Atlantis Resources has signed a preferred supplier agreement for its up to 150MW tidal project in Indonesia co-developed with SBS.
The Edinburgh outfit will also supply engineering services and equipment for the scheme in Lombok.
Front end engineering and design (FEED) and environmental impact assessment (EIA) for a 12MW first phase is expected to kick off by the end of the year.
The project will be supported via a 25-year PPA with state-owned power utility PT Perusahan Listrik Negara.
Last year, Atlantis and SBS signed a memorandum of understanding to build a phased project in the Bali Strait and Lombok Strait costing up to $750m.
Atlantis 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.
Chief executive Tim Cornelius 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.”
SBS has been awarded exclusive development rights to three offshore sites which are situated around the islands of Lombok and Bali and have a combined ocean energy capacity of 450MW.
SBS chief executive Michael J. Spencer said: “Together, we will complete an efficient supply chain for the first 150MW site as Atlantis establishes its turbine assembly and O&M base.
“We look forward to capturing further efficiencies when they establish the first tidal turbine manufacturing facility in Indonesia and in the region."
Image: MeyGen Phase 1A (Atlantis)