Indonesia, a country dominated by fossil fuels, has announced its intention to reduce its emissions by signing a comprehensive memorandum of understanding with ENI.
The agreement was signed by the Minister of Energy and Mineral Resources, Arifin Tasrif, with officials from Indonesia and ENI.
MvV covers the development of biological feedstocks for the production of biofuels, natural and technological carbon emissions and other energy transition and decarbonization initiatives, including, but not limited to, conservation of carbon capture (CCS), through the use of carbon capture. . and storage (CCS/CCUS) and energy efficiency.
The partnership foreshadows Indonesia's efforts to accelerate decarbonization to achieve zero emissions by 2060 "or sooner."
ENI is involved in 13 production sharing contracts (nine in deepwater fields) in Indonesia with actual production of 705.6 million cubic feet of gas in 2023. Its annual hydrocarbon production is 23 million barrels AD and supplies 1 .36 billion cubic meters of LNG.
Among its main areas of activity is the development of the Merakes field, located in the deepwater areas of East Kalimantan, which will allow the country to increase gas production for the domestic energy market and for export, using existing infrastructure. Last October it announced a major gas discovery in the Kutei basin, about 85 kilometers off the east coast of Kalimantan, after buying Chevron's stake in the basin in July.
According to the IEA, Indonesia's remarkable economic growth over the past five decades has had a major impact on the energy sector and emissions, with coal playing an important role in both. Despite recent signs of slowing exports and commodity prices, its economy still grew by 5% in the fourth quarter of 2023.
Young power plants and industries producing cement, iron and steel will need clean energy alternatives and energy efficiency measures for Indonesia to meet its 2060 targets.
Indonesia is already taking important steps to complete Southeast Asia's first CCUS regulatory framework by early 2023. However, for the CCUS to play its diversified role in Indonesia's decarbonization, additional measures are needed to expand the current landscape beyond the oil and gas sector.
There are more than a dozen CCS projects in the pipeline, most of which are scheduled to launch in 2030.
Work on the first project began last November. A project controlled by BP in West Papua province could store up to 1.8 gigatonnes of carbon dioxide (CO2), Indonesian Energy Minister Arifin Tasrif said.
Masdar recently signed cooperation agreements with Indonesian utility PLN to develop key plans for the development of Southeast Asia's largest floating solar power plant and explore the possibilities of using green hydrogen.
The plant, located at the Sirat Reservoir in the Indonesian province of West Java, opened earlier this month and produces enough renewable energy to power 50,000 homes, saving 214,000 tonnes of carbon emissions a year. Last September, both parties signed an agreement to triple the capacity of the second phase of the Cirata plant to 500 MW.
