Machine Translated by Google Proceedings of the III National Seminar on Earth Environmental Engineering

“Domestic and Industrial Waste Management Challenges for Sustainable Development”

Department of Environmental Engineering, Faculty of Mineral Technology, UPN Veteran Yogyakarta, 21 August 2021

Carbon Capture, Utilization, and Storage (CCUS) for Sustainable Development:

Potential and Challenges in Indonesia's Oil and Gas Industry

Fiqya Fairuz Zaemi1, a) and Rian Cahya Rohmana2, b)

1), 2) Petroleum Engineering, Tanri Abeng University
a) Corresponding author: fiqyafairuz@student.tau.ac.id b)
rian@tau.ac.id

ABSTRACT

Indonesia is a large CO2 producing country , one of which comes from the oil and gas industry. Indonesia is committed in the
Paris Agreement to reduce carbon emissions by 29 - 41% by 2030 with the introduction of clean, renewable energy and energy
conversion. The scenario that can be chosen is a sustainable development scenario (SDS), especially carbon capture, utilization
and storage (CCUS) technology. This study aims to look at the opportunities, challenges, effects on the environment and the
influence of CCUS on sustainable development in the Indonesian oil and gas industry. The data used is data that has been
published, because CCUS is still in the research stage of various parties in Indonesia. Indonesia's potential to apply CCUS,
especially in the capture and storage of CO2 is very good. The capture of CO2 comes from oil and gas fields and the CO2 storage
capacity is found in 3 parts, namely the saline aquifer, coal seam and abandoned oil and gas fields. CCUS in the oil and gas
industry is used for enhanced oil recovery and enhanced gas recovery in saline formation to meet SDS goals and sustainable
development. However, the challenge for CCUS in Indonesia is that the government must make regulations

and policies to give confidence to investors and developers. It is also necessary to disseminate information on the safety and
security of CCUS operations to the public. Another challenge is the required cost, infrastructure and the surrounding environment
that is used as CO2 storage. CCUS is one of the answers to reduce CO2 emissions produced by the oil and gas industry, because
it can capture CO2 in the atmosphere, stored below the surface and as a result can increase oil and gas production and reduce
pollution in Indonesia. The results of this study are expected to further develop the potential of CCUS so as to reduce CO2 pollution
in Indonesia.

Keywords: Carbon capture, utilization and storage; CCUS; Oil and Gas; Sustainable Development

ABSTRACT

Indonesia is a high CO2-producing country, one of which comes from the oil and gas industry. Indonesia is committed to the Paris
Agreement to reduce carbon emissions by 29 - 41% by 2030 with renewable energy and energy conversion. The chosen scenario
is a sustainable development scenario (SDS), especially carbon capture, utilization, and storage (CCUS) technology. This study
aims to look at the opportunities, challenges, effects on the environment, and the influence of CCUS on sustainable development
in the Indonesian oil and gas industry. This research using published data because CCUS is still in the research stage of various
parties in Indonesia.
Indonesia's potential to apply CCUS, especially in CO2 capture and storage, is very potent. CO2 capture is sourced from oil and
gas fields, and CO2 storage capacity is found in 3 parts, namely the saline aquifer, coal seam, and abandoned oil and gas fields.
CCUS in the oil and gas industry is used for enhanced oil recovery and enhanced gas recovery in saline formation to meet SDS
goals and sustainable development. However, the challenge for CCUS in Indonesia is that the government must make regulations
to give confidence to investors and developers of this CCUS project. It is also essential to state information on the safety and
security of CCUS operations to the public. Another challenge is the cost required, the infrastructure to be used, and the surrounding
environment used as CO2 storage. CCUS is one of the answers to reducing CO2 emissions produced by the oil and gas industry
because it can capture CO2 in the atmosphere, stored below the surface, and as a result, can increase oil and gas production and
reduce pollution in Indonesia. The results of this study are expected to further develop the potential of CCUS so as to reduce CO2
pollution in Indonesia.

