Atlantis has signed a deal with SBS INTL to supply tidal turbines, engineering, services and equipment for 150MW tidal stream array in Lombok, Indonesia.

Indonesia's state-owned utility PT. Perusahan Listrik Negara (PLN) has signed a 25 -year power purchase agreement for the project.

SBS, the UK-based developer or renewable energy projects, has received exclusive development rights for three offshore sites situated around the Islands of Lombok and Bali. The offshore sites will have a combined energy generating capacity of 450MW.

Atlantis plans to establish a facility for turbine assembly, testing and maintenance in the Island nation, in line with the Indonesian government recently extended support for renewable energy industry through sustainable development initiatives.

Its plans also include setting up of a local turbine manufacturing facility, once orders for turbines reach 100 units in Indonesia.

Atlantis CEO 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 INTL group chairman & CEO Michael J. Spencer said: “Atlantis has demonstrated strong commitment to work with SBS on our tidal energy projects in Indonesia and we are confident we have selected the best possible partner.

“Together, we will complete an efficient supply chain for the first 150MW site as Atlantis establishes its turbine assembly and O&M base and we look forward to capturing further efficiencies when they establish the first tidal turbine manufacturing facility in Indonesia and in the region.”

Front end engineering and design (FEED) and environmental impact assessment (EIA) for phase 1 (12MW) of the project is expected to begin this year. In April last year, the two companies signed a memorandum of understanding to establish a joint venture for the development of a tidal stream site in Indonesia, with an investment of $750m.