Atlantis bags turbine supply deal for Indonesian tidal energy project

Atlantis has signed a Preferred Supplier Agreement with SBS for the supply of turbines, engineering services and equipment for a 150MW tidal stream array in Lombok, Indonesia.

The project will be supported via a 25-year power purchase agreement with PT Perusahaan Listrik Negara (PLN), the state-owned electrical utility company.

SBS, a UK-based international renewable energy project developer with a branch office and IPP (Independent Power Producer) in Jakarta, has been awarded exclusive development rights for three offshore sites situated around the islands of Lombok and Bali, which have a combined ocean energy capacity of 450MW (150MW each).

Front End Engineering and Design (FEED) and Environmental Impact Assessment (EIA) for Phase I, with a capacity of 12MW, is expected to commence this year.

Tim Cornelius, CEO of Atlantis, said: “Indonesia has clear potential for commercial-scale tidal power and the support of PLN shows there is also the demand and support for the development of tidal power in remote island locations across Indonesia.”

Atlantis said that it will seek to establish a dedicated local facility for turbine assembly, testing and maintenance and a local turbine manufacturing facility, once aggregate orders for turbines exceed 100 units in Indonesia. This is in accordance with the Indonesian Government’s recent commitment to stimulating the domestic renewable energy industry via sustainable development initiatives, according to the company.

Michael J. Spencer, Group Chairman & CEO of SBS, 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 O&M base and we look forward to capturing further efficiencies when they establish the first tidal turbine manufacturing facility in Indonesia and in the region.”