ExxonMobil (NYSE:XOM) and Pertamina, the state-owned energy company of Indonesia, have signed a joint study agreement to assess the potential for large-scale implementation of lower-emissions technologies, including carbon capture and storage (CCS), as well as hydrogen production.
The agreement builds on efforts to advance carbon capture and storage (CCS) in Indonesia that have taken place since the companies signed a memorandum of understanding at COP 26 in Glasgow, Scotland. The expanded agreement will support Indonesia’s net-zero ambitions and builds on a decades-long strategic partnership between ExxonMobil and Pertamina.
Last October Energy Voice reported that ExxonMobil is planning a carbon capture utilisation and storage (CCUS) project at its giant Cepu block in East Java, Indonesia. ExxonMobil operates the Cepu block with a 45% interest. Pertamina is also a major shareholder with 45% interest.
ExxonMobil, which set up a low-carbon solutions division in February 2021, is focusing on building a (CCS) business in Asia. Significantly, ExxonMobil believes there is over 300 billion tonnes of storage capacity in Southeast Asia alone.
The latest joint study agreement was signed on 13 May by Pertamina President Director and Chief Executive Officer Nicke Widyawati and Irtiza Sayyed, president, ExxonMobil Indonesia. The signing was witnessed by Indonesia’s Coordinating Minister for Maritime and Investment Affairs Pak Luhut and Jack Williams, senior vice president, Exxon Mobil Corporation.
“This is another step forward for both companies, and it positions Indonesia to play a leading role in supporting the reduction of emissions from decarbonise sectors,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “Expansion of carbon capture and storage in Southeast Asia would support a lower carbon future. Governments, the private sector and communities will need to work hand-in-hand to make this a reality.”
Last week, Pertamina and Chevron (NYSE:CVX) also announced that they will together explore potential business opportunities in geothermal, carbon capture utilisation and storage (CCUS), as well as hydrogen, in Indonesia, after signing an agreement in Washington.
ExxonMobil Low Carbon Solutions business is working to commercialise lower-emission technologies and support global emission-reduction efforts. It is initially 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, and injecting it into deep underground geologic formations for safe, secure and permanent storage.
ExxonMobil said CCS is a proven technology that can enable some of the highest-emitting sectors to reduce their emissions, such as manufacturing, power generation, refining, petrochemical, steel and cement industries. Commercial-scale and broad deployment of CCS could create a new industry, resulting in job creation and economic growth, said the company.
The business is also pursuing strategic investments in biofuels and hydrogen to bring those lower-emissions energy technologies to scale for decarbonise sectors of the global economy, by leveraging the skills, knowledge and scale of ExxonMobil. The company has more than 30 years of experience capturing CO₂ and has cumulatively captured more human-made CO₂ than any other company, it said. It has an equity share of about one-fifth of the world’s CCS capacity at about 9 million metric tons per year.
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