Keywords: Carbon capture, utilization, and storage; CCUS; Oil and Gas; Sustainable development

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PRELIMINARY

Indonesia has abundant fossil fuel resources in the world and will still be the main energy source in the
next few years. Fossil fuels release emissions of carbon dioxide (CO2) and other gases that can cause an
increase in the concentration of carbon dioxide (CO2) emissions in the atmosphere, thus triggering the
issue of global warming. Climate change occurs due to the burning of fossil fuels, so that it is the main
cause of the release of CO2 in the air (Muhd Nor et al., 2016). The increase in carbon emissions from
fossil fuels has caused the Indonesian government to commit to reducing carbon dioxide (CO2) gas
emissions from fossil fuel consumption as an effort to mitigate climate change. The National Energy
Council (2014) provides two possible energy scenarios that are expected to help realize the commitments
made, namely the “business as usual” scenario and the National Energy Policy. This National Energy
Policy scenario, based on the results of Indonesia's agreement in the 2016 Paris Agreement , which
reduces CO2 emissions by up to 26% through increasing the energy mix, reducing dependence on carbon-
based fuels, and spreading renewable energy sources from 2020 to 2050 (Secretary General Team of the
Council National Energy, 2019). However, this is not sufficient to further reduce CO2 emissions , so the
government applies Carbon Capture, Utilization and Storage (CCUS) technology (Adisaputro & Saputra,
2017). The application of CCUS in Indonesia does not yet exist, but several studies have collected data.

This study aims to look at the opportunities, challenges, effects on the environment and the influence of
CCUS on sustainable development in the Indonesian oil and gas industry. CCUS technology aims to
capture as much as 85% of CO2 emissions from power plants and other industries before being transported
via pipelines or ships and stored as deep as 700 meters below the earth's surface. There are 3 main steps
in CCUS: capture and compression of CO2 at emission sites, transport of CO2 to storage sites, and
permanent storage of CO2 in subsurface geological formations (Figure 1), or use of CO2 to increase the
rate of EOR production (Commission, nd). ).

CCUS has been carried out on several oil and gas projects outside Indonesia for example in Weyburn,
Canada. This project incorporates CO2-enhanced oil recovery located in the Williston Basin
with the aim of storing some of the CO2 permanently below the surface by taking CO2 which is usually
released in an oil and gas field. The main source of CO2 comes from the Dakota Gasification Company
facilities, where coal is gasified to make synthesis gas (methane). The lifetime of the CO2-EOR project is
20 – 25 years, so it is estimated that around 20 MT CO2 will be stored in the field. Already about 1,000
TCO2 per day is injected into the surface, this will increase over time. Monitoring involves a high resolution
(4-D) seismic survey and is carried out to analyze potential leaks. Surface monitoring includes groundwater
sampling and analysis of potable groundwater, sampling and analysis of groundwater is carried out. Until
now, there is no indication of CO2 leakage to the surface and the surrounding environment

(Environment Protection and Heritage Council (EPHC), 2009). The Lula – Sapinhoa oil field in Brazil is the
largest CO2 – EOR project in the world and uses deep water technology. This project was started in 2013
and has proven to increase production by 100,000 b/d using CO2 per year from an offshore gas processing
plant . An estimated 2.5 MMT was injected in 2017 (Global CCS Institute, 2018). This project involves the
deepest CO2 injection well which is more than 5,000 m below sea level (Asian Development Bank, 2019).

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METHOD

This research was conducted using secondary data, namely data collection on Carbon Capture,
Utilization and Storage (CCUS) in Indonesia which has been published in the last ten years. The
research started from data collection on CCUS in Indonesia, data analysis
increase in CO2 emissions in Indonesia without CCUS and with CCUS, and analysis of which locations
are requirements for developing a CCUS project. The CCUS technology project in Indonesia has not
yet been fully implemented, because from several studies, studies are still being carried out in several
oil and gas fields in Indonesia, but it is very likely that CCUS technology will start soon, given its
positive impact and potential on the environment and sustainable development in the Indonesian oil
and gas industry.
RESULTS AND DISCUSSION

CO2 Capture Technology

CO2 capture is carried out by utilizing one of three main strategies, namely post-combustion capture,
pre-ignition capture or oxyfuel combustion. CO2 in gas pipelines can be isolated and captured from
various stationary sources, including: fossil fuel power plants, refinery units, steel plants, biomass
plants, and normal gas preparation. In gas processing plants, CO2 must be isolated from the raw gas
to produce quality regular gas (Figure 2).
The captured CO2 only needs to be dried and packaged before the transportation process (Muhd Nor
et al., 2016). Downstream refining or combustion and gate to gate compression have a major
contribution to CO2 emissions . However, there is uncertainty in calculating CO2 storage, because
CO2 is injected into the same reservoir as the source (Kelly et al., 2019).
CO2 Storage Technology
Potential CO2 storage has 3 parts, CO2 captured must be put into deep subsurface (unused oil and
gas fields), coal seams that are not potential, and saline aquifers. The infused CO2 will be stored as
a -sized liquid
thick and can be captured through a wide variety of components (eg, bottom capture and stratigraphy,
retained gas capture, solubility capture, mineral capture, and hydrodynamic capture). However, there
is a problem regarding CO2 storage , namely CO2 storage capacity (Muhd Nor et al., 2016).

