Feasibility Study on a CCS Pilot Project in Indonesia
Date:
21 February 2025Category:
Energy, InvestmentType:
Research Project ReportsTags:
energy, CCS, carbon capture and storage, coal power plant, investment, IndonesiaPrint Article:
The Asia CCUS Network, led by ERIA, plans to pilot a carbon capture and storage (CCS) project in ASEAN post-2025, with the goal of achieving commercial operations by 2030. The study focuses on large-scale coal power plants in ASEAN with significant remaining operational life.
Cost analysis based on actual power stations in Indonesia estimates CCS costs at US$71 per tonne, highlighting major financial challenges due to low carbon prices and regulatory gaps. To address these hurdles, the study recommends a consortium-based full-chain model for early CCS projects, transitioning to a hub-and-cluster model with dedicated services as the regulatory and financial framework matures.
To overcome financial barriers and accelerate CCS deployment, blended finance – combining international and private funding – is advised. This approach could facilitate investment while supporting regional GHG emissions reduction strategies.
