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METI and J-POWER to deploy carbon storage technology in Indonesia

  • May 18, 2020
  • , Nikkei , p. 3
  • JMH Translation

The Japanese government and private sector will deploy in Indonesia a technology to reduce carbon dioxide (CO2) emissions by burying them underground. The Ministry of Economy, Trade and Industry (METI), J-POWER, and others will start a demonstration project in Indonesian gas fields. The project aims to promote Japan’s global warming countermeasures technology in Asia, where the demand for coal-fired energy is expected to persist for some time.


A feasibility study will begin soon. A demonstration project on the scale of several billions of yen is planned over a four-year period starting from fiscal 2021. METI will appropriate project costs in its budget. J-POWER and Japan NUS (JANUS), a JGC group company, will participate in the project, with the cooperation of Indonesia’s Ministry of Energy and Mineral Resources and its state-run petroleum company.


A four-kilometer-long pipeline will be built from an operating gas field in Indonesia’s Central Java province, and a pit will be dug to inject CO2. The plan is to store underground 300,000 tons of CO2 annually. The project is anticipated to expand to neighboring countries.


METI calculated the cost of the process based on an experiment in Tomakomai City, Hokkaido. The cost to store one ton of CO2 underground was between 6,000 and 7,000 yen. It is now evaluating whether the project will be feasible based on profits from emission trading.


The project is expected to utilize the Joint Crediting Mechanism (JCM). The JCM is a mechanism in which Japan cooperates with developing countries to reduce greenhouse gas emissions. The result of reduction is assessed as a contribution by both Japan and partner countries. If the project succeeds in reducing CO2 emissions, the reduction will contribute towards Japan’s greenhouse gas reduction target.

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