Carbon Capture Storage Is A New Business Opportunity In Indonesia

Carbon illustration (Photo: antara)

JAKARTA - There are several factors that make Indonesia have a great opportunity to develop a carbon capture storage (CCS) project. In addition, it also makes it a new business opportunity in the future.

Based on data from the Ministry of Energy and Mineral Resources (ESDM), the potential for carbon storage in former reservoirs in oil and gas fields in Indonesia is estimated at 577 giga tons.

Executive Director of the Indonesia CCS Center Belladonna Troxylon Maulianda explained that the first factor, according to him, was related to regulations.

In a statement received in Jakarta, Thursday, said that the Indonesian government is currently very aggressive in issuing various regulations to support the acceleration of CCS implementation, especially since Indonesia has the same potential as Australia. Currently, Indonesia already has 15 CCS projects under development.

"This makes Indonesia have a bigger business opportunity and can become a CCS hub leader in the regional area," he said, quoting Antara.

Billionaire said CCS technology is nothing new for oil and gas companies. This technology has been implemented by oil and gas companies since 40 years ago.

"The technology is actually a mature. Currently, we are waiting for the cost to drop and indeed now it has started to decline," said Belladonna.

In addition, he views Indonesia as the country that is most ready to implement CCS compared to countries in other Asian regions.

"Indonesia is considered the fastest in the development of CCS compared to other countries, apart from having potential, support from the government through regulations is also expected to accelerate the implementation of CCS," he said.

In addition to the advantages in terms of geography and regulation, he said he was optimistic that Indonesia would become a leader in CCS' business in the regional area. The reason is, Indonesia is the first country to implement a CCS cross border.

Meanwhile, Director of Engineering and the Oil and Gas Environment of the Ministry of Energy and Mineral Resources Noor Arifin Muhammad said the position of the Indonesian Government was very clear in supporting the implementation of CCS to provide cleaner energy and at the same time reduce carbon emissions.

This is shown by the incentives given to business actors who are willing to apply CCS technology.

"The Minister of Energy and Mineral Resources (Arifin Tasrif) has made a decision that CCS costs can be included in the cost recoverer," he said.

To note, the Ministry of Energy and Mineral Resources has just issued a Potential National Carbon Storage figure in 2024 of 572 billion tons of CO2 in saline aquifers and 4.85 billion tons of CO2 in depleted oil and gas reservoirs. This enormous storage potential is believed to be able to significantly support the long-term emission reduction target.

Furthermore, Noor Arifin said that the Ministry of Energy and Mineral Resources is also preparing a Draft Regulation of the Minister of Energy and Mineral Resources regarding the implementation of CCS in the carbon storage permit area.

"It is targeted that the candy will be issued in July," he said.

Meanwhile, IPA Executive Director Marjolijn Wajong welcomed the government's very cooperative attitude in inviting upstream oil and gas business actors to discuss the development of the CCS and CCUS ecosystem for a long time.

"We follow the stage of the government progress. We know that there is a Presidential Decree No. 14/2024. This is critical because regulations must exist. Investors will still see whether this is a business opportunity or not. Indeed, there are players in the oil and gas sector who specialize in their business as CCS hubs. But this is indeed a must for them because of their obligation to reduce emissions. Now it is not only for their own needs, but can also receive emissions from outside the oil and gas. So, this could be a new business," he said.