Pertamina Combines Bioenergy with Carbon Absorption and Storage Technology

REPUBLIKA.CO.ID, BAKU — PT Pertamina (Persero) reiterates its commitment to contribute to the global effort to reduce carbon emissions by innovating the combination of bioenergy with Carbon Absorption and Storage (CCS) technology. The innovation is expected to accelerate the energy transition and support Indonesia's target of achieving emissions reductions of up to 32 percent in line with its self-defined emission reduction target (NDC) upgraded.

Pertamina's SVP of Technology Innovation, Oki Muraza, explained Indonesia's great potential in harnessing natural resources for renewable energy solutions. “In Indonesia, at least 40 million people are still employed in agriculture and forestry. So how can we combine agriculture and forestry with oil and gas? Indonesia is rich in natural resource-based solutions. We are the second largest country in terms of nature-based solutions. Forests are still around 50 percent (of Indonesia),” Oki said at a discussion session at the Indonesian Pavilion at the UN Climate Change Meeting (COP29) on Friday (15/11/2024).

According to Oki, CCS is one of the important elements in Pertamina's energy strategy. This technology enables the storage of large amounts of carbon produced from agricultural and forestry based bioenergy processes. Indonesia's storage capacity is very potential, reaching 7 gigatons of CO2.

Oki underlined the concept of BECCS (Bioenergy with Carbon Capture and Storage), which integrates bioenergy with CCS. “In bioenergy combined with CCS, we want to combine the benefits of these two fields. Bioenergy comes from agriculture and forestry, while is essentially a product of oil and gas,” Oki said.

This process allows carbon absorbed during photosynthesis to be stored in biomass or through injection into depleted oil and gas reservoirs. For example, Oki named Limau Field in South Sumatra as a potential site for the implementation of BECCS.

“The CO2 released by the pulp and paper industry in South Sumatra, about 1 million tonnes a year, can be captured and then stored in depleted reservoirs. The distance between the source and the reservoir is only about 5 kilometers, it is very unique and rarely found in other countries,” he said.

Oki also said this integration could result in carbon credits that could be monetized in the carbon market. With its geographical uniqueness and natural resources, Indonesia has the potential to be a major player in the application of BECCS technology.

In addition to BECCS, Pertamina also emphasizes on the development of geothermal energy as part of the energy transition. With a combination of bioenergy, CCS, and green electricity from geothermal, Oki is optimistic that Indonesia can meet its target of one-third of energy from renewable sources.

“We hope that the contribution of bioenergy together with CCS and green electricity from geothermal will lead Indonesia to meet its renewable energy targets. At the same time, emissions will also be lower,” he said.

To support the implementation of BECCS, Pertamina faces several homework assignments, such as technology development, establishment of regulatory frameworks, and collaboration with technical partners. Oki reiterated the importance of financial support, risk mitigation, and the development of carbon trading and carbon markets in Indonesia.

“We need to establish a regulatory, compliance, licensing, industrialization, and MRV (Measurement, Reporting and Verification) framework. With this, we believe we can invite a lot of investment to Indonesia,” he added.

These innovations not only contribute to emissions reductions, but also have great potential in creating economic opportunities, including carbon trading. In the long term, the integration of bioenergy and CCS could be a globally adopted model.

“This step may not exist in many countries, but it is a unique opportunity for Indonesia. With the right orchestra on capital, technology, infrastructure, and regulatory framework, we look forward to developing the implementation of bioenergy combined with CCS in Indonesia,” concludes Oki.

With a combination of technological innovation and optimal use of natural resources, Pertamina is optimistic that it can promote energy sustainability while improving Indonesia's competitiveness on the international scene.