Xenesys received the order to conduct the power generation portion of the feasibility study on the offshore OTEC project in the vicinity of Tahiti Island.

March 10, 2010

Xenesys Inc. received the order to conduct the power generation portion of the feasibility study on the offshore Ocean Thermal Energy Conversion ("OTEC") project in the vicinity of Tahiti Island from Pacific Otec S.A.S (a French Polynesian company, headquartered in Papeete, Tahiti) ("Project").

This Study is a full-scale feasibility study for an offshore OTEC power plant project, in which a vast amount of thermal (heat and cold) energies stored in the surface and depth of the ocean are effectively utilized to produce the electricity. The major parts of the finances for the Study are provided from the French Government, which strongly promotes the implementation of renewable energy projects within its overseas territories, and the Government of French Polynesia, which are moving forward with its policy of utilizing more of its own natural resources to reduce its dependence on imported oil. For this 11-month study, Xenesys will cooperate with DCNS, the European leader of military naval industry. With the result of the study, Pacific Otec as the project holder would prepare to move to the implementation of the project.

Ocean Thermal Energy Conversion is a technology to utilize the surface ocean water, which exists in a vast amount in tropical area such as Tahiti, and the deep ocean water, which also lays in a vast amount in a depth of ocean all over the world, to produce electricity. Tremendous amounts of both waters are reproduced in any moment in an equatorial ocean and in a polar ocean, which makes the generated power a renewable energy. Furthermore, due to the stability of temperature in both surface and deep ocean waters, the stable power outputs can be achieved throughout the seasons, weathers and even a day. It is a unique characteristic as renewable energy source, and OTEC-derived electricity can take a role of base-load power. OTEC technologies are expected to contribute to the energy and socio-economic environments of the Pacific and Caribbean islands' states in a medium term. When establishing the infrastructures to transport the energy via means converted the electricity generated from OTEC plants, OTEC can contribute to the stable procurement of energy sources for all the countries including developed countries in a long term.

Pacific Otec is a subsidiary of Pacific Petroleum Company, a New-Caledonian/French Polynesian leader in wholesale and retail businesses of oil and lubricants products in the South Pacific Ocean region. It has decided to diversify its business to renewable energy sectors and has promoted OTEC projects as one of the most promising technologies suitable for the areas of their core businesses.