Chief minister Hajiji Noor said these companies have been given a year to finalise their studies.

The findings will be presented for the Sabah government’s consideration and approval.

After approval is given, Hajiji said the Energy Commission of Sabah will then issue conditional letters of award to the companies to develop the new technology.

“The commission has also received expressions of interest from companies from Australia and the United Kingdom to develop Otec in Sabah.

“The commission is studying their proposals,” he said at the Sabah state legislative assembly sitting today, reported Bernama.

He was responding to a question from nominated assemblyman Yong Teck Lee on the progress or development of Otec after the assembly passed the Ocean Thermal Energy Conversion Enactment 2024 in April.

Yong wanted to know whether investors were ready to develop the technology in Sabah.

Hajiji said a preliminary feasibility study is also being conducted by the UTM Ocean Thermal Energy Centre, through a collaboration between Universiti Teknologi Malaysia and Universiti Malaysia Sabah, for the development of a potential Otec plant project in Sabah.

The study, carried out with financing from Shell’s Marine Renewable Programme, is expected to be completed by the end of this year, he said.

Otec is a renewable energy source that generates electricity from the thermal gradient between deep and surface seawater.

Hajiji added that, based on research findings, Sabah has the potential to generate up to 20,000 megawatts (MW) of electricity, comprising 15,000MW in the west coast area and 5,000MW in the east coast area.

Hajiji said the Sabah International Blue Economy Conference 2024, launched by Prime Minister Anwar Ibrahim on Oct 19, was an important platform to introduce and promote Otec to various local and foreign industry players.