Data from drifting buoys deployed in April, 2002, as part of the North Pole Environmental Observatory project have been analysed to estimate ocean heat flux in the time period from 1 May 2002 to 11 Mar 2003. Prior to late January, the observatory remained in deep water, but subsequently drifted directly over the Yermak Plateau, a relatively shallow feature north of Svalbard. While over deep water, heat flux was dominated by storage and release of solar energy in the ocean boundary layer during summer. The most likely annual average value for 2002 was 2.6 W m-2, less than previous determinations in the western Arctic. Over Yermak Plateau, heat flux at the interface came from mixing of warmer water into the boundary layer from below. When the observatory was in water with depths less than 1200 m, the average heat flux was around 22 W m-2.