JakartaGlobe-Jan 22
American oil giant ExxonMobil has agreed to invest up to $15 billion for carbon capture and storage or CCS as well as a petrochemical refinery in Indonesia.
The company and the Indonesian government inked a memorandum of understanding (MoU) on the project in Jakarta on Wednesday. Senior minister Airlangga Hartarto told reporters that ExxonMobil’s petrochemical investment would support Indonesia’s push for value-added processing. The petrochemical facility is set to produce plastic. The CCS — which captures emissions from industrial processes and stores them deep underground in geological formations — will help Indonesia move the needle on sustainability.
“This project is expected to deliver a significant impact on various sectors in Indonesia. … It will create jobs and show the commitment to sustainability. This CCS technology is capable of absorbing 90 percent of the emissions [from industrial sources],” Airlangga said, shortly after the deal signing. CCS facility is expected to store 3 million tons of carbon dioxide. Susiwijono claimed that it would also be the first large-scale CCS facility in Indonesia once operational. ExxonMobil has yet to decide on the location of both facilities. ExxonMobil is mulling setting up the CCS somewhere in the Sunda-Asri basin in the Java Sea. They are also still trying to find the best location for the petrochemical refinery, although it is likely to be situated on Java island. The Indonesian government and ExxonMobil will also set up a joint task force to make sure everything goes well without a hitch. The government reported that Indonesia recorded $2.8 billion in foreign direct investment from the US in January-September 2024. This made the US as Indonesia’s fourth-largest source of FDI. Read more at: https://jakartaglobe.id/business/exxonmobil-to-invest-up-to-15-billion-in-indonesian-carbon-storage-petrochemical
