Verdant Power is about to wrap up its commercial license application, which means it could begin installing as many as 30 underwater turbines between Queens and Roosevelt Island by 2011.
The turbines would collectively provide 1 megawatt of electricity - enough to power 30,000 houses, said Trey Taylor, president of Verdant.
"There is such a demand for energy right now," he said. "We're showing that this technology is viable."
It hasn't been an easy road. After eight years of research and testing, Verdant came up with a final project design in December.
It includes a new "optimized turbine," which is smaller and has fewer parts than the ones it initially used, Taylor said.