UKEF shows interest to fund SBS’ tidal power project in Indonesia

UK-based tidal energy project developer SBS and its state-owned partner Indonesia Power have received expression of interest (EoI) from UK Export Finance Agency (UKEF), confirming multi-million dollar project development financing for a tidal power scheme in Indonesia’s Larantuka Strait.

According to developers, the multi-million project development financing is for MW-scale tidal turbine generator facilities in Indonesia.

The proposed Larantuka Strait plan of development for tidal energy arrays provides for clean, zero-emissions, sustainable, renewable tidal energy power to the communities of East Flores and Adonara in direct support of a decarbonization plan by PLN, mandated by the Indonesian Government.

Under a fully-executed, 50-50 joint-participating agreement between Indonesia Power and SBS, Indonesia Power provides government/PLN liaison and permitting, while SBS is the nominated project director.

During a recent feasibility study, Indonesia Power funded an IEC-compliant primary data tidal resource survey activity, while SBS delivered a 220-page feasibility study report at its own cost, which included a copy of the ITB (Institute of Technology Bandung) survey activity report; as well as feasibility study and survey data analysis by our UK and Indonesian metocean specialists.

Michael J. Spencer, SBS Group chairman and CEO, said: “Clearly, the EoI from UKEF is a vote of confidence for Indonesia and the joint-participating parties. We warmly thank the British Government’s local country manager for UKEF and London team, as well as British Embassy team in Jakarta for their excellent support and encouragement.

“We have delivered a project development plan and scope of work for the next development stages for the Larantuka projects and look forward to commencing the procurement process with Indonesia Power to select a specialist contractor for the FEED activity.”

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