Indonesia Green Leap: Indonesia’s state energy company, Pertamina, is forging ahead with discussions alongside U.S. oil giants Exxon Mobil and Chevron Corp to invest in carbon capture facilities, concurrently exploring Exxon’s interest in a petrochemical venture in the country.
In a joint effort, Pertamina and Exxon have agreed to conduct further evaluations for $2 billion in investments dedicated to carbon capture and storage (CCS) facilities. The proposed facilities would utilize two underground basins in the Java Sea, with the potential to store at least 3 gigatonnes of carbon dioxide emitted by industries in Indonesia and the broader region, according to Pertamina’s Chief Executive, Nicke Widyawati. Jack Williams, Senior Vice President at Exxon Mobil, emphasized the potential for emission reduction and support for economic growth in Indonesia through this collaboration.
These agreements were formalized during Indonesian President Joko Widodo’s visit to Washington for discussions with U.S. President Joe Biden, preceding the APEC meetings scheduled in San Francisco this week. Jodi Mahardi, a senior government official, highlighted that these deals underscore Indonesia’s commitment, along with other stakeholders, to leverage the country’s CCS potential for advancing low-carbon industries, fostering investment, and creating job opportunities for the Indonesian population.
Indonesia, seeking to repurpose its depleted hydrocarbon reservoirs for carbon storage, is in the final stages of formulating a regulation that would facilitate storage schemes for carbon from abroad to be stored within the country. The nation boasts a storage capacity of 8 gigatonnes of carbon in depleted reservoirs, with an additional 400 gigatonnes available through the utilization of saline aquifers.
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During the same diplomatic visit, Pertamina, through its subsidiaries, entered into an agreement with Chevron to exchange information with a potential focus on developing either CCS or carbon capture utilization and storage (CCUS) sites in East Kalimantan. The shared information may encompass geological and geophysical data, maps, commercial information, and other relevant details.
Additionally, Pertamina, Chevron, and the United Arab Emirates’ Mubadala Energy signed a joint study deal aimed at exploring geothermal potential in North Sulawesi, Indonesia.
In parallel, a unit of Exxon inked an initial deal with the Coordinating Ministry for Maritime and Investment Affairs to explore investments in a petrochemical project within Indonesia, with a focus on polymer production. This multifaceted collaboration reflects a concerted effort to advance sustainable practices and foster economic development in the region.
Our Reader’s Queries
What is the green energy policy in Indonesia?
Indonesia has made a commitment to boost the use of new and renewable energy in the energy sector. By 2025, the country aims to have at least 23% of its total energy mix come from these sources, and by 2050, that number should increase to at least 31%. Additionally, Indonesia plans to decrease its reliance on oil for energy, aiming for less than 25% in 2025 and less than 20% in 2050. The country also aims to reduce its use of coal for energy mix.
What is the future of green renewable energy in Indonesia?
Indonesia aims to increase its renewable energy mix from the current 10% to 23% by 2025, and ultimately achieve net zero emissions by 2060. This ambitious target is a significant step towards a more sustainable future, and demonstrates Indonesia’s commitment to reducing its carbon footprint. By prioritizing renewable energy sources, Indonesia is taking a proactive approach to combatting climate change and promoting a cleaner, greener future for generations to come.
What is renewable energy and examples?
Renewable energy is derived from sources that are abundant and won’t deplete over time. These sources are natural and self-sustaining, with minimal or no carbon footprint. Wind power, solar power, bioenergy (organic matter burned as fuel), and hydroelectricity, including tidal energy, are some examples of renewable energy sources.