Types of CO2 storage in Indonesia include (Best et al., 2011):

1. Saline aquifers are predicted to be identified in the Natuna region, however, there is no detailed
study to identify opportunities for storing saline aquifers in Indonesia at this time.
2. Coal seams, abundant coal seam reserves, especially low rank coal, are spread over several
coal basins. The adsorbed methane must be produced. However, most of Indonesia's coal
seams are currently still in the non-production stage.

3. Long abandoned oil and gas fields. This type of storage has great potential, because a well-
characterized reservoir and existing infrastructure can reduce exploration costs in finding new
locations. However, abandoned oil and gas fields have a higher potential for leakage, so
proper mitigation is needed (Figure 3).

CO2-EOR storage allows for monitoring storage performance over time and understanding whether
CCUS activities are achieving their primary goal of optimizing CO2 storage within reservoir
geomechanical and operational constraints. This can help visualize CO2 storage compared to
maximum storage capacity as well as get a practical calculation of each unit of CO2 injected and the
appropriate amount of CO2 to be stored in the reservoir (Kelly et al., 2019).

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CO2 Pemanfaatan Utilization

Carbon capture, utilization and storage (CCUS) has been studied in recent years in Indonesia.
One of the studies on the use of CCUS in Indonesia (Adisaputro & Saputra, 2017)
revealed that in reducing CO2 emissions in Indonesia, the CCUS alternative was used provided that the
Government of Indonesia accepted the National Energy Policy scenario which estimates a significant part
of the energy mix from renewable energy (Figure 4). The application of CCUS not only reduces CO2
emissions but also has the potential to separate economic growth from CO2. However, the development of
CCUS has not been well developed. According to research by Best, et al. (2011) in collaboration with
LEMIGAS, conducted a study on the development status of CCS in Indonesia. The results of the study
reveal that the regulatory and legal aspects regarding the operation and management of CCS projects in
the long term should be considered by the Government of Indonesia. The use of CCUS technology in
Indonesia only focuses on increasing production in old oil and gas wells spread across several locations in
Indonesia. Thus, the potential for the spread of CCUS in Indonesia is proven to exist, especially in terms of
CO2 storage related to enhanced oil recovery. However, to realize this potential, large funds are needed
and make regulations from the government for CCUS.

CCUS Challenge in Indonesia

The main constraint for CCUS in Indonesia is the lack of applicable regulations for CCUS operations which
are necessary to provide confidence to investors and project development in Indonesia and to provide
public confidence in the safety and security of operations. Currently, Indonesia does not have a full legal
and regulatory framework regarding the implementation of CCUS.
However, in environmental regulations it can be adapted to CCUS which focuses on subsurface utilization
for Waste storage. Ministerial Regulation No. 13 of 2007 regulates the requirements and procedures for
treating wastewater in upstream oil and gas and geothermal activities with the subsurface injection method.
This Ministerial Regulation is very suitable for CCUS especially in the storage aspect and is the initial basis
in the development of the legal and regulatory framework for CCUS in Indonesia (Best et al., 2011). The
cost of implementing CCUS in Indonesia varies from projects with low rates of natural gas extraction and
processing to more expensive projects in electricity and industry. There is some potential for CCUS to be
funded through other methods such as a clean development mechanism, enhanced oil recovery, and other
options. To minimize price increases alternative funding options can be used for CCUS and EOR. CCUS is
still considered too expensive for Indonesia. Indonesia only prioritizes on increasing and maintaining energy
security and providing affordable energy for the population. As a result, in the absence of international
financial support, Indonesia is only interested in CCUS if it contributes to energy supply or energy security
goals (Best et al., 2011).

