RI Targets Double Profits From Manufacturing Industry Carbon Storage

Head of the Standardization and Industrial Services Policy Agency of the Ministry of Industry, Doddy Rahadi. (Photo: Doc. ANTARA)

JAKARTA - Head of the Standardization and Industrial Services Policy Agency of the Ministry of Industry, Doddy Rahadi, said that Indonesia is aiming for multiple profit opportunities from the application of carbon capture and storage technology (CSS) to the manufacturing industry currently being launched by the government.

According to Doddy, the first advantage is to increase public health because air will be healthier after the carbon greenhouse emissions can be reduced. The second advantage is that obtaining income due to the emission that can be captured can also be sold to the global carbon market.

"CCS technology is becoming a global trend and demand to reduce carbon emissions from the manufacturing industry, now Indonesia is heading there," said Doddy, quoted from ANTARA, Wednesday, October 11.

This statement was conveyed by Doddy at the Indonesia Knows the Knowledge Forum XII Eco Creation Empower Sustainability Treasuret partnership and digitalization with Bank Central Asia (BCA) at the Ritz Carlton Hotel.

Doddy explained that CCS technology is currently a global trend to reduce carbon emissions from the manufacturing industry, including the steel industry, which mostly still uses coal as an energy source.

The implementation of CCS is carried out using hydrogen as clean fuel, and does not produce carbon emissions such as coal raw materials that are still used by the manufacturing industry, including Indonesia.

He gave an example, the United Arab Emirates (UAE) is one of the countries running the CCS project at the Al Masaood Steel steel factory and has succeeded in capturing and storing 1.8 million tons of carbon dioxide (CO2) emissions by 2022.

Reflecting on that, according to him, the CSS project in Indonesia will also be very potential. One of them is if it is applied to a steel factory in Cilegon, Banten which has a production capacity of 3 million tons of steel per year and produces CO2 emissions estimated at 4.5 million tons per year.

"The CO2 emissions that can be captured and stored by the Cilegon steel factory are around 1.35 million tons per year, the value of this CO2 emissions can be sold depending on the price of carbon in the global market," he said.

It is known, the current world price of carbon is around 60 US dollars per ton. Thus, he said, steel mills in Cilegon can generate around 81 million US Dollars per year from the selling value of CO2 emissions.

"From there, it can be seen how CSS can increase the profitability of Indonesian steel factories," he said.

Doddy also admitted that he was optimistic that the global market would look at Indonesia's industrial carbon sales, as one of the world's manufacturing product export suppliers.

The Ministry of Industry noted that the export value of Indonesia's manufacturing industry in the first quarter of 2023 reached US$43.2 billion, an increase of 16.37 percent compared to the same period the previous year.

This increase was driven by an increase in demand for Indonesian manufactured products from various countries, especially the United States, China, and Japan.

"We have begun to introduce, the target is that Indonesia will stabilize in implementing the energy transition by implementing this carbon capture and storage technology (CCS) by 2030," he said.