Singapore and Indonesia sign LOI to collaborate on carbon capture and storage

Singapore and Indonesia have signed a Letter of Intent (LOI) to collaborate on cross-border carbon capture and storage (CCS). The settlement was signed by Keith Tan, Deputy Secretary (Industry) of the Ministry of Trade and Industry Singapore, and Indonesia Deputy Coordinating Minister for Maritime Sovereignty and Energy, Jodi Mahardi.

As per an official news release, this follows Indonesia’s presidential regulation on CCS issued on 30 January 2024, which is able to enable CCS operators to put aside storage capability for worldwide carbon dioxide.

What is CCS?

CCS is the method of capturing, transporting, and storing the carbon dioxide that’s produced as a byproduct from different actions, equivalent to energy era. The carbon dioxide that’s captured will due to this fact not be launched into the environment. CCS offers a pathway to decarbonise emissions from hard-to-abate sectors equivalent to power and chemical compounds, and energy.

Internationally, CCS is thought to be a key decarbonisation pathway to obtain world local weather mitigation. Both the Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency recognise the function of CCS in attaining web zero emissions by mid-century and mitigate the results of world warming.

Terms of the LOI

With the LOI, Singapore and Indonesia affirmed the significance of CCS as a decarbonisation pathway, and the potential of CCS to allow sustainable industrial actions and generate new financial alternatives. A working group comprising Singapore and Indonesia authorities officers will work in the direction of a legally binding bilateral settlement that may allow the cross-border transport and storage of carbon dioxide between Singapore and Indonesia.

Cross-border carbon capture and storage is an rising answer in Asia, and helps Singapore’s transition in the direction of a low-carbon future. Singapore is the primary nation to sign an LOI with Indonesia after its presidential regulation to enable cross-border CCS was introduced. With this LOI, Singapore and Indonesia can grow to be the pathfinders to catalyse deployment of cross-border CCS tasks in Southeast Asia.

Keith Tan, Deputy Secretary (Industry) of the Ministry of Trade and Industry Singapore

Jodi Mahardi mentioned, “This collaboration with Singapore not solely amplifies Indonesia’s dedication to main environmental stewardship within the area but additionally showcases our proactive method in harnessing progressive applied sciences for sustainable development. The initiative positions Indonesia as a key participant within the Southeast Asian CCS panorama, providing a mannequin for cross-border environmental cooperation.”