The level of public awareness of CCUS in Indonesia has remained low in recent years, although oil and
gas practitioners have developed a good understanding of CCUS, so it is necessary to disseminate
information about CCUS in general, safety and security of operations to the public. However, interest in
CCUS research in Indonesia has begun to increase and regulations have also been issued regarding short-
term R&D plans at CCUS which do not only focus on technical aspects but non-technical aspects such as
regulatory development.
CCUS Potential and Sustainable Development
Indonesia is well positioned to play an active role in CCUS with its potential for CO2 capture and CO2
storage capacity . The Indonesian natural gas industry offers CCUS potential as a tool to reduce CO2
emissions, especially emissions from the oil and gas, electricity, and industrial sectors. CCUS focuses on
CO2 emissions with sources in power generation and oil and gas production, and is close to CO2 storage
locations. Currently, the possible option for CO2 storage is enhanced oil recovery, because oil production
has the potential to generate additional revenue to offset CCUS costs. However, CCUS for the long term
cannot be carried out with this option because when the oil produced from

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EOR releases CO2. The application of CCUS in the electricity sector also cannot reduce CO2 emissions but
can accelerate industrialization by increasing the number of new power plants to achieve the national
electrification target (Best et al., 2011).
CCUS technology can capture CO2 for storage in oil and gas reservoirs that are used up for EOR projects
and enhanced gas recovery (EGR) in saline formation to meet economic development goals and energy
security. CO2 storage with EOR is Indonesia's first step due to the large number of old oil fields and the
national policy to increase national oil production which has declined in recent times. Thus, this measure
provides many benefits by contributing to the reduction of CO2 emissions, improving energy security and
building experience in CCUS operations (Best et al., 2011).

The first CCUS study project is planned to be implemented in Gundih Region, Central Java Province, Indonesia
(Figure 5). The Gundih area is a gas field under the operation of Pertamina EP. This area was chosen after
several meetings between geoscientists and petroleum from Indonesia and Japan in 2009 and 2010. Based
on gas reserve data, it is estimated that the initial gas in place (IGIP) for this area is 435.96 BSCF and the
results of reservoir simulation studies, this area can be produced 62 MMSCFD of gas in 12 years. This area
has 8 wells, 5 wells on the Kedungtuban structure, 3 wells on the Randublatung structure and 2 wells on the
Kedunglusi structure with a well depth of 2823 – 3627 m TVDSS. Gas in the Gundih area started production
in early 2013. All wells have been drilled, and are in the stage of completion or work over, while the gas facility
is in the construction stage. Pertamina EP builds a CPP (Central Processing Plant), all gas produced from the
well is sent to CPP first. CPP is the unit that separates methane gas from the others. This needs to be done,
considering that the content of non-methane gas is quite high, especially the CO2 gas content which reaches
21.6%. The CO2 content in another field, but still located near the Gundih area, has a higher CO2 content . If
the Gundih project is run and successful, it is possible to offer CO2 injection infrastructure to other oil and gas
companies, so that CO2 emissions stored in this area can be maximized (Sule et al., 2011).

Another project that is still being planned is the Sukowati oil field in East Java (Figure 6). The Sukowati field
is a carbonate oil reservoir which was discovered in 2001 and is located in the onshore part of East Java which
is operated by Pertamina EP. Precisely in the Tuban Block, East Java Province with a total reserve of 308
million STB. This field has produced 100 million barrels of oil. The reservoir fluid in this field has a mass of
CO2 of 20 – 25% which is channeled to the Mudi Central Processing Area (CPA) for disposal. The CO2 -EOR
project is proposed by Pertamina EP which will start in 2020 with the aim of increasing field applications six
years later. The CO2 generated during oil and gas production in this field is reused for pilot injection. Full-field
CO2 – EOR project will involve CO2 . capture

from the Jambaran Tiung Biru (JTB) natural gas field. Gas production from this field is planned to start in 2022
and once full scale operation is achieved it will be the largest single source of CO2
from Pertamina EP activities (Kelly et al., 2019).
The application of CCUS in Indonesia is still not running, but the potential for developing CCUS in Indonesia
has been planned. Starting from two locations, namely the Gundih Field and Sukowati Field, it is planned that
the Natuna Basin has the potential to carry out CCUS when viewed from the gas production in that area.

Risk assessment is important in the CCUS project and the method used globally is FEP. The Quintessa
features, events and processes (FEP) method is a widely accepted and globally used method. This method is
one that requires the involvement of many experts and stakeholders from the project area, government, and
other affected or influential members. The technique used for simplification of the first pass in the Sukowati
CCUS project can be seen in Figure 7 (Kelly et al., 2019).

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The benefits of CCUS for sustainable development include creating jobs, extending the life of existing
infrastructure, reducing the operational costs of providing electricity, and providing knowledge to support
innovation-based economic growth. The success of CCUS is the first step in reducing CO2 emissions in
Indonesia (ESDM, 2021). The government's efforts in exploring and deploying CCUS are to predict the
consumption of fossil fuels, the amount of CO2 emissions, and Indonesia's population growth in the future.
CCUS can contribute to broader energy security with environmental, social and economic objectives (Asian
Development Bank, 2019):

1. Enable greater energy diversity, including the use of fossil fuels

which is sustainable and cleaner;
2. Maintaining long-term employment and investment opportunities in energy-intensive industries;
3. Protect the value of substantial investments in energy and other industrial infrastructure that have been
made;
4. Expanding technology options for power generation; and 5. Enable
investment in alternative sources and energy, including the production of hydrogen emissions
lower than fossil fuels.

