PLN plans to implement carbon capture technology at the Indramayu power plant. (Photo: PLN)
Indonesia's state-owned electricity company PLN revealing that the cost of carbon storage is still much higher than setting up renewable energy power plants. However, PLN remains optimistic about the long-term economic benefits.
Additionally, U.S. oil giant ExxonMobil recently announced plans to invest in building a carbon capture facility in Indonesia to prevent petrochemical plants from adding extra carbon emissions, while also capturing them.
PLN still intends to deploy carbon capture technology
According to PLN's advisory and engineering subsidiary, PLN Enjiniring, the cost of carbon capture is about $40 per tonne, compared to the carbon reduction costs for natural gas plants, which range from $12 to $20 per tonne, a difference of over 100%.
Chairani Rachmatullah, president of PLN Enjiniring, stated, "Technically, it's not an issue, But the cost will increase, and in the end, the electricity subsidy will increase, [so] we must choose the CCS installation sites carefully."
Nevertheless, PLN plans to implement carbon capture technology at several coal-fired power plants, including the Suralaya plant in Banten province, the Indramayu plant in West Java, and the Tanjung Jati B plant in Central Java.
ExxonMobil invests in Indonesia's carbon capture potential
The untapped carbon capture potential in Indonesia has also attracted foreign investment. On January 22, ExxonMobil signed a memorandum of understanding with the Indonesian government to build a carbon capture facility and a petrochemical plant, with an initial investment of around $10 billion, with total investments potentially reaching $15 billion.
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ExxonMobil is also developing green hydrogen and carbon capture technologies. (Photo: iStock)
Economic Coordinating Minister Airlangga Hartarto stated that carbon capture technology could reduce industrial carbon emissions by 90%, and the project holds significant strategic value, impacting the development of multiple industries in Indonesia. If the project moves forward, it will be the first large-scale carbon capture facility in the country, with a total capacity to store 3 million tonnes of CO2.
The project is still in the site selection phase, with the carbon capture facility potentially located in the Sunda-Asri Basin off the coast of Java, while the petrochemical plant may be situated on Java Island. Economic Coordinating Ministry officials noted that ExxonMobil’s petrochemical plant would require around 500 hectares of land, with a maximum distance of 100 kilometers from the carbon capture facility.
It is estimated that Indonesia has significant carbon capture potential, with depleted oil and gas fields capable of storing up to 8 billion tonnes of CO2, while saline aquifers could hold as much as 400 billion tonnes. Currently, the country has 15 carbon capture projects in progress, with total investments nearing $8 billion.
Source: Jakarta Post, Jakarta Globe, Antara
