Nickel Industries signs term sheet for 200-MWp solar project in Indonesia

Australian company Nickel Industries Ltd (ASX:NIC) has signed a binding term sheet for the installation of a 200-MWp solar project with a 20-MWh battery to power the operations of the company in Indonesia.

The agreement is with Indonesian solar developer PT Sumber Energi Surya Nusantara (SESNA), which will develop, install, operate and maintain the project at the Indonesia Morowali Industrial Park (IMIP). The installation will supply power to Nickel Industries’ Hengjaya Nickel, Ranger Nickel and Oracle Nickel processing operations.

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Nickel Industries will be the long-term offtaker of the project.

“The fact that Nickel Industries is not required to provide any funding for the project is very attractive, as is the stable nature of the pricing which will be fixed over the 25-year contract period and which is currently lower than existing power costs,” said managing director Justin Werner.

The binding term sheet follows the signing of a memorandum of understanding (MoU) with SESNA in January. The project will add to a battery storage project of 396 kWp plus 250 kWh that was commissioned by SESNA at the Hengjaya Mine.

Nickel Industries plans an additional 220-MWp solar project in the Hengjaya Mine area in partnership with Singapore-based Quantum Power Asia Pte Ltd.