- Nickel Mines (NIC) looks to step up its use of green energy with a new solar farm project that will help power its nickel processing operations in Indonesia
- According to an MoU announced this morning, PT Sumber Energi Surya Nusantara (SESNA) has been appointed as ‘Project Initiator’
- SESNA will develop, finance, build, commission, own and operate a 200MWp solar farm project within the Indonesia Morowali Industrial Park (IMIP)
- The project is expected to provide up to 20 per cent of the electricity needs for the Hengjaya Nickel (HNI) and Ranger Nickel (RNI) processing operations
- Shares in Nickel Mines are down 1.24 per cent to $1.59 per share as of 2:21 pm AEDT
Nickel Mines (NIC) is looking to step up its use of green energy with a new solar farm project that will help power its nickel processing operations in Indonesia.
According to a memorandum of understanding (MoU) announced this morning, the company has appointed PT Sumber Energi Surya Nusantara (SESNA) as ‘Project Initiator’ to develop, finance, build, commission, own and operate a 200MWp (megawatt peak) solar farm project within the Indonesia Morowali Industrial Park (IMIP).
Located in the south of Central Sulawesi Province, the IMIP is home to the Hengjaya Nickel (HNI) and Ranger Nickel (RNI) processing operations, both of which are 80 per cent owned by Nickel Mines.
While the company will act as the long-term offtake partner for SESNA, the indicative tariff for electricity — expected to remain constant over the life of the project — remains “commercial-in-confidence.” However, Nickel Mines said the pricing is considered competitive with other similar solar projects.
With the MoU now in place, SESNA has been tasked with finalising and delivering a project proposal within the next three months, at which point Nickel Mines can either proceed with or terminate the agreement at its discretion.
Managing Director Justin Werner said the solar project marks an important step in Nickel Mines’ ‘Future Energy’ collaboration with its partners in the region.
“As part of the company’s commitment to reducing its greenhouse gas emissions we are delighted to further expand our existing relationship with SESNA through the signing of this MoU for the potential provision of 200MWp of solar power,” Mr Werner said.
“It is estimated this solar project could supply up to 20 per cent of HNI and RNI’s current electricity requirements and in doing so account for a material reduction in annual CO2 emissions.”
The proposed solar farm adds to an existing 396kWp (kilowatt peak) plus 250kWh (kilowatt hour) battery storage project at the Hengjaya Mine, which SESNA has scheduled to commission in the first quarter of this year.
The Hengjaya Mine currently sources its power from diesel-powered generators. The proposed solar farm, however, is expected to reduce diesel consumption by roughly 31 million litres over the estimated 25-year project life.
Shares in Nickel Mines are up 1.24 per cent to $1.59 per share as of 2:21 pm AEDT.