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New rules set to kick-start Japanese CO2 exports to RI
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The Tambak Lorok gas-fired power plant in Semarang, Central Java, pictured in an undated photograph, is among several power plants where state electricity company PLN is studying the implementation of carbon capture and storage (CCS) technology to reduce carbon emissions. (Courtesy /of Indonesia Power)
T
he Japanese government’s new carbon capture and storage (CCS) rules are set to kick-start the country’s exports of carbon dioxide (CO2) to Southeast Asia as part of Tokyo’s endeavor to achieve carbon neutrality by 2050.
The bill for the CCS Business Act, which is pending approval by Japan’s Diet and expected to be passed this month, would create a regulatory framework for Japan’s CCS projects, and enable private corporations to start CCS projects, including CO2 exports, by 2030.
Tokyo is also slated to vote on whether to ratify the 2009 amendment of Article 6 of the London Protocol, which would legally permit Japan to ship CO2 abroad.
The passage of such regulations will open the door for countries like Japan to export and store their CO2 in Southeast Asia, according to Putra Adhiguna, managing director at the Energy Shift Institute.
When asked about the commercial viability of cross-border CCS projects, Putra estimated that business entities receiving the CO2 would provide a storage fee per tonne, which would include the CO2 reception terminal and other supporting facilities.
“The storage fee also varies, it could be as low as US$10 to over $50 per tonne of CO2,” he told The Jakarta Post on Wednesday, explaining that cost estimates depended on the scale as well as the terms and conditions of the cross-border CCS agreement.
“Using depleted oil and gas fields is expected to reduce costs compared with using a new storage facility. The readiness of ship reception infrastructure, among other things, will also affect the commercial viability of the project.”
