Can be sold on carbon exchanges, captured via CCS technology

It can be sold on the Carbon Exchange if captured via or by using Carbon Capture Storage (CCS) technology. This was revealed by the Ministry of Energy and Mineral Resources (ESDM) on Tuesday (31/10/2023) in a webinar.

Director General of Oil and Gas of the Ministry of Energy and Mineral Resources Tutuka Ariadji stated that emissions captured using Carbon Capture Storage (CCS) technology can be further monetized by being traded on a carbon exchange.

According to Director General of Oil and Gas of the Ministry of Energy and Mineral Resources Tutuka Ariadji, the draft Presidential Regulation (Perpres) being drafted and Ministerial Regulation No. 2 of 2023 are in conjunction with the Presidential Regulation on Carbon Economic Value (NEK) and related Minister of Environment and Forestry (KLHK) regulations.

The concept of CCS activities for the PSC cost recovery scheme will be considered as petroleum activities so that it will be included as cost recoverable. He said that Indonesia’s carbon storage capacity reserves are very large, where from existing fields about 8 giga tons while the need is at most 2 giga tons. Plus Indonesia still has 400 giga tons as widespread CCS.

It is said that there is a common thread from the regulation that allows the captured carbon to be traded on the carbon exchange. The scheme that will be carried out, Co2 that has been stored must be registered first, then validated. How much Co2 is obtained, then validated, there is the preparation of results and authority reports, verification, then issued a Certificate of Emission Reduction (SPE) by KLHK.

Currently, he said, there is no carbon trading implementation through IDX Carbon from the oil and gas industry. Now there are 15 CCS/CCUS projects developed and spread throughout Indonesia.@