ExxonMobil and Pertamina, Indonesia’s state-owned energy firm, have signed a collaborative study agreement to evaluate the feasibility of large-scale adoption of lower-emission technologies such as carbon capture and storage (CCS) and hydrogen generation.
The deal expands on the corporations’ work in Indonesia to enhance carbon capture and storage (CCS) after they signed a memorandum of understanding at COP 26 in Glasgow, Scotland. The increased deal will help Indonesia’s net-zero goals and builds on ExxonMobil and Pertamina’s decades-long strategic cooperation.
ExxonMobil is contemplating a carbon capture, utilization, and storage (CCUS) project at its massive Cepu block in East Java, Indonesia, according to Energy Voice. ExxonMobil holds a 45 percent stake in the Cepu block. With a 45 percent stake, Pertamina is a substantial stakeholder.
ExxonMobil is concentrating on creating a (CCS) business in Asia, having established a low-carbon solutions division in February 2021. Significantly, ExxonMobil estimates that Southeast Asia alone has approximately 300 billion tonnes of storage capacity.
Pertamina President Director and Chief Executive Officer Nicke Widyawati and Irtiza Sayyed, president of ExxonMobil Indonesia, inked the newest joint study agreement on May 13th. Pak Luhut, Indonesia’s Coordinating Minister for Maritime and Investment Affairs, and Jack Williams, senior vice president of Exxon Mobil Corporation, were present for the signing.
“This is a significant step forward for both businesses, and it positions Indonesia to be a leader in reducing emissions from low-carbon industries,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “In Southeast Asia, expanding carbon capture and storage would promote a lower-carbon future.” To make this a reality, governments, the commercial sector, and communities will have to work together.”
After signing an agreement in Washington, Pertamina and Chevron announced last week that they will jointly investigate prospective commercial prospects in geothermal, carbon capture, utilization, and storage (CCUS), as well as hydrogen, in Indonesia.
ExxonMobil’s Low Carbon Solutions division is seeking to commercialize lower-emission technology and contribute to global emission reduction initiatives. Its carbon capture and storage efforts are initially focused on point-source emissions, which is the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere and injecting it into deep underground geologic formations for safe, secure, and permanent storage.
CCS, according to ExxonMobil, is a proven technology that may help some of the most polluting industries, such as manufacturing, power generation, refining, petrochemical, steel, and cement, reduce their emissions. According to the business, commercial-scale and widespread deployment of CCS may generate a new sector, leading in job creation and economic growth.
By using ExxonMobil’s expertise, experience, and scale, the company is also pursuing strategic investments in biofuels and hydrogen to bring those lower-emissions energy technologies to scale for decarbonizing segments of the global economy. According to the firm, it has more than 30 years of CO2 collection experience and has caught more human-made CO2 than any other company. With a capacity of around 9 million metric tons per year, it owns nearly one-fifth of the world’s CCS capacity.