The 150MW Nautilus tidal stream project in Lombock, Indonesia, has taken a major step forward with news that its investors have agreed to progress to Phase 1, which will involve an initial 12MW capacity.

Owner SBS Energi Kelautan (SBSEK) is expected to place a firm order for 8 x 1.5MW Atlantis AR1500 turbine systems for this phase, which is supported by a 30-year power purchase agreement in place with the State owned electrical utility company, PT. Perusahaan Listrik Negara (Persero) (PLN).

Earlier this year, Atlantis signed a Preferred Supplier Agreement (PSA) with SBS Intl Ltd for the supply of turbines, engineering services and equipment for the project.

Under this PSA, Atlantis intends to manufacture and install 8 x 1.5MW turbines by Q1 2020 (Phase I), followed progressively by a site expansion to 70MW (Phase II) and ultimately up to a potential capacity of 150MW (Phase III). The supply of turbines will be subject to agreement of full contractual terms between the relevant parties. SBSEK has awarded the Engineer, Procure, Construct, Install and Manage contract for offshore surveys; completion of FEED; EIA studies; turbine/power cable manufacturing turbine assembly, system integration testing and installation activities to SBS.

"This is a big announcement for the Asian tidal stream market. 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,” commented Tim Cornelius, CEO of Atlantis. “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.

“I have said before that Indonesia has clear potential for commercial-scale tidal power and we look forward to being a part of this exciting project which will deliver clean, predictable energy for the people of Indonesia. SBS have done an excellent job to originate and develop this project with the Indonesian Government, PLN and their private equity investors."