Indonesia, Singapore sign outline pledge on carbon storage

JAKARTA - Singapore has become the first country to sign a letter of intent with Indonesia on cross-border collaboration on capture and storage of carbon dioxide (CCS) following a new Indonesian law to allow it, the governments said on Feb 15.

Indonesia, which sees potential to

develop its upstream natural gas sector and CCS

as part of the global transition to greener fuel, in January issued a presidential regulation allowing CCS operators to allocate 30 per cent of their storage capacity for imported carbon dioxide (CO2).

Singapore and Indonesia will form a working group to seek a legally binding bilateral agreement on the cross-border transport and storage of CO2 between the neighbouring countries, a joint statement on Feb 15 said.

The outline deal marked “a significant milestone in our efforts towards sustainable development and environmental stewardship”, Mr Jodi Mahardi, Indonesia’s deputy coordinating minister overseeing energy, told Reuters.

Critics say CCS is an expensive and unproven technology, but Indonesia is keen to become a hub for CO2 storage in the region. It says the archipelago has over 400 gigatonnes of storage capacity in the form of depleted oil and gas reservoirs and saline aquifers.

It also says the country has 15 CCS and carbon capture, storage and utilisation projects in various stages of preparation with a combined investment of nearly US$8 billion (S$10.8 billion). REUTERS