GE Vernova, CARBONCO, BP, PLN Nusantara, and Jawa 1 Sign MoU to Develop CCUS Value Chain in Indonesia

In a significant development aimed at advancing Indonesia’s energy transition towards a lower-carbon future, GE Vernova’s Gas Power, CARBONCO, BP Berau, PT. PLN Nusantara Power (PLN Nusantara), and PT Jawa Satu Power (Jawa 1) have signed a Memorandum of Understanding (MoU) to jointly conduct a feasibility study for the development of a Carbon Capture, Utilization, and Storage (CCUS) value chain and collaborative solutions to decarbonize gas power plants in Indonesia, powered by GE Vernova power technology. This strategic partnership was announced at the 1st International & Indonesia CCS Forum 2023, held from September 11-12 at Mulia Hotel, Jakarta.

The collaboration builds on a prior announcement made in October 2022 by GE and CARBONCO, outlining their intention to explore the integration of CCUS technology with gas-fired power plants in the Asia and Oceania regions that utilize GE Vernova power technology. Since then, both parties have identified viable opportunities based on economic viability and project feasibility. The newly signed MoU with BP Berau, PLN Nusantara Power, and Jawa1 marks a crucial milestone towards accelerating the adoption of CCUS technologies in Asia.

Under the agreement, PLN Nusantara, Jawa 1, CARBONCO, BP, and GE Vernova will collaborate on the entire CCUS value chain, encompassing the implementation of carbon capture technology in gas-fired power plants, CO2 transportation to import and export terminals, and the sequestration of captured CO2 at the Tangguh field in Teluk Bintuni, Papua Barat, Indonesia. The feasibility study aims to deepen understanding and develop a robust CCUS value chain for Indonesia, positioning the country as a regional hub for CCUS initiatives.

GE Vernova, leveraging its expertise in advanced technology and controls, will integrate combined cycle power plants with CARBONCO’s CCUS technology. With a proven track record in gas combined cycle plant engineering, operability, and plant integration with carbon capture facilities, GE Vernova will lead the integration efforts to ensure dispatchability, lower carbon intensity, high flexibility, reliability, and lower capital costs.

CARBONCO, with over 20 years of experience in executing global decarbonization projects, will contribute its technological capabilities and expertise in CCUS. Having completed Front-End Engineering Design (FEED) and detailed engineering designs for carbon capture at a scale of 3,000 tons per day, CARBONCO will emphasize standardization and modularization in the joint study to maintain quality standards and mitigate uncertainties.

Ramesh Singaram, Asia President & CEO of GE Vernova’s Gas Power business, underscored the role of GE Vernova in advancing the region’s energy goals and addressing carbon emissions reduction in the power sector. He expressed confidence that this collaboration would establish a robust value chain and support climate change commitments in Indonesia.

Dr. Sang Min Lee, CEO of CARBONCO, emphasized their top priority of mitigating climate change and the significance of partnerships with global and local players like GE Vernova, BP, PLN Nusantara, and Jawa 1 to achieve their mission. He noted that the collaboration would accelerate their efforts to transition the region’s power industry towards cleaner energy more efficiently.

The Tangguh CCUS project, led by bp, is Indonesia’s most advanced CCUS project with approval from the Government of Indonesia in 2021. This project is focused on ongoing FEED work and planned project sanction in the near future. With an ultimate storage capacity of approximately 1.8 GtCO2, Tangguh has significant potential to become Indonesia’s first Carbon Capture and Storage (CCS) hub for domestic and international emitters. In the initial phase, bp plans to inject over 30 million tons of CO2 back into the reservoir to enhance gas production through Enhanced Gas Recovery (EGR), making it the world’s first large-scale CCUS project with EGR.

Kathy Wu, BP Regional President Asia Pacific, Gas & Low Carbon Energy, highlighted bp’s commitment to support Indonesia in achieving its Net Zero target. She stated that the collaboration with PLN Nusantara, Jawa 1, GE, and CARBONCO would pave the way for the decarbonization of Indonesia’s power plants, with the potential for CO2 injection in Tangguh.

As a leading multinational energy company with over five decades of operations in Indonesia, bp brings global knowledge, expertise, technology, and financial capabilities necessary to advance CCUS/CCS initiatives in the country.

GE Vernova’s spin-off in 2024 into an independent company focused on accelerating the transition to reliable, affordable, and sustainable energy aligns with its commitment to playing a key role in Indonesia’s power sector for over 70 years.

This collaboration represents a significant step towards Indonesia’s energy transformation, promoting cleaner energy solutions and addressing climate change concerns.