Wednesday, January 22, 2025

Coal-fired power plants still reliable, CCS and CCUS key for decarbonization

Reading Time: 2 minutes
Renold Rinaldi

Journalist

Editor

Interview

The implementation of Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) technologies is relevant to support energy transition in Indonesia although the cost of this technology is relatively high, especially for power plants, said a top PLN engineering unit head.

“When talking about decarbonization, we always compare implementing CCS/CCUS or looking for other alternatives. However, the cost of CCS/CCUS in the gas sector is lower than that of power plants because the CO2 concentration in the plant is smaller,” President Director of PT PLN Enjiniring, Chairani Rachmatullah, told the Journalism Workshop on CCS Technology held by Indonesia Business Post, on Saturday, January 18, 2025. 

The implementation of CCS/CCUS in coal-fired power plants (PLTU) faces major challenges related to investment. The cost per ton of CO2 captured is much higher than the gas sector, considering that the CO2 concentration in fossil power plants tends to be low. However, considering that the majority of power plants in Indonesia — around 63 GW of the total 83 GW — are still based on coal-fired power plants, this technology is considered a strategic choice.

“Coal-fired power plants make a significant contribution to national electricity reliability. Especially in Java, which rarely experiences power outages, this is supported by the existence of coal-fired power plants. If we eliminate coal and turn off 63 GW of power plants, there will not be enough time to replace them with other technologies,” she cited.

A solution that is considered realistic is to implement CCUS in strategic coal-fired power plants. This technology allows coal-fired power plants to continue operating while reducing carbon emissions, so that the energy transition can be more gradual without sacrificing electricity reliability.

The government and energy industry players are expected to determine the priority of which power plants will be installed with CCUS technology. “This is a choice that must be made to ensure the sustainability of the national electricity supply while supporting the decarbonization target,” Chairani explained.

With the challenges and opportunities that exist, the implementation of CCS and CCUS in the fossil power plant sector is an important step in Indonesia’s energy transition roadmap towards the Net Zero Emissions target by 2060.

This journalism workshop is supported by ExxonMobil Indonesia, bp Indonesia, State energy company PT Pertamina, State power utility PT PLN, Medco Energy International, Indonesia CCS Center and the Upstream Oil and Gas Regulatory Task Force (SKK Migas).

Renold Rinaldi

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

President Prabowo Subianto has set the development of the (IKN for the next five years, approving a total budget of Rp48.8 trillion (US$ 3 billion). The majority of the budget is used for the construction of parliamentary buildings and judicial institutions along with supporting infrastructure.
Indonesia officially opened its carbon exchange to international buyers on Monday, January 20, 2025, a move expected to raise funds to help meet the country’s ambitious domestic climate targets.
State power utility PT PLN is studying the implementation of carbon capture and storage (CCS) technology for steam-fired power plants (PLTU) to maintain the reliability of the national electricity system although the cost of its implementation is relatively high at US$40 per ton.
Tito Karnavian, Minister of Home Affairs (Mendagri) says that regional administrations (Pemda) are expected to help the Free Nutritious Meals (MBG) program by donating around Rp5 trillion (US$305.7 million) for the construction of Nutrition Fulfillment Service Units (SPPG).
A number of Indonesian startups again stole international attention by achieving great success − bringing home nine awards − at the ASEAN Digital Awards 2025, held in Bangkok, Thailand.
The Development Study Forum (FKP) in Papua, in cooperation with the Australian National University (ANU) Indonesia Project and supported by KONEKSI (Australia-Indonesia collaborative initiative in knowledge and innovation sector), recently organized a discussion on the prospects for national energy transition.