General Motors Co.'s Cruise autonomous…
Despite U.S. and EU sanctions,…
Southeast Asia’s largest economy, Indonesia, launched on Friday construction works on its first carbon capture, utilization, and storage (CCUS) project, which will be operated by energy supermajor BP.
The project, whose construction start was inaugurated by Indonesian President Joko Widodo, will have the capacity to store up to 1.8 gigatons of carbon dioxide (CO2), Indonesia’s Energy Minister Arifin Tasrif said in a statement carried by Reuters.
First injection of carbon in the CCUS project is expected in 2026, and BP is estimated to have invested $2.6 billion in the facility, according to an Indonesia official from the energy ministry who spoke to Reuters earlier this year.
In September, BP signed a Memorandum of Understanding (MoU) with Indonesian companies to jointly carry out a feasibility study to develop a CCUS value chain and joint solutions to decarbonize gas power plants in Indonesia. CCUS and carbon capture and storage (CCS) are crucial pathways to lowering carbon emissions and achieving Indonesia’s net zero ambition, BP said at the time.
Indonesia launched this week its $20-billion renewable energy plan to cut emissions and boost the share of renewables in its energy mix.
At the end of last year, Indonesia, the world’s top coal exporter and heavily reliant on coal for power generation, signed an agreement to launch a Just Energy Transition Partnership (JETP) co-led by the U.S. and Japan and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom.
Under the partnership, Indonesia will target to have renewable energy generation accounting for at least 34% of all power generation by 2030, which would roughly double the total renewables deployment over the course of this decade compared to current plans.
Indonesia needs billions of U.S. dollars in investment to shift away from coal the country doesn’t have. The wealthy international partners in the JETP have pledged half of the $20 billion investment while the other half is expected to come from large banks under the Glasgow Financial Alliance for Net Zero.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.