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Expensive carbon capture and storage technology remains challenging: PLN
PLN says high costs remain a challenge for the state-owned electricity company’s efforts to slash emissions from its coal-fired power plants through the use of carbon capture and storage (CCS) technology.
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In operation: The Suralaya coal-fired power plant releases steam on Oct. 31, 2023, in Cilegon, Banten. (AFP/Ronald Siagian )
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LN Enjiniring, the consultant and engineering arm of state-owned electricity firm PLN, has dampened expectations for the use of carbon capture and storage (CCS) to slash emissions from its coal-fired power plants, arguing that the high costs of the novel technology pose a challenge.
Nevertheless, PLN still plans to deploy CCS at some of its coal-fed generators starting in 2040, including at Suralaya units 1-7 in Cilegon, Banten, Indramayu units 1-3 in Indramayu, West Java and the Tanjung Jati B units 1-4 in Jepara, Central Java.
PLN Enjiniring president director Chairani Rachmatullah said the cost of CCS per tonne of carbon dioxide stored amounted to US$40, which was “much more expensive” than the establishment of renewable energy and gas power plants.
“What is [the progress on the implementation of] CCS/CCUS [carbon capture, utilization and storage] at PLN? We studied it, the cost is still at $40 per tonne. Meanwhile, it could cost around $12, $15 or $20 for gas power plants,” Chairani said in Bogor, West Java, on Sunday, as reported by Bisnis.
Chairani explained that, with the $40 per tonne tariff, PLN could produce power at an estimated cost of around 12 US cents per kilowatt-hour (kWh), but ideally the firm would pay a maximum of 8 US cents per kWh to sell electricity at Rp1,467 (9 US cents) per kWh.
“So, the 4 US cents difference must be paid by subsidies,” she said, expressing hesitation over that option, because she would rather use state budget funds “to build schools, bridges and hospitals” instead of subsidizing the company.
Read also: Govt to task SKK Migas with overseeing carbon capture projects
