Decarbonization Of Industry Sectors, RI And Exxon Build Low Carbon Petrochemical Complex

JAKARTA - Seeing the potential for Carbon Capture Storage (CCS) in Indonesia up to 400 giga tons, Indonesia signed 2 agreements related to CCS during a visit to the US.

Two agreements related to CCS signed include the Main Amendment to the Agreement (HOA) which allows further progress on CCS Hub by PT Pertamina (Persero) with ExxonMobil; and the Memorandum of Understanding (MOU) between the Government of Indonesia and ExxonMobil.

Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif said, this agreement will not only have an impact on reducing emissions, but this agreement will also open up jobs for the community.

"The two agreements signed today signify an important step in Indonesia's journey as a leader in emission reduction. The cutting-edge technology behind CCS Hub and petrochemical complexes will not only reduce emissions and encourage low-carbon industries but also create jobs and attract investment," said Arifin, Wednesday 15 November.

The MoU between Indonesia and ExxonMobil contains an agreement to explore the evaluation and development of the latest petrochemical complex in Indonesia. This potential complex will produce high-quality polymers to meet growing Asian market demand.

This investment plan will also create jobs and business opportunities during the construction and work period during production, maintenance, and related services operations.

This investment plan will be designed as a low-emission petrochemical complex, which will take advantage of CO2 storage opportunities in its vicinity, such as CCS Hub which is being evaluated by ExxonMobil and PT Pertamina (Persero). This investment plan is the right example for the multiplier effect that CCS Hub can produce for Indonesia.

The two agreements indicate that Indonesia is preparing to become a leader in industrial decarbonization, attract foreign investment, and pave the way for the progress of downstreaming.

President Director of PT Pertamina (Persero), Nicke Widyawati, also signed the Amendment to the Principles of Agreement between PT Pertamina (Persero) and ExxonMobil.

This agreement reflects the further commitment of the two parties to advance joint evaluation of the CCS Hub in the northwestern part of Java.

The joint evaluation includes drafting plans to explore drilling campaigns, which will verify injection capacity into targeted salted aquifers.

The CCS Hub, which is being evaluated, is expected to offer significant volume geological storage, which can capture and inject CO2 from domestic and regional industries. This further realizes Indonesia's leadership in industrial decarbonization.

ExxonMobil is also considering several locations around the world, including Indonesia for a large investment in petrochemicals in the coming decade. This investment will be one of the most advanced petrochemical complexes in the world.

Senior Vice President, Exxon Mobil Corporation Jack P. Williams said ExxonMobil itself invested $117 billion in emission reduction initiatives from 2022 to 2027, including its efforts to increase CCS to support reducing emissions for third parties and its own operations.

ExxonMobil will focus on efforts to capture and store carbon in source point emissions, namely the process of capturing CO2 from industrial activity that should have been released into the atmosphere. After being captured, CO2 is injected into an underground geological formation with safe, secure, and permanent storage.