International Collaboration to Build Standardization and Business Models for the CCS Industry
TANGERANG, 15 May 2024 - Indonesia is emerging as a strong candidate for the development of carbon capture storage (CCS) in the Asia region due to its recognized large CO2 storage capacity. However, to realize this potential, the government needs to collaborate with other countries experienced in carbon capture businesses.
Jodi Mahardi, Deputy Coordinator for Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs and Investment (Marves), highlighted Indonesia's significant carbon storage capacity, motivating the government to set ambitious emission reduction targets.
"We are realistic that one of the technologies capable of achieving large-scale decarbonization is the implementation of CCS," stated Jodi during Special Session 1: "Enablers for Cross-Border CO2: G2G Bilateral Cooperations" at IPA Convex 2024 on Wednesday (15/5).
According to Marves, global CCS investment values total US$6.4 billion, with US$1.2 billion from Asia. Currently, there are 15 CCS projects in study and implementation phases, including Sunda Asri, Tangguh, and Saka Kemang. CCS is also expected to create new businesses like blue hydrogen and blue ammonia. Besides its vast storage capacity, Indonesia's strategic location near emitters like Singapore, South Korea, and Japan enhances its appeal. Indonesia is also among the Asian countries with supportive regulations for CCS implementation.
Taichi Noda, Director General of the Business Strategy Department at the Japan Organization for Metals and Energy Security, outlined three key points for CCS business development: regulation, project certainty, and economics. "The Japanese government only moved forward after regulatory certainty. Last year, Jogmec and Petronas signed a cooperation agreement," said Taichi.
Keith Tan, Deputy Secretary of the Ministry of Trade and Industry, Singapore, emphasized that intergovernmental cooperation is essential to achieving cross-border CO2 injection. This cooperation should establish design standards and business models applicable across countries. "Countries like Indonesia and Malaysia are blessed with storage capacity. How can we cooperate? We study business models, G to G, and provide signals to commercial players. In Europe, CCS projects proceed with taxes and incentives. In Asia, we prepare standardization and targets. Governments must ensure a framework for businesses to implement CCS," explained Keith.
Meanwhile, Hong Sukyung, Director of the Energy Technology Division at the Ministry of Trade, Industry, and Energy, South Korea, stressed that not only the government but also businesses, both state-owned and private, must play a role in realizing CCS. For the long term, the government should initiate CCS in various educational institutions for CCS technology research and development.
"Private and government sectors must cooperate. It is important to share study information. It is also crucial to introduce CCS curricula in universities for long-term CCS industry development," stated Hong.
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