Atlantis Resources Ltd. (Atlantis) and DCNS Energies, two United Kingdom-based energy development companies, today announced agreements to develop marine energy in Indonesia.
Atlantis announced it has signed a preferred supplier agreement with SBS International Ltd. (SBS), for the supply of turbines, engineering services and equipment for a 150-MW tidal-stream array located in Lombok, Indonesia.
Energy generated by the project will be sold to Indonesian state-owned utility Perusahaan Listrik Negara through a 25-year power purchase agreement.
In April 2016, HydroWorld.com reported Atlantis and SBS signed a memorandum of understanding and per the agreement, the partners would construct a 150 MW project across a number of stages at an estimated cost of US$750 million.
Phase 1 of this project is expected to commence this year and according to Atlantis, involves front-end engineering and design, and an environmental impact assessment.
In November 2015, according to SBS, the company was the first to establish itself as a marine energy independent power producer in Indonesian.
SBS is a privately-owned international marine, subsea and renewable energy project developer based in Aberdeen, Scotland. The company has branch offices in Bangkok, Thailand; Kuala Lumpur, Malaysia; London, England and Jakarta, Indonesia.
Additionally, SBS has been awarded exclusive development rights to three offshore sites, which are situated around the islands of Lombok and Bali. SBS estimates once the three marine energy sites are completed, they could produce a total combined capacity of 450 MW.
Michael J. Spencer, SBS group chairman and chief executive officer, said, “Atlantis has demonstrated strong commitment to work with SBS on our tidal energy projects in Indonesia and we are confident we have selected the best possible partner. Together, we will complete an efficient supply chain for the first 150MW site as Atlantis establishes its turbine assembly and operations and maintenance base, and we look forward to capturing further efficiencies when they establish the first tidal turbine manufacturing facility in Indonesia and in the region.”
Atlantis said it will seek to establish dedicated local facilities for turbine assembly, testing and maintenance, and turbine manufacturing once aggregate orders for turbines in Indonesia exceed 100 units.
DCNS Energies and PT AIR signed a letter of intent today designed to deliver a roadmap for the engineering, industrial development and commercial ramp-up of a tidal energy industry in Indonesia.
DCNS Energies and PT AIR will combine to analyze and assess the commercial and economic conditions required to build a tidal energy industry, according to DCNS Energies. This will allow the two partners to develop a roadmap to ensure the creation of a sustainable Indonesian tidal industry.
PT AIR is an Indonesian company focused on marine renewable energy and according to the company, it is spearheading the marine tidal energy industry in Indonesia.
PT AIR’s manufacturing facility manufactures tidal turbine products for use in Indonesia and throughout Southeast Asia. The company said it works closely with marine consulting and coastal engineering research firm PT ASR, which has been actively surveying and scouting suitable locations for tidal energy projects throughout the Indonesian Archipelago.
Herve Guillou, DCNS group CEO, said, “Over the past two years, we have been working closely with PT AIR to assess the most suitable sites for the development of tidal energy projects in Indonesia. Today’s signing of the letter of intent is a further step in our cooperation that will allow us to structure our organizations and industrial plans for the creation of a tidal industry in the country, with a high level of local manufacturing content.”
Panji Adhikumuro Soeharto, president director at PT AIR, said, “Our ambition is to build a local tidal industry with economic and social benefits for Indonesia. In that purpose, our cooperation with DCNS Energies will be a serious asset to convince Indonesian authorities that thanks to its regularity and predictability, tidal energy is an investment that will contribute to fulfill Indonesia’s renewable energy targets as a maritime country.”
DCNS Energies also said it will use its expertise gained from developing marine energy projects and the experience of its subsidiary, tidal technology company OpenHydro, in designing, manufacturing and installing tidal turbines in various Indonesian maritime environments.