Atlantis and SBS to work on Indonesian tidal power project

Atlantis Resources announced a major new deal on Thursday, entering into a memorandum of understanding with international marine and subsea energy developer SBS over a planned tidal stream project in the Indonesian archipelago.

The AIM-traded company said under the agreement, Atlantis and SBS will work together to establish a joint venture, to develop a 150 MW tidal stream site in Indonesia.

The total cost of has been estimated at $750m, Atlantis said, and will be constructed over a series of stages.

SBS had already 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.

"The Indonesian archipelago of over 17,000 islands represents an extremely promising tidal stream resource. 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,W said Atlantis CEO Tim Cornelius.

"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."

Atlantis already had the largest portfolio of tidal power projects in the United Kingdom, which represent a combined potential capacity of almost 700 MW. It also has other development projects throughout China, Canada, India among other places.

SBS group chairman and CEO Michael Spencer said his firm was delighted to be entering into the agreement with Atlantis.

"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.”