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.
“We have conducted studies for various PLTUs. A total of 2,600 MW of these power plants are critical power plants for Indonesia’s electricity system and must continue to operate,” Chairani Rachmatullah, President Director of PT PLN Enjiniring, said while addressing Journalism Workshop: Understanding CCS held by Indonesia Business Post in Bogor, West Java, on January 18-19, 2025.
CCS is an option that PLN is considering to extend the operating period of thermal power plants. This technology is considered effective if it can reduce costs and is easy to implement. “We are studying which is more effective to implement,” she cited.
The Oil and Gas Institute (LEMIGAS) said that Indonesia has great potential for CCS implementation thanks to its geological structure.
“Indonesia has a large saline aquifer, so there is a place to store CO2 deep underground,” she said.
In addition, the need for oil through the Enhanced Oil Recovery (EOR) method can also increase the economics of this technology because it produces additional oil production.
CCS technology is easier to apply to the oil and gas sector because it has become a necessity to increase production. However, for PLN, the application of CCS is a solution to extend the life of thermal power plants.
On the other hand, the development of renewable energy technologies, such as wind and solar power which are increasingly cheap, can be an alternative to reduce dependence on fossil fuel power plants.
“In the future, we believe that renewable energy technology will become cheaper, so CCS does not need to be used on a large scale. We only need to focus on overcoming the intermittency of renewable energy,” she said.
PLN believes that gas will still be an important component in the energy mix until 2060, with a portion of around 25 percent. With the large potential of saline aquifers and the right technological support, Indonesia has the opportunity to utilize CCS to maintain energy sustainability while meeting the Net Zero Emissions (NZE) target in 2060.
PLN also emphasized the importance of policy and regulatory support to reduce the cost of implementing CCS.
“With supportive policies, CO2 can be sent to the oil field to support each other’s economy. The right leadership and regulations can reduce the cost of capturing this CO2,” she concluded.
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).
