Indonesia is making significant strides in its climate action initiatives, particularly through the development of carbon capture, utilization, and storage (CCUS) facilities. A recent article published in ‘Energy Geoscience’ provides a comprehensive overview of the nation’s CCUS potential, focusing on CO2 emission profiles, storage capabilities, active projects, and the economic viability of these efforts. With ambitious targets of reducing carbon emissions by 29% by 2030 and achieving net zero emissions by 2050, Indonesia is positioning itself as a leader in the global energy transition.
Romal Ramadhan, the lead author of the study from the Encovy Institute in Jakarta and the Jackson School of Geosciences at The University of Texas at Austin, emphasizes the urgency of adopting innovative technologies. “The implementation of CCS technology is not just a necessity for emission reductions; it represents a transformative opportunity for Indonesia’s energy sector,” Ramadhan states. The country is set to launch 15 CCUS projects by 2026, which will leverage existing oil and gas infrastructure to facilitate a smoother transition toward cleaner energy practices.
Among the highlighted projects are Tangguh CO2-EGR and Gundih CCS, which serve as pilot initiatives that could scale up to larger operations. The research indicates that natural gas processing plants producing high-purity CO2 are the most economically viable options for CCUS, showcasing a clear path for commercial investment in this technology. Ramadhan notes, “Smaller-scale projects can act as a proving ground, demonstrating the feasibility and benefits of larger CCUS implementations.”
Regulatory frameworks are evolving to support these initiatives, with recent developments such as the Ministry of Energy and Mineral Resources (MEMR) regulations from February 2023 and Presidential Order No. 14/2024 aimed at fostering collaboration between local and international stakeholders. However, despite the progress, the study identifies critical gaps in long-term performance data and risk assessments, particularly for industries like iron, steel, cement, and chemicals.
The article suggests that future research should focus on the environmental implications of CCUS, its economic viability across various sectors, and the integration of renewable energy sources. Ramadhan asserts, “Collaborative efforts among government, business, and academia will be essential to successfully develop and deploy CCUS technology in alignment with Indonesia’s climate goals.”
As Indonesia embarks on this ambitious journey, the commercial implications for the energy sector are profound. The successful implementation of CCUS could not only help meet national climate targets but also position Indonesia as a competitive player in the global energy market. With the right policies and investments, the country could emerge as a hub for innovative energy solutions, paving the way for a sustainable future.
For more insights on this research, visit the Encovy Institute.