- Australian nickel producer Nickel Mines signed an MOU with Indonesia’s SESNA.
- The Company plans to develop a 200MWP solar capacity within Indonesia Morowali Industrial Park.
- Nickel Mines will be the long-term offtake partner for SESNA.
The shares of ASX listed global nickel producer Nickel Mines Limited (ASX:NIC) have been grabbing the spotlight today after the Company announced a new MOU.
Nickel Mines shared on Wednesday that it has signed a memorandum of understanding (MoU) with PT Sumber Energi Surya Nusantara (SESNA) to implement a 200MWp solar project in Indonesia.
Meanwhile, NIC shares were spotted trading 0.31% higher at AU$1.62 at 12.57 pm AEDT.
The Company plans to execute the capacity within the Indonesia Morowali Industrial Park (MIP), subject to specific economic parameters. NIC expects to implement the project in stages once SESNA gives a final commitment over the project proposal within three months of signing the MOU.
Key Highlights -
- As per the MOU, Nickel Mines will be the long-term off-take partner for SESNA. However, NIC will not pay for any capital funding.
- Also, the indicative tariff for electricity will remain commercial-in-confidence, competitive with other similar scale solar projects, and are likely to remain constant throughout the project.
- SESNA will act as the project initiator and is responsible for construction, financing, commissioning, and operating a 200MWp solar farm project.
- This will significantly accelerate the renewable energy supply to the Company’s Hengjaya and Ranger nickel processing operations within the region.
- The 200MWp solar project adds to NIC’s ongoing 396kWp plus 250kWh battery storage project with SESNA at Hengjaya Mine.
- NIC aims to reduce diesel consumption by nearly 31 million litres over the 25-year project life, scheduled to be commissioned in Q1 FY2022.
Related read - Five solar stocks worth watching in 2022
Indonesia-based SESNA is a leading solar development firm that owns and operates a portfolio of microgrid & solar feed-in tariff projects while providing a range of engineering & related solutions.
The latest MOU is likely to help NIC reduce its greenhouse gas emission targets and marks a significant milestone in NIC’s future energy collaboration with SESNA.