The project will be supported by a 25-year power purchase agreement with the state-owned utility Perusahaan Listrik Negara (PLN).

Earlier, SBS secured exclusive rights for development of 450MW of ocean energy capacity at three offshore sites situated around the islands of Lombok and Bali. Each site will installed energy capacity of 150MW.

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.”

Atlantis said that the front end engineering and design (FEED) and environmental impact assessment (EIA) for 12MW phase I is scheduled to start later this year.

SBS INTL group chairman and CEO Michael 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 and we look forward to capturing further efficiencies when they establish the first tidal turbine manufacturing facility in Indonesia and in the region.”

Meanwhile, Atlantis said it is planning to build a dedicated facility for turbine assembly, testing and maintenance in Indonesia.

The firm is also considering constructing a turbine factory, upon securing aggregate orders for turbines exceedig100 units in the country.

In April 2016, Atlantis signed a memorandum of understanding (MOU) with SBS to establish a joint venture to develop a 150MW tidal stream site in Indonesia with an investment of $750m.