R&D Roadmap-Issues and Problems to be Solved before CCS Deployment

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1 R&D Roadmap-Issues and Problems to be Solved before CCS Deployment Dr. Usman Ministry of Energy and Mineral Resources R & D C e n t r e f o r Oil a n d Gas Te c h n o l o g y Republic of Indonesia LEMIGAS C C S W o r k s h o p T h e S u l t a n H o t e l 2 2 F e b r u a r y

2 Structure of Presentation The Purpose of the R&D Roadmap R&D Milestone and Roadmap on CCS Main Issues & Challenges-Solutions Possible CCS Development in Indonesia Key Elements to Prompt Deployment of CCS What s Next?

3 The purpose of the R&D roadmap To identify the knowledge gaps To address the challenges of technology integration and scale-up To set up R&D target achievement To provide a vision for addressing the current challenges

4 CCS Development in Indonesia

5 CCS Development in Indonesia R&D - Roadmap: 2010 Storage in Depleted Oil & Gas Reservoir Capture & Transportation CCS as CDM Carbon trade Mechanism Existing Legal & Reg. Framework CO 2 Emission Source CO 2 emission from Energy Sector Impact of Energy Eff. & Renew. Energy 2011 Storage in Depleted Oil & Gas Reservoir CO 2 Capture & Transportation National Regulatory Framework CO 2 Emission Source CO 2 emission from Energy Sector Impact of Energy Eff. & Renew. Energy 2012 Storage in Depleted Oil & Gas Reservoir Storage in Saline and Coal Seams CO 2 Capture & Transportation 2013 CCS Cost Unit 2014 Risk Assessment on Geological Storage

6 Main Issues & Challenges-Solutions Financing near-term demonstration projects and incentivizing longer-term commercialization Engaging energy company to invest in CCS projects Collaborating with international organization Establish incentives to accelerate commercialscale CCS deployment

7 Main Issues & Challenges-Solutions Establishing effective public regulatory schemes Review and adapt existing legal frameworks to regulate CCS demonstration Develop comprehensive CCS regulatory frameworks Address outstanding international legal issues, such as the development of international protocols for monitoring and verification of CO 2

8 Main Issues & Challenges-Solutions Engaging and educating the public adequately to incorporate their concerns into project designs Expand government activities on CCS public outreach and engagement Formalize international public engagement networks and create a public education and engagement toolkit

9 Main Issues and Challenges on CO 2 -EOR Energy company is reluctant on investing money on EOR High risk-high Cost-Many Uncertainties Lack of attractive incentives from the government They prefer doing exploration to find new hydrocarbon fields. No public awareness of CCS CCS requires significant amount investment CO 2 -EOR might be more familiar CO 2 -EOR can offset the costs of CCS

10 Possible CCS Development in Indonesia Bangko Tengah Steam Coal Power Plant 4 x 600 MW Emissions Projection up to 2018: 11.5 MtCO 2 Muara Jawa Steam Coal Power Plant 2 x 100 MW Emissions Projection up to 2018: 10.6 MtCO 2 60 km 60 km East Kalimantan Onshore South Sumatera Onshore U 15 km km 320 km 35 km GU U Jawa Sea Offshore 300 km Subang Gas Processing Plant Emissions Projection up to 2018: 6.2 MtCO 2 Legend: Power Plant Gas Processing Plant Muara Tawar 2,3,4 Combined Cycle Power Plant 3 x 750 MW Emissions Projection up to 2018: 26.6 MtCO 2 Indramayu Steam Coal Power Plant 2 x 1000 MW Emissions Projection up to 2018: 65.8 MtCO 2 Storage Location Pipeline Note: Unscaled Map

11 KEY ELEMENTS CCS REGULATORY FRAMEWORK AND ENABLING POLICIES REGULATORY FRAMEWORK GLOBAL METHODOLOGY IPCC Guidelines NATIONAL/LOCAL REGULATIONS Capture Transport Storage PROMPT DEPLOYMENT OF CCS ENABLING POLICIES INTERNATIONAL FINANCING LONG- TERM LIABILITY PUBLIC ACCEPTANCE Page 11

12 What s Next? Grow CCS collaborative efforts, particularly related to R&D Expand capacity-building efforts in CCS Create new CCS collaboration efforts for the most important industrial sectors Use international collaboration to speed up the learning process and information sharing that needs to occur Demonstration projects are needed in gathering evidence that CCS is safe and effective

13 Thank You Ministry of Energy and Mineral Resources R & D C e n t r e f o r Oil a n d G a s Te c h n o l o g y Republic of Indonesia LEMIGAS

14 Relevant Oil and Gas Regulations with CCS Regulations Government Regulation No.35 year 2004 concerning upstream oil and gas activities Law No. 22 year 2001 regarding oil and gas Ministerial Decree No. 15 year 2008 concerning hydrocarbon transportation Characteristics Reservoir management, best practice and environmental protection General environmental protection Standardization and specification of hydrocarbon pipelines Mostly only consider common/general environmental impact Oil and gas Laws/Regulations can barely be adapted to CCS activities at the moment LEMIGAS

15 Relevant Environmental Regulations with CCS Law No. 32 year 2009 The protection and management of the environment Only emphasize on adverse impact of climate change and its mitigation and adaptation step Exclusion ecosystem damage of subsurface Not specify injection of CO 2 to the subsurface Government Regulation No. 18/1999 and No.74/2001 Management of hazardous and toxic waste Cover methods of storage, transport, permits and risk assessment, monitoring, liability and cost scheme, transboundary project, public awareness & etc. CO 2 is not classified yet as hazardous and toxic waste Minister Regulation No.13 /2007 Requirements and procedures of waste water treatment for upstream oil and gas and geothermal activities using injection method into the subsurface Covers the whole subsurface elements (containment, migration, and etc.) Serve as a basis for developing further legal and regulatory frameworks LEMIGAS