Indonesia is poised to become a significant player in the carbon capture and storage (CCS) sector with a major investment from Exxon Mobil (NYSE:XOM). President Joko Widodo announced today that the energy giant plans to invest up to $15 billion in a new petrochemical project and CCS facilities. This announcement came during his meeting with Exxon Chairman Darren Woods at the APEC summit.
The commitment builds on a preliminary agreement signed earlier this week with an Exxon unit focused on polymer production. Furthermore, Exxon and Indonesian state-owned oil company Pertamina are considering a $2 billion investment in CCS facilities within the Java Sea's underground basins. This initiative is expected to capture and store up to 3 gigatons of carbon dioxide, targeting emissions from industries located nearby.
Carole Gall, president of Exxon Mobil Indonesia, highlighted the potential for industrial growth and decarbonization in Indonesia and the broader Asia Pacific region. The country is currently finalizing regulations that will enable it to store carbon from abroad in its depleted oil and gas reservoirs.
This move follows Indonesia's commitment to industrial decarbonization, as evidenced by the 'Amendment to the Principal Agreement' signed at the G20 Annual Summit in Bali in November 2022. The President Director of Pertamina, Nicke Widyawati, recently announced a collaboration with ExxonMobil for a CCS hub in the Asri and Sunda Basin of the Java Sea, emphasizing its strategic location near industrial zones which could make Indonesia a regional leader in reducing industrial carbon emissions.
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