Exxon Mobil plans to invest up to $15bn to develop petrochemical project and carbon capture and storage (CCS) facilities in Indonesia, reports Reuters, citing Indonesia President Joko Widodo in a presidential palace statement.
The CCS facilities are expected to become the biggest in South East Asia.
Earlier in November 2023, Indonesia signed an initial deal with a unit of Exxon to explore investment in a petrochemical project to enable production of polymers.
Indonesian state energy company Pertamina and Exxon also agreed to assess investments of $2bn for the development of CCS facilities utilising two underground basins in the Java Sea.
Exxon Mobil Indonesia president Carole Gall was quoted by the news agency as saying: “These large-scale opportunities could substantially boost industrial growth and decarbonisation in Indonesia, as well as the Asia-Pacific region.”
Pertamina said that the proposed CCS hub will have potential storage capacity of at least three gigatons of carbon dioxide (CO₂).
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The country is considering using depleted oil and gas reservoirs to store CO₂.
It is also finalising legislation that would allow the storage of carbon imported into the country.
Earlier this year, Pertamina signed multiple agreements to collaborate on research, development and implementation of low-carbon product technologies and their deployment in Indonesia.
The collaboration will focus on CCS, carbon capture, utilisation and storage, blue hydrogen/ammonia, new and renewable energy, and other related areas.