Tidal current power developer Atlantis has signed a memorandum of understanding (MoU) with marine, subsea, and renewable energy firm, SBS to develop 150MW of tidal energy site in Indonesia.
The proposed tidal power project will be built at a cost of around $750m. A joint venture will also be set up to carry out the development of the project in a phased approach.
Atlantis CEO Tim Cornelius said: "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.
"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."
The agreement follows a feasibility study conducted by SBS to assess the practicality of the proposed project.
The electricity generated at the project will be sold to the state-owned electricity company, Perusahaan Listrik Negara (PLN), for a period of 25 years under a power purchase agreement.
SBS chairman and CEO Michael Spencer said: "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.
"We are delighted to be entering into this agreement with Atlantis, whose experience and industry leading marine energy expertise will complement our own and help us to advance the development of the first commercial-scale tidal array in South East Asia."
Atlantis has 700MW of tidal power projects in the UK, in addition to its other development projects throughout China, Canada, India and a number of other parts of the world.
The company recently entered a partnership with infrastructure assets fund manager Equitix to develop its portfolio.
Through the partnership, Equitix’s managed funds intend to acquire at least 25% of each Atlantis project vehicle at financial close.