Atlantis Resources has signed a memorandum of understanding with SBS to develop a 150 MW tidal stream site off Indonesia.
Under the agreement, Edinburgh-based tidal player Atlantis will work together with privately-owned international renewable energy developer SBS to establish a joint venture that would facilitate the tidal site development.
The total cost of this commercial array has been estimated at $750 million and will be constructed over a number of stages, Atlantis informed.
SBS has completed a feasibility study and the project will be supported by a 25-year power purchase agreement with the state-owned electricity company, Perusahaan Listrik Negara (PLN).
The 150 MW commercial array’s project sites in Indonesia will be located in the Bali Strait and Lombok Strait, and the the first 12 MW phase of the tidal stream site is expected to be operational by 2018, according to Atlantis.
Tim Cornelius, CEO of Atlantis, said: “We are looking forward to working with SBS on this exciting project that offers the potential to provide highly predictable tidal stream power generation to the people of Indonesia. This also represents an opportunity for us to demonstrate our industry leading tidal energy technology in a range of tidal conditions and export some of the intellectual property we have created through the development of the MeyGen project from Scotland to other parts of the world.”
Michael Spencer, Group Chairman and CEO of SBS, said: “After more than three years of research into Indonesia’s archipelagic ocean resources, resulting in an exclusive offshore site development agreement with state-owned utility PLN, we are progressing toward signing a bankable 25-year Feed-in Tariff for the project. SBS acknowledges and welcomes Atlantis Resources’ world-leading manufacturing experience, technology and UK tidal current experience.”
To remind, SBS signed the memorandum of understanding with PLN for the phased development of tidal energy power plant in Indonesia in August last year.