next step in building the plants is for engineers to begin analyzing possible locations and exploring the ocean around Nassau, he said. From there, OTE staff can draft designs for the plant and estimate the cost, he said.

"We're starting with a plant in the 5- to 10-megawatt range; and though the size has not been determined, it will likely cost in excess of $100 million," Feakins said.

OTE's business model is to design, build, own and operate plants, he said. This is the first commercial use agreement the company has obtained, Feakins said.

Bahamas Electric will purchase the electricity generated by the plants at prices similar to what it pays now, he said. The electric corporation provides 85 percent of the electricity in the nation, according to the release. The country also will have the option to purchase the clean water the plant produces, Feakins said.

While there is not yet a timeline in place to begin building the plants, "they're in a hurry to get this done," Feakins said.

OTE's mission is to bring ocean thermal energy conversion to the tropical regions around the world.