Feasibility Study on a CCS Pilot Project in Indonesia

Editedby Shigeru KimuraYuika IwabuchiKuniyuki NishimuraTetsuya NomotoRyotaro SaitoKikuko Shinchi Feasibility Study on a CCS Pilot Project in Indonesia Economic Research Institute for ASEAN and East Asia (ERIA)Sentral Senayan II 6thFloorJalan Asia Afrika No. 8, Gelora Bung KarnoSenayan, Jakarta Pusat 12710Indonesia © Economic Research Institute for ASEAN and East Asia, 2025 ERIA Research Project Report FY2024 No. 34 Published in February 2025 All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted in any form by any means electronic or mechanicalwithout prior written notice to and permission from ERIA. The findings, interpretations, conclusions, and views expressed in their respectivechapters are entirely those of the author/s and do not reflect the views and policiesof the Economic Research Institute for ASEAN and East Asia, its Governing Board,Academic Advisory Council or the institutions and governments they represent. Anyerror in content or citation in the respective chapters is the sole responsibility of theauthors. Materialin this publication may be freely quoted or reprinted with properacknowledgement. Preface The Asia CCUS Network (ACN) was officially established in 2021, with ERIA servingas its secretariat. As a platform for all stakeholders in carbon capture, utilisation,and storage (CCUS), the ACN is committed to advancing its mission through threekey initiatives: 1.Knowledge Sharing: Hosting regular online conferences featuring experts onthe latest and most relevant CCS/CCUS topics in Asia and globally.2.Research Studies: Focusing on carbon capture, transportation, and storage,with a particular emphasis on addressing cost-related challenges.3.Capacity Building: Conducting training programmes to estimate carbon storagecapacity in collaboration with organisations like the United States GeologicalSurvey (USGS) and the Japan Organization for Metals and Energy Security(JOGMEC). The ACN is guided by a clear vision and roadmap, which includes the initiation of aCCS pilot project after 2025 and the application of CCUS technology to contribute todecarbonisation in Asia from 2030 onwards. As part of this effort, ERIA hasundertaken a feasibility study to identify a suitable CCS pilot project site within theAssociation of Southeast Asian Nations (ASEAN) region. The study assesses CO2emissions from coal power plants, evaluates CCS costs (including CO2capture,transport, and storage), and examines the regulatory framework and necessaryincentives to support such projects. Existing reports and research highlight significant potential for CO2storage in ASEANcountries, particularly Indonesia and Malaysia. Injecting CO2into deep saline aquifersin these countries could potentially accommodate CO2from outside ASEAN, such asfrom Japan and the Republic of Korea, by leveraging cost-reduction mechanisms likethe Joint Crediting Mechanism. To facilitate this, establishing a CCS value chain ornetwork across Asia will be essential. This will require coordination on cross-borderCO2transportation, regional regulations, and robust measurement, reporting, andverification systems. Thisreport aims to support the development of appropriate CCS businessregulationsfor ASEAN and the broader East Asia Summit region,enablingsustainable and collaborative decarbonisation efforts. Shigeru Kimura Senior Policy Fellow on Energy AffairsEconomic Research Institute for ASEAN and East Asia Acknowledgements This report is the result of discussions and information exchanges amongst expertsfrom the Mitsubishi Research Institute and the ERIA Asia CCUS Network Secretariat,including Mr Shigeru Kimura, Senior Policy Fellow on Energy Affairs, and Dr I. GustiSuarnaya Sidemen, Expert on CCS/CCUS. The report also draws extensively from theFY2021 ERIA Study on the Potential for Promoting Carbon Dioxide Capture, Utilisation,and Storage in ASEAN Countries. The project members express their gratitude for the support provided by ERIA anditsprofessional team.Their insights,particularly on geological resources inIndonesia, have been invaluable to the development of this report. Kikuko Shinchi (Ms.) Research DirectorEnvironmental Innovation GroupEnergy and Sustainability DivisionMitsubishi Research Institute, Inc. List of ProjectMembers Shigeru KIMURA, Special Adviser to the President on Energy Affairs, EconomicResearch Institute for ASEAN and East Asia (ERIA) Kikuko SHINCHI, Project Leader, Research Director, Mitsubishi Research Institute(MRI) Testuya NOMOTO, Senior Researcher, MRI Kuniyuki NISHIMURA, Senior Researcher, MRI Yuika IWABUCHI, Researcher, MRI Ryotaro SAITO, Researcher, MRI Table of Contents Prefaceiii Acknowledgementsiv List of Project Membersvi List of Figuresviii List of Tablesx List of Abbreviations and Acronymsxiii Executive Summaryxvi Chapter 1Mapping and Estimation of CO2Emissions from CoalPower Plants in ASEAN1 Chapter 2CCS Cost Estimation Based on th