Default .htaccess file line posted with component does not work, when OpenSEF is installed, as OpenSEF was capturing /searchword/mySearchTerm/ path and returning 404 error.

My solution - disable OpenSEF for com_search component and use that string to pass search parameters.
Step by step changes:

COmponents->OpenSEF->Configuration->Components->Check box Exclude for Search
MOdules->Site Modules-><Name of mod_raf_cloud> set following parameters:
SEF Urls: Yes
Search link: component/option,com_search/%1/

Change .htaccess file. Find following lines:
RewriteEngine On
RewriteBase /

Add New line right after lines above:
RewriteRule ^component/option,com_search/(.*)/ index.php?searchword=$1&option=com_search&submit=Search&searchphrase=any&ordering=newest [QSA,NC,L]


It is not very clean solution, but it works on OpenSEF and is Search Engine Friendly.
YOu links in the cloud will look (for keyword "mySearchTerm" : http://www.yoursite.com/component/option,com_search/mySearchTerm/)

I hope this helps other users!

Great component. I was able to do this just because you were smart to add "Search Link" parameter - very clever and very flexible. Thank you!

NOte: I created separate thread for this so people can see by the title that solution is found!