ExxonMobil and Pertamina launch CCS in Indonesia


US supermajor ExxonMobil and Indonesian national oil company Pertamina are to assess the potential for large-scale deployment of low-carbon technologies in Indonesia.

The two actors signed a memorandum of understanding to assess carbon capture and storage (CCS) opportunities in Indonesia.

As part of the MoU, which was signed near the COP26 climate change summit in Glasgow on Tuesday, companies will identify potential CO below the surface2 storage locations and examine the feasibility of transporting CO2 in Southeast Asia.

The companies also agreed to assess the potential of technologies such as carbon capture, use and storage, and low carbon hydrogen. By jointly examining the subsurface data, companies expect to identify deep underground geological formations that may be suitable for safely storing CO.2, and the potential for safe and commercially viable use of CO2.

CCS technology will be applied by the application of CO2 injection into the basement, Pertamina said, adding that the technology needs to be applied to depleted reservoirs in its work areas, while also assessing the potential of hubs and cluster systems.

Dwi Soetjipto, the head of Indonesian upstream regulator SKK Migas, told reporters late last month that ExxonMobil was planning a CCS project on its giant asset producer Cepu onshore Java; while the Asian Development Bank has identified the nearby Sukowati and Gundih fields as locations for such pilot projects.

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However, the US operator is not known to have ever confirmed that Cepu is officially on its CCS results list.

“We are evaluating large-scale carbon capture and storage projects that have the potential to have the greatest impact in the highest emitting sectors around the world, and there are opportunities in Indonesia and across Southeast Asia. Southeast, ”said Joe Blommaert, president of ExxonMobil. Low carbon solutions.

“With well-designed policies and collaboration with industry, we can move forward with technologies that are reliable, secure and ready for large-scale deployment that can help governments achieve breakthrough emissions reductions.”

The collaboration, which aims to advance Indonesia’s net zero ambitions, is expected to include research and development studies with universities.

“The application of CCUS technology is part of Pertamina’s energy transition program towards clean energy. This low carbon technology will support the sustainability of our business going forward, ”said Nicke Widyawati, President and CEO of Pertamina.

The application of this technology can also be applied to the production of blue hydrogen in combination with CCS technology, added Pertamina.

The Gundih project is one of Pertamina’s declared initiatives to reduce carbon emissions and has the potential to reduce emissions by 300,000 tonnes per year of CO2 – or 3 million tonnes over a decade – while also having the potential to stimulate gas production on the onshore field.

The stored CO2 will be declared in the form of carbon credits which will be shared between the governments of Indonesia and Japan.

Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan said the collaboration announced on Tuesday would strengthen the lasting strategic partnership between Pertamina and ExxonMobil, which has existed since the 1970s in the upstream and downstream sectors.

“The opportunities that the two companies are evaluating in Indonesia, coupled with good government policies and industrial collaboration, will have the potential to have the greatest impact in the most emitting sectors, not only in Indonesia but also in Southeast Asia. Is, ”he said. noted.

Upstream reported on July 29 that the Indonesian government is drafting CCS and CCUS regulations for the oil and gas industry, with the aim of not only supporting the development of these technologies, but also addressing safety and economics. .

ExxonMobil’s Low Carbon Solutions business aims to commercialize low-emission technologies. It initially focuses its CCS efforts on point emissions, the process of capturing CO2 industrial activity that would otherwise be released into the atmosphere and inject it into deep underground geological formations for safe, secure and permanent storage.

Other CCS locations on its radar include LaBarge and Houston in the United States, Rotterdam in the Netherlands, and Normandy in France.

The company is also pursuing strategic investments in biofuels and hydrogen to bring these low-emission energy technologies to the scale of hard-to-decarbonize sectors of the global economy.

The American heavyweight now has a stake of around 20% in global CO2 capture capacity and captured approximately 40% of all anthropogenic CO captured2 in the world.

The International Energy Agency predicts that CCS could mitigate up to 15% of global emissions by 2040, while the IPCC estimates that global decarbonization efforts could be twice as expensive without its large-scale deployment .

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