Tivan Limited has signed a letter of intent with Sun Cable’s Australia-Asia Power Link project to talk about the possible supply of 200 MW to 300 MW of solar-generated power that would be used to run a mineral processing plant to be built at Middle Arm, while administrators are still considering bids by potential new owners for the proposed $26-30 billion power project.

Sun Cable chief executive officer David Griffin said the one-year non-binding agreement was a crucial milestone for both Sun Cable, Tivan and the Northern Territory.

He said under the letter of intent signed with Sun Cable subsidiary AAPowerlink Australia Assets, Sun Cable and Tivan would pool resources on the design, delivery and use of the planned electricity supply and purchase from AAPowerLink for the process plant.

Sun Cable feel into administration in January and appointed FTI Consulting to head up the voluntary administration process with an aim to either recapitalise the company or sell it to new owners in order to progress the next stage. At the start of February FTI Consulting opened up the bidding process.

Sun Cable’s Environmental Impact Statement to the Northern Territory Environment Protection Authority shows plans for a 17-20 GW, 12,000ha solar farm at Powell Creek station, about 70km south-west of Elliott, with a 36-42 GWh of battery energy storage.

The EIS states a 800km 6.4 GW overhead transmission line will carry the power to a Darwin converter site at Murrumujuk, on the coast of Shoal Bay south of Gunn Point, with about 800 MW of power to be used locally, the rest will be sent from a cable transition facility at Gunn Point Beach via up to six 4,200 km subsea cables running to Singapore.

“The provision of 24/7 dispatchable, renewable electricity can underpin industrial processes, enabling a new wave of green industrial development,” Mr Griffin said.

While the AAPowerLink project has remained uncertain since Sun Cable entered administration, Tivan said its one-year deal with the company would see it progress commercial and technical discussions leading to the possible sale of around 300 MW of renewable electricity from the project.

Mr Griffin said the power would be used to for processing minerals from Titan’s vanadium, titanium, and iron ore project at Mt Peak, which is under development 235km northwest of Alice Springs.

“As the first-moving public proponent at Middle Arm, we have an important interest in how it is shaped and by partnering with Sun Cable, we are endorsing and facilitating the provision of large-scale renewable energy to the precinct,” Tivan executive chairman Grant Wilson said.

FTI Consulting earlier said it is confident it would complete the sale by May, after several investors lodged initial bids for the company, which is majority owned by billionaires Andrew Forrest and Mike Cannon-Brookes.

Both billionaires are said to be among those that bid to take control of Sun Cable.

Other companies reportedly that are interested in acquiring Sun Cable include Spain’s Iberdrola, Macquarie’s infrastructure arm, Canadian giant Brookfield, Singapore’s GIC, and Quinbrook.