Singapore has become the first country to sign a Letter of Intent (LOI) with Indonesia for cross-border cooperation in CO2 capture and storage (CCS).
Indonesia issued a ** order last month allowing CCS operators to use 30% of their storage capacity for imported CO2.
Singapore is exploring low-carbon technology pathways such as hydrogen and CCS as part of a series of emissions reduction measures, with the goal of achieving net-zero emissions by 2050.
Singapore and Indonesia will set up a working group to seek a legally binding bilateral agreement between neighbouring countries on the cross-border transport and storage of CO2.
Indonesia's Deputy Minister for Energy Affairs, Jodi Mahardi, said the signing of the outline of the agreement marked "an important milestone in the efforts of both countries towards sustainable development and environmental management".
In a joint statement, Keith Tan, Deputy Minister for Singapore** and the Ministry of Industry (MTI), said that cross-border carbon capture and storage is an emerging solution in Asia to support Singapore's transition to a low-carbon future.
CCS is the process of capturing, transporting, and storing CO2. **The CO2 obtained is not emitted into the atmosphere, providing a pathway to decarbonize hard-to-abate sectors such as energy, chemicals, and power.
According to the International Energy Agency (IEA), the capacity of global carbon capture, utilization, and storage facilities must increase to about 1 billion tonnes per year (GTPA) by 2030 and 6 billion tonnes per year (GTPA) by 2050 to achieve net-zero emissions by 2050.
It is estimated that 40 million tonnes of CO2 were captured and stored globally in 2022.