US supermajor ExxonMobil and Indonesia’s national oil company Pertamina are firming up plans for a carbon capture and storage (CCS) project offshore Java, Indonesia, that has the geological potential to store up to 3 billion tonnes of carbon dioxide.
The heads of agreement defines the next steps for the proposed project including concept selection, pre-front end engineering and design, and a subsurface work programme. The offshore CCS hub will be used to store domestic and overseas, particularly regional, volumes of CO2.
The HOA, which was signed at the G20 Summit in Bali, builds on the joint study and memorandum of understanding signed a year ago at COP 26 to assess CCS technologies, low-carbon hydrogen and geologic data. ExxonMobil noted that this international collaboration supports Indonesia’s 2060 net-zero ambition.
The initial work under the MoU is understood to have included the evaluation of depleted reservoirs on Pertamina’s working areas in Indonesia and the potential for hubs and cluster schemes that could offer both storage and significant volumes of CO2.
“This agreement supports Indonesia’s net-zero ambition and its goal to become a carbon capture and storage leader in the region,” ExxonMobil low-carbon solutions president Dan Ammann said.
“By providing a large-scale storage solution for hard-to-decarbonise sectors, our companies will support Indonesia’s growing economy through low-carbon investments, creating job opportunities and adding revenues for the country.”
Meanwhile, on Saturday the Indonesian government confirmed it is now working to develop supportive CCS regulations and is initiating discussions with other governments in the region. Upstream reported in July last year that the Jakarta administration was drafting regulations related to CCS and carbon capture, utilisation and storage for the oil and gas industry, with the aim of not only supporting the development of such technologies but also addressing safety and the economic aspects.
“This milestone [the HOA] is a solid foundation for Indonesia to systematically work towards our net-zero target by 2060 or sooner,” Indonesia Co-ordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said.
“Indonesia is growing, and it is imperative for us to address our carbon footprints for our future generations.”
ExxonMobil is focusing its global CCS efforts on point-source emissions, the process of capturing CO2 from industrial operations that would otherwise be released into the atmosphere. Once captured, the CO2 is injected into deep underground geologic formations for safe, secure and permanent storage.