Indonesia is finalizing a regulation that would expand the scope of carbon capture and storage schemes to encompass a broader range of industries, while also permitting the storage of greenhouse gases from foreign sources within the country, Reuters reported Tuesday, citing a government official.
This move would represent a significant shift from Indonesia’s existing regulatory framework, which primarily focuses on carbon capture and storage (CCS) and carbon capture, storage, and utilization (CCUS) in the oil and gas sector.
The Indonesian government’s vision is to position the country as a carbon storage hub, capitalizing on its depleted hydrocarbon reservoirs and saline aquifers, according to Tutuka Ariadji, a senior official at the Ministry of Energy.
“This regulation will have a wider scope and make it possible for cross-border storage, so carbon from abroad can be stored here through certain mechanisms,” he was quoted as saying by Reuters.
Under the new rules, businesses beyond the oil and gas sector, including those in cement and metal industries, will be granted the opportunity to store the carbon emissions they generate in CCS and CCUS facilities.
Indonesia boasts a significant carbon storage capacity, with approximately 8 gigatons available in depleted reservoirs, but it is expected to utilize just half of it, Tutuka said.
An additional 400 gigatons of storage potential would be available if the country leverages its saline aquifers, he added.
Tutuka also highlighted that there are currently 15 CCS and CCUS projects in various stages of development, with a collective investment value of nearly $8 billion, including the Tangguh CCUS project by British major BP (LON: BP).