Carbon capture, including direct air capture with carbon storage, will play a vital role in helping ASEAN cut emissions by about 565 Mt-CO2 by 2060. CCS will be crucial in reducing emissions from hard-to-abate industries and power plants. In this regard, it is necessary to assess what will drive the success of CCS deployment in the power sector in Asia. There are three factors that will determine CCS deployment in Asia: technology development, legal framework, and financing availability. Indonesia is a country where thermal power plants will continue to play an important role in the energy system in the future, and the implementation of CCS will be highly required. The Asia CCUS Network and Sumitomo Corporation have conducted a feasibility study on decarbonisation in Indonesia’s power sector for 2024. The study is conducted using a case study approach. For the case study, Sumitomo selected Units 5 and 6 of the Tanjung Jati B (TJB) coal-fired power plant in Central Java as the CO2 emission source and the Corridor gas field located in South Sumatra as the CO2 storage site. The study assumes two CO2 transport methods between TJB and Corridor: pipeline and ocean transport using liquid CO2 ships. The study aims to estimate the cost of the entire CCS system, including CO2 transportation (US$ per CO2 ton), and the impact of the CCS system on electricity prices or LCOE (US cents/kWh).

The study considered recent developments in CCS technology, regulatory frameworks, and the economics of the projects.

To share the results of the study and to promote a better understanding of the readiness for CCS deployment in the power sector, the ACN will hold a knowledge-sharing conference to discuss the findings of the CCS implementation study, using Indonesia as the case study.