Marine energy developer Atlantis Resources Ltd. has signed a memorandum of understanding with subsea developer SBS Intl. Ltd. to establish a tidal stream array in Indonesia.
Per the agreement, the partners will construct what could ultimately become a 150 MW project at an estimated cost of US$750 million across a number of stages.
"The Indonesian archipelago of over 17,000 islands represents an extremely promising tidal stream resource," Atlantis CEO Tim Cornelius 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."
The announcement is the culmination of several years worth of research by SBS, which said it has already completed a feasibility study for the project.
Energy generated by the project will be sold to state-owned utility Perusahaan Listrik Negara (PLN) through a 25-year power purchase agreement.
"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 chair and CEO Michael Spencer said. "SBS acknowledges and welcomes Atlantis Resources' world-leading manufacturing experience, technology and United Kingdom tidal current experience."
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