Singapore is making history by leading the way in signing a Memorandum of Understanding (MoU) with Indonesia to explore cross-border collaboration on carbon capture and storage (CCS). This initiative follows Indonesia's enactment of new legislation to enable such cooperation.
This cooperation marks a milestone in the region. Despite similar announcements from South Korea and Japan, there have been no cross-border CCS projects in Asia.
Singapore and Indonesia are preparing to establish a joint team to formulate a legally binding bilateral agreement on cross-border transport and CO2 capture. Jodi Mahardi, Indonesia's deputy minister for energy coordination, said that this overarching agreement is an important step towards sustainable development and environmental protection, as reported by Reuters.
Despite criticism from some quarters about the cost and lack of full testing, Indonesia is ambitiously positioning itself as a leading center for CO2 storage in the region. The government claims that the country has more than 400 gigatons of storage capacity, including abandoned oil and gas reservoirs and salt aquifers.
In addition, it is noted that the country is currently pursuing 15 CCS projects involving carbon capture, storage, and utilization steps, with a total investment approaching the staggering sum of $8 billion.
As an added detail, Indonesia issued a presidential regulation last month allowing CCS operators to use up to 30% of their storage capacity for imported CO2. This move is consistent with Indonesia's view of the potential development of the upstream natural gas sector and CCS as critical components of the global transition to cleaner energy sources.
Meanwhile, in its efforts to achieve net-zero emissions by 2050, Singapore is leading the way in exploring low-carbon technologies such as hydrogen and CCS as part of its climate change mitigation strategy. As outlined in the ambitious Sustainable Jurong Island Plan announced in November 2021, Singapore aims to capture 2 million metric tons per annum (mtpa) of carbon dioxide by 2030, rising to 6 mtpa by 2050.
