Tidal power specialist Atlantis Resources Ltd (LON:ARL) has moved a step closer to securing a firm order for its turbines in Indonesia.
Its customer and owner of the 150 megawatt (MW) Nautilus tidal stream project in Indonesia, SBS Energi Kelautan (SBSEK), has decided to proceed with investment on Phase 1 of the project.
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Atlantis said this represents an important step towards a firm order for 8 x 1.5MW Atlantis AR1500 turbine systems.
Phase 1 of the Nautilus project will be supported by a 30-year power purchase agreement in place with the State owned electrical utility company, PT. Perusahaan Listrik Negara (Persero) (PLN).
Under the preferred supplier agreement signed with SBS Intl, a privately-owned international marine, subsea and renewable energy project developer, Atlantis intends to manufacture and install eight 1.5MW turbines by the first quarter of 2020, followed progressively by a site expansion to 70MW (Phase II) and ultimately up to a potential capacity of 150MW (Phase III).
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“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. This would represent our largest ever equipment order from Asia and, with 100 x 1.5MW turbines planned for the total project, equates to a multi-hundred million dollar supply contract for Atlantis,” said Tim Cornelius, chief executive officer of Atlantis.
“SBS have done an excellent job to originate and develop this project with the Indonesian Government, PLN and their private equity investors," he added.
Andrew Shepherd-Barron at Peel Hunt has his estimates under review following this morning’s announcement.
“Income from the sale, together with associated services, could be substantial in the future, albeit the company will still be some way away from break-even,” he noted.
Shares in Atlantis Resources were 13% higher at 42.89p on the news.
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