Indonesian $750 Million Project Moves Forward

Indonesia’s first ocean energy independent power producer, SBS Energi Kelautan (SBSEK), has announced it has completed final investment decision with SBS International Ltd. (SBS) to move forward with the 12 MW, Phase I of the 150-MW Nautilus marine energy project in Lombok, Indonesia.

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.

SBS said Phase 1 of the development is valued at US$64 million and will take 36 months with completion expected by 2020, and the combined value to complete all three phases of the Nautilus development is $750 million and will take an additional 48 months.

On Oct. 5, SBSEK, which is a 100% Indonesian-owned and operated independent power producer, said it is accelerating its development of engineering activities for Phase I. It has a 30-year power purchase agreement sold to state-owned electric utility, PT. Perusahaan Listrik Negara (PLN), to support the project.

SBSEK awarded the initial 36-month contract to SBS for the following: the project’s engineering, procurement and construction contact; managing offshore surveys; environmental impact studies (EIA); installing electro-mechanical components; and system integration testing.

U.K.-based Atlantis Resources Ltd. said it will supply eight by 1.5-MW Atlantis AR1500 turbine systems, engineering services and other equipment to SBSEK through a preferred supplier agreement it signed earlier this year with SBS.

Atlantis said it intends to manufacture and install the Phase I equipment, followed progressively by a site expansion to the 70 MW Phase II and ultimately up to a potential capacity of 150 MW in Phase III.

“Having been appointed by SBS earlier this year as their preferred supplier, I am delighted that Phase 1 of the Nautilus tidal stream project is moving ahead in earnest,” said Tim Cornelius, Atlantis chief executive officer.  “This would represent our largest ever equipment order from Asia and, with 100 by 1.5 MW turbines planned for the total project, equates to a multi-hundred-million-dollar supply contract for Atlantis.”

Endrue Fasa, SBSEK president director, said, “On behalf of Indonesia’s first ocean energy independent power producer, I am delighted to announce final investment decision with our Indonesian investment partners. We are now accelerating front-end engineering design; EIA and related activities advancing project Nautilus toward the Phase I commercial operation date.

Fasa also said local content of turbine and related equipment for the projects will progressively increase from 65% initially, to 95% within five years following the construction of a planned tidal turbine manufacturing plant in Indonesia.

SBS ocean energy project managers, engineers and partner teams have supported the Nautilus tidal energy project from concept definition through feasibility study stages since January 2013.