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Repsol to start operating 'first' CCS facility in Indonesia by 2027
Ahead of the much-anticipated COP26 at the end of this month, Repsol has announced its plan to install what it claims will be the first operational CCS facility in Indonesia by 2027.
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Smoke rises from a chimney at Repsol's Kali Berau Dalam-2X (KBD-2X) well at Kaliberau Field in the Sakakemang Block, South Sumatra, as seen in this undated handout photograph. The Spanish oil and gas company announced the discovery of 56.6 billion cubic meters (2 trillion cubic feet) of recoverable gas at the field in February 2019. (Courtesy of SKK Migas/-)
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panish oil and gas company Repsol plans to launch its inaugural carbon capture and storage (CCS) project in Indonesia in 2027, touting it as the first operational CCS project in the country and among the biggest in the world.
Repsol director of regional exploration Eastern Hemisphere Mikel Erquiaga said that, starting in 2027, the company planned to begin injecting roughly 2 million tons of captured carbon dioxide (CO2) per year into the depleted Dayung and Gelam fields in the Sakakemang Block in South Sumatra.
Read also: SKK Migas approves $282m plan for Repsol in gas-rich Kaliberau field
This would be three years before other CCS projects in Indonesia, which were still in their pilot phase, he added.
“This is an important milestone for Repsol,” Erquiaga said during a virtual discussion to mark Repsol Low Carbon Day on Oct. 5.
CCS projects have been gaining momentum worldwide. The International Energy Agency (IEA) says the technology is critical to hitting global net zero goals, but it had been plagued with a high failure rate due to high capital costs, unclear revenue streams and limited technological readiness that risked leakage, as well as other issues.
Challenges to developing CCS projects in Indonesia included the lack of a regulatory framework and high financial costs, said Erquiaga, but Repsol expected a new task force under Energy and Mineral Resources Ministry to finish formulating a CCS regulation to address some of these issues by the year-end.
