Carbon storage deal to deliver huge capacity boost

Energy giant ExxonMobil and Indonesia’s national energy company, Pertamina, have signed a heads of agreement at the G20 Summit in Bali to further progress their previously announced regional carbon capture and storage hub for domestic and international CO2.

The agreement delivers the next stage of the CCS project with a geologic storage potential of up to 3 billion metric tons of CO2. It builds upon a joint study and memorandum of understanding that was signed at COP26 in Glasgow, to assess carbon capture and storage technologies, low-carbon hydrogen and geologic data. The agreement defines next steps for the project including concept-select, pre-Front End Engineering Design, and a subsurface work program.

“This agreement supports Indonesia’s net-zero ambition and its goal to become a carbon capture and storage leader in the region,” said Dan Ammann, president, ExxonMobil Low Carbon Solutions. “By providing a large-scale storage solution for hard-to-decarbonize sectors, our companies will support Indonesia’s growing economy through low-carbon investments, creating job opportunities and adding revenues for the country.”

The Indonesian government is working to develop supportive CCS regulations and initiating discussions with other governments in the region. “This milestone is a solid foundation for Indonesia to systematically work toward our net-zero target by 2060 or sooner,” said Indonesia’s coordinating minister for Maritime and Investment Affairs H.E. Luhut B. Pandjaitan. “Indonesia is growing, and it is imperative for us to address our carbon footprints for our future generations.”

Exxon added: “ExxonMobil Low Carbon Solutions is working to bring lower-emission technologies to market, making them accessible to hard-to-decarbonise industries, including its recent agreement with a leading global manufacturer of nitrogen and hydrogen products in Louisiana, United States. It is focusing its carbon capture and storage efforts on point-source emissions, the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere. Once captured, the CO2 is injected into deep, underground geologic formations for safe, secure and permanent storage.”

“Carbon capture and storage is a safe, proven technology that can enable some of the highest-emitting sectors to meaningfully reduce their emissions,” The company added. “These industries include manufacturing, power generation, refining, petrochemical, steel, and cement operations. With effective government policies in place, broad deployment of commercial-scale carbon capture and storage projects could create a new industry, resulting in job creation and economic growth.

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