Indonesia's Pertamina expands carbon capture and storage projects - Energy

Indonesia’s Pertamina plans to expand its carbon capture and storage projects to reduce carbon emissions from its expansion in oil and gas exploration in the Southeast Asian country.

Carbon capture and storage technology captures carbon emissions and buries them underground, a technology that can play an important role in reducing greenhouse gases in the atmosphere, but it is not yet widespread.

The Indonesian state energy company is studying a project to capture carbon at its Balikpapan refinery, in cooperation with a local subsidiary of French gas company Air Liquide.

Carbon capture and storage

The two companies signed a joint agreement to capture carbon emissions from the hydrogen production facility in Balikpapan and store them in the Cotai Basin, off East Kalimantan.

The Indonesian energy company said some of the emissions would be converted into products, such as methanol, which can be used to make low-carbon fuels.

Indonesian Pertamina
Pertamina oil refinery in Java, Indonesia

Oil and gas companies sometimes resort to CCS, either to increase their profits by setting up hydrogen production plants, or to extend the life of their fossil fuel facilities.

Indonesia, which relies heavily on fossil fuels for energy, plans to cut emissions by 29 percent by 2030 and achieve carbon neutrality in the country by 2060.

The Asian country aims to double the contribution of renewable energy sources in its electricity generation mix to 23%, by 2025.

Carbon neutrality in Indonesia’s Pertamina

Indonesian company Pertamina aims to reduce greenhouse gas emissions by 30% and increase the renewable energy mix to 17.7% by 2030, according to Reuters.

“We seek to exploit carbon capture and storage technology to reduce emissions from our expansions in oil and gas production,” the company’s CEO, Nikki Widyawati, said in a statement.

Carbon capture and storage could reduce the emissions needed to achieve carbon neutrality by 20% by mid-century.

The Indonesian oil and gas company struck a deal with US energy company Chevron, to explore low-carbon opportunities in Indonesia.

Indonesian Pertamina
Pertamnia petrol station in Indonesia

hydrogen production

The current global capacity for carbon capture and storage is 40 million tons per year, of which 70% is used in the oil and gas production sector.

Indonesia’s Pertamina signed an agreement with ExxonMobil to assess the potential for carbon capture, use and storage, and hydrogen production in Pertamina’s 3 oil and gas fields in West Java and East Kalimantan.

In Southeast Asia, 75% of CCS projects are used to process gas during production.

According to a report by the Global Carbon Capture and Storage Institute, the number of CCS projects doubled to 135 in the first 9 months of 2021.

During the past year, the operational capacity of carbon capture and storage projects reached 61 million tons worldwide.

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