In Indonesia ExxonMobil and Pertamina sign a memorandum of understanding to advance carbon capture and storage (CCS).
A Memorandum of Understanding
In Indonesia, during the G20 in Bali, ExxonMobil and Pertarmina announce an agreement to advance the regional CCS project. This Memorandum of Understanding defines the next steps of the project. These include concept selection, preliminary engineering design and a program of work.
The MOU builds on a previous joint study and MOU. It aims to evaluate CCS technologies, low-carbon hydrogen and geological data. In addition, studies indicate that the potential for geological storage is as high as 3 billion tons of CO2.
CCS technology can enable the most emitting sectors to significantly reduce their emissions. These include manufacturing, refining, petrochemical and steel industries. Commercial-scale CCS projects, supported by effective government policies, could create a new industry.
A political will
ExxonMobil and Pertamina’s CCS agreement supports Indonesia’s net zero ambition. For example, Dan Ammann, president of ExxonMobil Low Carbon Solutions, states:
“This agreement supports Indonesia’s net zero ambition and its goal to become a leader in carbon capture and storage in the region. By providing a large-scale storage solution for hard-to-decarbonize sectors, our companies will support Indonesia’s growing economy through low-carbon investments, creating job opportunities and adding revenue for the country.”
In addition, the Indonesian government is working to develop CCS-friendly regulations.
Indonesia is also initiating discussions with other governments in the region. The country seeks to achieve a net zero target by 2060 or sooner. Thus, the Coordinating Minister of Maritime Affairs and Investment of Indonesia, Luhut B. Pandjaitan, states:
“Indonesia is growing rapidly and it is imperative for us to address our carbon footprint for our future generations.”
ExxonMobil Low Carbon Solutions is bringing low-emission technologies to market, making them accessible to hard-to-decarbonize industries. It focuses its carbon capture and storage efforts on point source emissions. In addition, the company entered into an agreement with a manufacturer of nitrogen and hydrogen products in Louisiana, USA.