CONCLUSION

• CCUS is a way to reduce CO2 emissions from various industries, especially the oil and gas industry.
Capture CO2 in the atmosphere, then stored below the surface and can also be used to increase oil
and gas production and reduce pollution in Indonesia.

• Challenges in developing CCUS in Indonesia are unclear government regulations, costs involved in
development, infrastructure and the surrounding environment where CO2 will be stored.

• The opportunity to develop CCUS in Indonesia is quite large when viewed from the location of storage
in old wells that have been abandoned for a long time. However, it is necessary to disseminate
information regarding the safety and security of CCUS operations to the Indonesian people.

• The benefits of CCUS for sustainable development include creating jobs, extending the life of existing
infrastructure, reducing operational costs for providing electricity, and providing knowledge to support
innovation-based economic growth.

THANK-YOU NOTE

The author is grateful to those who have helped and supported during the research, in particular the Petroleum
Engineering Study Program, Tanri Abeng University. Thanks also to the committee of the National Seminar
on "Challenges of Domestic and Industrial Waste Management for Sustainable Development" Department of
Environmental Engineering, Faculty of Mineral Technology, UPN Veteran Yogyakarta for providing the
opportunity to publish this research.

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BIBLIOGRAPHY

Adisaputro, D., & Saputra, B. (2017). Carbon capture and storage and carbon capture and utilization: What
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Asian Development Bank. (2019). Carbon Dioxide-Enhanced Oil Recovery in Indonesia: An Assessment of
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Best, D., Mulyana, R., Jacobs, B., Iskandar, UP, & Beck, B. (2011). Status of CCS development in Indonesia.
Energy Procedia, 4(2011), 6152–6156. https://doi.org/10.1016/j.egypro.2011.02.624
Commission, E. (nd). Carbon Capture, and SETIS.Use http://setis.ec.europa.eu/system/files/
Storage.
CCS EII 2013-2015 IP.pdf
Duncan, DW, & Morrissey, EA (2011). The Concept of geological carbon sequestration. USGS Science for a
Changing World, March, 1–4.
Environment Protection and Heritage Council (EPHC). (2009). Environmental Guidelines for Carbon Dioxide
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Table 1. CCUS Commercial Projects for EOR Project

Country start date Cumulative CO2
injection (MMT)
Canada Greats Plains Synfuels 2000 40
(Weyburn – Midale)
Boundary Dam (Weyburn – 2014 2
Midale)
United States Terrell (formerly Val Verde) 1970s 20
Enid 1980s >10
Shute Creek 1980s >50
Century Plant 2010 3
Air Products SMR 2013 4
Lost Cabin 2013 3
Coffeeville Gasification 2013 2
Petra Nova 2016 2
Brazil Lula / Sapinhoa pre-salt 2013 7
Saudi Arabia Ottoman (Ghawar) 2015 2
United Arab Emirates Abu Dhabi CCS 2016 1
People's Republic of China CNPC – Jilin 2018 1

CCS = carbon capture and storage, SNPC = China National Petroleum Corporation, CO2 = carbon dioxide,
MMT = million metric tons.
Source: Global CCS Institute (2018)

Figure 1. Carbon Capture and Storage Process .

Source: Global CCS Institute (2018)

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Figure 2. Illustration of the Geological Concept of Carbon

Sequestration (Compiled by Douglas W. Duncan and illustrated by Eric A. Morrissey)
Source: Duncan & Morrissey (2011)

Figure 3. CO2 storage , namely 1) Saline Formation; 2) Injection of Coal Seams; 3) Use of CO2-EOR; 4) Depleted
Oil and Gas Reservoir
Source: Global CCS Institute (2018)

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Figure 4. CO2–EOR Usage

Source: Global CCS Institute (2018)

Figure 5. Geographical Map of Gundih Field

Source: Sule et al. (2011)

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Figure 5. Geographical Location of Sukowati Field, East Java Basin, Indonesia (Pertamina)
Source: Kelly et al. (2019)

Figure 6. Workflow Risk Assessment

Source: Kelly et al. (2019)

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