ExxonMobil (NYSE:XOM) and Pertamina will together evaluate large-scale carbon capture and storage (CCS) opportunities in Indonesia.
The pair said yesterday that they will identify potential subsurface carbon dioxide (CO2) storage sites and study the feasibility of transporting CO2 in Southeast Asia after signing an agreement near Glasgow, Scotland, where world leaders have gathered to discuss climate policies during COP 26 this week.
Last month 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.
“We are evaluating large-scale carbon capture and storage projects that have the potential to make the greatest impact in the highest-emitting sectors around the world, and there are opportunities in Indonesia and throughout Southeast Asia,” said ExxonMobil yesterday.
By jointly examining subsurface data, the companies expect to identify geologic formations deep underground that could be suitable to safely store CO2, and the potential for safe, commercially viable utilisation of CO2.
The Memorandum of Understanding strengthens a decades-long strategic partnership between ExxonMobil and national oil company Pertamina, and has the objective of advancing Indonesia’s net-zero ambitions, claimed ExxonMobil.
The International Energy Agency (IEA) projects that carbon capture and storage could mitigate up to 15% of global emissions by 2040, and the UN Intergovernmental Panel on Climate Change estimates global decarbonisation efforts could be twice as costly without its wide-scale deployment.
ExxonMobil, which set up a low-carbon solutions division in February, is focusing on building a carbon capture and storage (CCS) business in Asia. Significantly, ExxonMobil believes there is over 300 billion tonnes of storage capacity in Southeast Asia alone.
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