PLN SUBSIDIARY PT. INDONESIA POWER AND SBS SIGN MoU
In November 2021, SBS and State-owned electrical developer, PT. Indonesia Power, CEOs signed a MoU to carry out a feasibility study of the Larantuka Strait and the Island’s electrical grid. Since MoU signing, Indonesia Power has carried out due diligence of our Project Development Plan, and Joint Venture Agreement. The Parties then agreed to jointly carry out a feasibility study including an offshore survey to evaluate primary tidal flow data to evaluate the optimal capacity that can be generated from the sustainable tidal resources, and which can be transmitted to the local PLN electrical grid from certified, TRL-9 tidal turbine generators (TTGs).
Following commencement of the feasibility study (approved by Indonesia Power in February 2022), SBS will deliver a fully detailed report. Following approval by their Board of Directors, Indonesia Power will then apply to its Owner (PLN) for an Application for Assignment, which approves Indonesia Power, in joint participation with SBS to progress to the next stage, which is to form a Special Purpose Vehicle (SPV) on a 51% - 49% ownership basis in favour of Indonesia Power. The SPV will become the Independent Power Producer (IPP) and will enter into a Power Purchase Agreement with PLN. Project development finance will be provided to the IPP for project procurement. The joint partners will carry out FEED and Environmental studies in compliance with Indonesian Government requirements for Tidal Turbine Generator and related equipment manufacturing, followed by installation of the zero-emission TTGs, with drive trains configured to exactly match the characteristics of the local tidal resources at the offshore sites.
MoU Signing event with Indonesia Power – November 2021
MoU Signing event with Indonesia Power – November 2021
ISOE event - Speakers with organising committee
INDONESIAN GOVERNMENT’S INTERNATIONAL SEMINAR ON OCEAN ENERGY,
BANDUNG, WEST JAVA – INDONESIA, 08 DECEMBER 2016
SBS was invited to present on methods and importance of oceanic resource modelling at the ISOE event. The event was well attended and opened by the Government’s Director of its Marine Geological Institute, P3GL, with a Keynote Speech from the Director of the Government’s New and Renewable Energy division, EBTKE.
Mike giving presentation at the ISOE Event
BKPM MoU Signing Event in London (20 April 2016) - President's Opening Speech
INDONESIA’S FIRST COMMERCIAL-SCALE OCEAN ENERGY (TIDAL-STREAM) POWER GENERATION FACILITY
On Wednesday, 20 April 2016, the BKPM B2B trade event for UK to Indonesia investments at the London Mandarin Oriental Hotel was opened by the Chairman of BKPM and followed by an entertaining and inspiring speech from the Indonesian President. During the event, UK Project Developer SBS, signed MoUs with two of the world’s largest turbine OEMs (Original Equipment Manufacturers), Atlantis Resources Ltd and Andritz Hydro Hammerfest Ltd, for its Indonesian Ocean Energy Power Generation Project, on behalf of Indonesian IPP (Independent Power Producer), PT. SBS Energi Kelautan (SBS Ocean Energy Ltd).
Separately today, SBS signed additional MoUs with Black & Veatch Ltd for continuation of specialist development engineering and Environmental Impact Assessment (EIA) support on a long-term basis and with the Centre for Coastal & Marine Studies of Bogor Agricultural University (IPB) for EIA support in Indonesia.
Phase 1. of the development (12MW) is valued at US$51m and will take 36 months. The combined value of the SBS tidal-stream power generation development (150MW) is valued at US$380m and will take an additional 48 months.
SBS Group Chairman & CEO, Michael J. Spencer, commented on the BKPM event saying:
"The BKPM B2B event at the London Mandarin Oriental Hotel was a very professionally-organized and delivered event which, in my opinion, achieved the desired result - a positive impact on British companies that are interested in better understanding the very significant progress and improvements which have been implemented for establishing major foreign investments in Indonesia by President Jokowi and his cabinet - in a remarkably short timeline since winning the last election. It was a great privilege for us to be invited to this event by BKPM and for SBS to sign MoUs with its UK partners who will contract directly with our Indonesian company and local partners for the further development, construction and commissioning of Indonesia’s first commercial-scale ocean energy power generation facility."
Liza signing MoUs with turbine OEMs, Atlantis Resources CEO, Tim Cornelius, and Andritz Hydro Hammerfest MD, Rudolf Bauernhofer at the BKPM event, Mandarin Oriental Hotel, London, 20 April 2016
CONEX-2015 (19Aug'2015) - PLN CEO Pak Sofyan Basir and Mike shaking hands after signing MoU
PLN & SBS-APPROVED PRESS RELEASE
INDONESIA STARTS DEVELOPMENT OF ITS FIRST COMMERCIAL-SCALE OCEAN ENERGY POWER GENERATION FACILITY
INDONESIA STARTS DEVELOPMENT OF ITS FIRST COMMERCIAL-SCALE OCEAN ENERGY POWER GENERATION FACILITY
JAKARTA - 19 August 2015. Indonesia’s national electrical utility company, PT. PLN (Persero) (PLN) and independently-owned British marine, subsea and renewable energy developer, SBS INTL LTD (SBS) signed a Memorandum of Understanding for the development of Indonesia’s first commercial-scale ocean energy power generation facility. 11 November 2021, SBS signed a MoU with Indonesia Power. Since that time, SBS has established an Independent Power Producer to operate tidal turbine array facilities under contract with PLN with a PPA (Power Producer Agreement).The planned tidal-stream facilities will start initially with a capacity of 10MW in the Strait of Larantuka.
The initial Indonesian tidal energy project in the Larantuka Strait will form part of PLN’s ‘De-Dieselisation Plan’, which is to replace as many of their existing >5,000 diesel-fuelled generators progressively around the Archipelago with renewable energy devices. Zero emission tidal-stream turbines are out-of-sight under the ocean and silent. Environmentally, tidal turbines have the lowest impact of all ocean renewable technologies and will play a significant role in delivering electricity to satisfy increased consumer demand in remote Indonesian islands while reducing GHG’s which in turn will help to reduce Indonesia’s carbon footprint.
The UK remains at the forefront in the world-wide delivery of ocean energy development technology and tidal-stream turbine arrays. SBS is the only UK renewable energy developer to be endorsed in writing by the British Embassy Jakarta to transfer its tidal-stream developer technology from the UK to Indonesia. The collaboration between PLN, Indonesia Power and SBS will accelerate Indonesia’s power generation energy mix and secure its transformation toward more renewable energy into the future and for the growth of Indonesia’s ocean energy industry.
