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Nickel Industries signs term sheet for battery solar project – EQ Mag Pro

Nickel Industries signs term sheet for battery solar project – EQ Mag Pro

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PERTH : ASX-listed Nickel Industries has signed a binding term sheet for a 200 MWp plus 20 MWh battery solar project within the Indonesia Morowali Industrial Park (IMIP), to supply power to the Hengjaya, Ranger and Oracle nickel processing operations.

The binding term sheet with PT Sumber Energi Surya Nusantara (SESNA) builds on the memorandum of understanding (MoU) signed with SESNA in January.

Nickel Industries on Wednesday said that SESNA had presented the company with a compelling project proposal which outlined, amongst other things, the key responsibilities and deliverables of the solar project.

Nickel Industries will be the long-term offtake partner for SESNA and will not be required to contribute any capital funding. The indicative tariff for electricity, which is currently considerably lower than existing power costs, is expected to remain constant over the life of the project.

This solar project supplements the 396 kWp plus 250 kWh battery storage project for integration into the facilities at the Hengjaya mine, which has been fully commissioned by SESNA. Nickel Industries expects that the Hengjaya mine solar project, which replaces diesel-powered generators, will reduce diesel consumption by approximately 31-million litres over the 25-year projected project life.

“We are very pleased to announce the next step in our collaboration with SESNA to develop the first renewable energy production within IMIP, which reflects the company and Tsingshan’s commitment to a material reduction in its greenhouse-gas emissions,” said Nickel Industries MD Justin Werner.

“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.

“Nickel Industries is continuing to expand its renewable energy exposure and this binding term sheet, along with the MoU signed with Quantum in May of 2022 for an additional 220 MWp, is another step towards continuing to grow our renewable energy mix and reduce our carbon dioxide emissions.”

Source: miningweekly
Anand Gupta Editor - EQ Int'l Media Network