A New Chapter in Indonesia-Japan Energy Collaboration

Japan and Indonesia have a history of strong economic ties, dating back to their first diplomatic agreements in the 1950s. This partnership has evolved over the decades, with energy being a key focus. Now, Marubeni, Japex, and Pertamina are writing a new chapter by joining forces to explore Bioenergy with Carbon Capture and Storage (BECCS) in South Sumatra, Indonesia. This collaboration, formalised through an agreement signed in February 2022, will revolutionise how we approach energy production and carbon management in the region.

The BECCS Project: What’s in the Works?

The project is centred around a pulp mill in South Sumatra, operated by Tanjungenim Lestari, a subsidiary of Marubeni. This mill uses biomass-fueled boilers for self-power generation—meaning it burns organic materials like wood chips or agricultural waste to produce energy on-site, reducing reliance on external power sources. But what makes this project truly intriguing is the BECCS technology being explored.

Breaking Down BECCS: BECCS stands for Bioenergy with Carbon Capture and Storage. This technology combines two key processes. First, it generates energy by burning biomass, which is considered a renewable source because the carbon it releases was originally absorbed by the plants from the atmosphere. Second, instead of allowing the CO2 emissions from this process to escape into the atmosphere, BECCS captures this carbon dioxide. The captured CO2 is then compressed and transported to a storage site.

What About Storage? The CO2 captured at the pulp mill will be injected and stored in underground synclinal aquifers. A synclinal aquifer is a type of geological formation that naturally traps fluids, in this case, CO2, preventing it from leaking back into the atmosphere. These aquifers are located in the nearby Northern Limau oil field, managed by Pertamina. Using this method, the captured CO2 can be stored securely for potentially thousands of years.

This isn’t just a small-scale experiment—if all goes according to plan, the project could move to a commercial scale by 2030. This timeline means that by the end of the decade, we might see BECCS playing a significant role in reducing carbon emissions, particularly in industries that are hard to decarbonize.

What’s Next?

With a targeted start date in 2030, the success of this initiative could pave the way for more BECCS projects, both in Indonesia and globally. Could this collaboration be the catalyst for broader adoption of carbon capture technologies in hard-to-abate industries? Only time will tell, but the potential is certainly there.