(CTN News) – It has been announced that Indonesia and ExxonMobil have signed two memorandums of understanding (MoUs) aimed at developing carbon capture and storage (CCS) projects in the country.
There was a bilateral meeting between the U.S. and Indonesia on Monday, November 13, which resulted in the signing of the agreement before the Asia-Pacific Economic Cooperation (APEC) meeting on Wednesday in San Francisco, which was held just days before the APEC meeting.
There is a $2 billion budget for the CCS projects, and they are part of a broader $15 billion investment agreement between ExxonMobil and Indonesia whereby a large petrochemical hub will be developed to produce polymers in order to meet the large demand for polymers in the region.
As the hub would take advantage of the reported 3 gigaton storage potential of CO2 in the area, it has been in the works for several years with ExxonMobil and Indonesia’s state-owned oil company Pertamina progressing through the various initial stages of the project together.
There have been a number of oil majors involved in the development of the country’s CCS infrastructure, and the country has been working with them to develop its CCS infrastructure, right now there are 15 CCS and CCUS projects in various stages of development.
A total investment value of nearly $8 billion has been estimated for the Tangguh CCUS project, which is being developed by the British oil giant BP.
Furthermore, Indonesia is exploring the possibility of becoming a hub for capturing CO2 from across the entire region to enhance biofuel production in the country, something that would enhance foreign direct investment in the country.
To meet the growing demand for energy, the government has started working on ways to allow cross-border transport and storage of CO2 in order to meet the growing demand for energy in the country.
ExxonMobil Chemicals estimates that Southeast Asia has a potential storage capacity of 300 gigatons across its continental shelf, based on ExxonMobil information.