Nickel Industries Limited and PT Sumber Energi Nusantara (SESNA) have entered into a binding Operational Lease and Service Agreement (OLSA) for the development, installation, operation and maintenance of a 200MWp + 20MWh battery solar project within the Indonesia Morowali Industrial Park (IMIP).
The initiative is designed to supply power to Nickel Industries’ RKEF operations and future ENC HPAL project. Additionally, it demonstrates the company’s commitment to a more sustainable future for Indonesia’s mining industry.
Nickel Industries will be the long-term offtake partner for SESNA under the OLSA agreement, without capital funding. The indicative tariff for electricity is currently lower than the company’s existing costs, with pricing expected to remain constant throughout the project.
This solar project complements the company’s existing 450kWp plus 250kWh battery storage installation at the Hengjaya Mine, replacing diesel-powered generators and saving around 31 million litres of diesel over the project’s projected 25-year life.
“We are very pleased to announce the signing of a binding Operational Lease and Service Agreement (OLSA) with SESNA for the implementation of a 200MWp + 20 MWh Battery Energy Storage System (BESS) which will be the largest solar project to be implemented in Indonesia to date and demonstrates our commitment to being at the forefront of Indonesia’s transition to renewable energy and pioneering a more sustainable future for the country’s mining industry,” Nickel Industries Managing Director Justin Werner said.
“Having already implemented a successful 450 KWp + BESS solar project at our Hengjaya Mine, this Project marks another step in our ongoing efforts to reduce our carbon footprint across our existing suite of downstream processing assets, and could provide a clean renewable source for our potential future ENC HPAL project which will be targeted to be one of the lowest carbon emitting projects globally,” Werner added.
