Indonesia aims to launch 15 CCUS projects by 2030

Indonesia aims to bring 15 potential carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) projects onstream between 2026-30.

Indonesia has carbon storage potential in 20 basins, comprising573bn t of saline aquifer storage and 4.8bn t of depleted oil and gas reservoirs across Sumatra, Java, Kalimantan, Sulawesi and Papua, according to the country's ministry of energy and mineral resources (ESDM).

The government is pushing for the Sunda and Asri basins as well as the Bintuni basin to become CCS hubs, said the ESDM's director of upstream oil and gas business development, Ariana Soemanto.

Indonesia in January issued a presidential regulation on the implementation of CCS activities, which sets out the framework for the country's CCS development. CCS development in Indonesia can be undertaken via two pathways under the regulation, said Ariana. The first is the implementation of co-operation contracts in existing oil and gas areas by upstream contractors. The second pathway allows parties to establish a separate CCS business through target injection zone exploration permits and carbon storage operation permits.

The regulation also allows CCS operators to set aside 30pc of the storage capacity from international sources. Singapore was the first country to sign an agreement with Indonesia after the regulation was issued, to co-operate on cross-border CCS.

Countries such as Malaysia and Indonesia have the storage space to sequester captured CO2, but not the funds to develop the infrastructure. Direct government investment is necessary to develop and install CCS infrastructure such as pipelines, and carbon pricing could be a solution.

Indonesia also launched its carbon exchange in September last year.

By Prethika Nair