Indonesia Launches Construction Of Pioneering Carbon Storage Project
Indonesia marked a significant milestone on Friday as President Joko Widodo launched the construction of the country’s first carbon capture, utilization, and storage (CCUS) project in West Papua province.
This pioneering project, operated by global energy major BP (LON: BP), has the potential to sequester up to 1.8 gigatons of carbon dioxide (CO2), according to a statement by Energy Minister Arifin Tasrif, as cited by Reuters.
In September, an energy ministry official revealed that BP would invest $2.6 billion in this initiative, with the first carbon injection scheduled for 2026.
The British major recently completed the Tangguh Train 3 liquefied natural gas (LNG) project in West Papua, worth a total of $4.83 billion.
Indonesia boasts substantial carbon storage potential, with an estimated capacity of 8 gigatons in depleted oil and gas reservoirs and an additional 400 gigatons in saline aquifers, and is actively pursuing CCUS and carbon capture and storage (CCS).
Currently, the country has 15 CCS and CCUS projects in various stages of development, collectively representing a significant investment of nearly $8 billion, including BP’s pioneering endeavor in West Papua.
However, the International Energy Agency (IEA) cautioned in a recent report that while the oil and gas industry possesses the capability to scale up such technologies in a move to achieve net-zero emissions by 2050, their efficacy in combatting global warming hinges on parallel reductions in oil and gas production.
During his visit to West Papua, Jokowi, as President Joko Widodo is known, also launched the construction of a fertilizer plant in Fakfak.
This facility is designed to yield 1.15 million metric tons of urea fertilizer and 825,000 metric tons of ammonia fertilizer, contributing to Indonesia’s broader efforts toward sustainable development.