GE Vernova’s Gas Power (NYSE: GE), Korea’s CARBONCO, a company specializing in decarbonization solutions established by DL E&C Co., Ltd (KRX: 375500); BP Berau (bp), the Operator of Tangguh; PT. PLN Nusantara Power (PLN Nusantara), a subsidiary of Indonesia’s national utility PLN; and PT Jawa Satu Power (Jawa 1), the owner of PLTGU Jawa 1 jointly owned by shareholders Pertamina New and Renewable Energy, Marubeni and Sojitz; today announced the signing of a Memorandum of Understanding (MoU), to jointly carry out a feasibility study to develop a CCUS value chain and joint solutions to decarbonize gas power plants in Indonesia, powered by GE Vernova power technology. BP Berau Ltd (bp) is the operator of Tangguh and acts on behalf of contractors of Tangguh PSC (namely MI Berau B.V., CNOOC Muturi Limited, Nippon Oil Exploration (Berau) Ltd., KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc., KG Wiriagar Petroleum Ltd.). The joint project aligns with efforts to bolster Indonesia’s energy transition towards a lower-carbon future rapidly and with scale, especially in the power generation sector.
The MoU was signed at the 1st International & Indonesia CCS Forum 2023 which takes place from 11-12 September at Mulia Hotel, Jakarta.
The MoU builds on an announcement made in October 2022, by GE and CARBONCO to jointly explore a roadmap for the integration of CCUS technology with gas-fired power plants in Asia and the Oceania regions, powered by GE Vernova power technology. Both parties have since identified and developed tangible opportunities based on economic viability and project feasibility. Today’s MoU with bp, PLN Nusantara Power, and Jawa1 serves as an important milestone in paving the way to accelerate the adoption of CCUS technologies in Asia.
Under the agreement, PLN Nusantara, Jawa 1, CARBONCO, bp and GE Vernova will collaborate to address the entire CCUS value chain, from the implementation of carbon capture technology in gas-fired power plants to the transportation of CO2 to import and export terminals as well as the sequestration of captured CO2 at the Tangguh field in Teluk Bintuni, Papua Barat, Indonesia. The study endeavors to achieve a deeper understanding of the development of a CCUS value chain for Indonesia as the hub for the region.
GE Vernova will build on its recognized experience in advanced technology and controls to integrate combined cycle power plants with CARBONCO’s CCUS technology. With proven expertise in gas combined cycle plant engineering, operability, and plant integration with carbon capture plants, GE Vernova will lead integration with the goal of ensuring dispatchability, lower carbon intensity, high flexibility and reliability, and lower capital cost.
CARBONCO will deploy its technological capabilities and experience in CCUS that is backed by more than 20 years of experience executing a variety of global decarbonization projects. In addition, CARBONCO has successfully completed FEED (Front-End Engineering Design) and detailed engineering designs for the carbon capture of 3,000 tons per day scale. CARBONCO will capitalize on its strengths in standardization and modularization towards the joint study to help ensure quality standards and de-risk uncertainties.
“GE Vernova continues to play a crucial role in supporting the advancement of the region’s energy goals, working alongside global and local players such as CARBONCO, bp, PLN Nusantara and Jawa 1.” said Ramesh Singaram, Asia President & CEO of GE Vernova’s Gas Power business. “We are especially focused on further developing crucial breakthrough energy technologies such as carbon capture, and are pleased that this collaboration will pave the way for a robust value chain that will help address carbon emissions reduction in the power sector and support climate change commitments in Indonesia.”
Dr. Sang Min Lee, CEO of CARBONCO states that “The top priority of CARBONCO’s business agenda is to alleviate climate change in the world. Being a global player, CARBONCO is working tirelessly to transition the region’s power industry towards cleaner energy more efficiently and effectively. Working alongside global and local players such as GE Vernova, bp, PLN Nusantara and Jawa1 is vital to ensure our business is on the right track. We are confident that today’s agreement will further accelerate our big movement, and CARBONCO and GE will continue to assess the global marketplace for tangible projects with the right integration model.”
The Tangguh CCUS project carried out by bp is the most advanced CCUS project in Indonesia with a development plan that has received approval from the Government of Indonesia in 2021, for ongoing FEED work and planned project sanction in the near future. Holding ca 1.8 GtCO2 in ultimate storage capacity, Tangguh is well-positioned and has tremendous potential to become the country’s first CCS hub for domestic and international emitters. For the initial phase at Tangguh, bp plans to inject 30+ million tons of CO2 back into the reservoir to help recover additional gas production through Enhanced Gas Recovery (EGR). This will be the first large scale CCUS project with EGR in the world.
Kathy Wu, BP Regional President Asia Pacific, Gas & Low Carbon Energy, commented: “As an energy company who has been a long time strategic partner for Indonesia and being the most advanced CCUS hub project in the country, we aim to play an active role in supporting Indonesia to achieve its Net Zero target. Together with PLN Nusantara, Jawa 1, GE and CARBONCO, we will pave the way for the decarbonization of Indonesia’s power plants with potential CO2 injection in Tangguh.”
As a leading multinational energy company which has been operating for more than five decades in Indonesia, bp brings global knowledge and expertise, technology and the financial capability necessary to advance CCUS/CCS initiatives in the country.
In a move to be a leader in the global energy transition, GE Vernova will spin-off in 2024 into an independent company that will focus on accelerating the path to more reliable, affordable, and sustainable energy. In Indonesia, GE has been present for over 70 years with approximately 500 or more employees across three locations, contributing up to 30 percent of the country’s power needs.
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