Volume 5, Quarter I-2023

Asia CCUS Network Newsletter

A. Summary of the Past Events

ACN participated in Japan CCUS Forum 2022

1 December 2022

Hybrid Forum, 1 December 2022: The Japan CCS Forum was hosted by the Global CCS Institute
(GCCSI) with support by the Japan Coal Frontier Organization (JCOAL) and the Japan Oil, Gas and
Metals National Corporation (JOGMEC).

Along with other keynote speaker from Ministry of Economy, Trade and Industry (METI) and New
Energy and Industrial Technology Development Organization（NEDO), Mr Shigeru Kimura, Special
Adviser to the President on Energy Affairs at the Economic Research Institute for ASEAN and East
Asia (ERIA) delivered his keynote speech, introducing the Asia CCUS Network (ACN) as a platform
for development and deployment of CCS/CCUS in the Asia region.

The main theme of the JCCS Forum this year was the role of finance and incetives in accelerating
the commercial deployment of CCS, and updates on the global CCS Overview at the global level
and from the Middle-East to China.

The event recording and presentation are available here.

ACN supported METI-JOGMEC-IETA Joint
Workshop
Global Carbon Market and CCS –
Towards ASEAN Decarbonisation
25-26 January 2023
Virtual Workshop, 25-26 January 2023: in
collaboration with the Ministry of Economy,
Trade and Industry (METI) and the International
Emissions Trading Association (IETA), JOGMEC
held a workshop on carbon credit and creation
of environmental value through CCS with the
aim to facilitate CCS deployment through the
appropriate use of carbon markets. ACN
supported the success of this workshop.
In order to facilitate CCS project development
and contribute to decarbonization, it is
necessary to foster common understanding on
the potential of CCS in climate change
mitigation as well as issues such as emission
reductions, accounting methodologies, and risk
management. To that end, it is important to
learn from precedents and participate in
international discussions.
Additionally, knowledge sharing on good
practices in using the carbon market will be key
to creating high quality carbon credits including
evaluation of co-benefits other than mitigation
impact.
The workshop materials are available here.
The 6th ACN Knowledge Sharing
Conference
31 January 2023
Leading Canadian Company Talks Climate
Technology and Direct Air Capture Opportunities
in Asia
Virtual Conference, 31 January 2023: Canadian
company Carbon Engineering’s work in the
commercialisation of direct air capture (DAC)
technology offers the Asian region rich insights
into the potential benefits and opportunities of
this important type of carbon dioxide removal
(CDR) innovation. With restricted time to cap
global warming from exceeding 1.5°C and to
prevent irreversible climate effects, DAC
technology is a complementary solution to
decarbonise hard-to-abate industries as well as
to remove carbon dioxide (CO2) emissions on a
large scale. As Asia and ASEAN move forward
with their emissions reduction journey, DAC
offers numerous advantages to support the
region’s energy transition process.
CLICK HERE FOR THE FULL ARTICLE
B. Publications (Report, Journal & Article)1

Carbon Capture, Utilisation and Storage (CCUS) Potential in the Philippines

By Jesus T. Tamang, Former Director, Energy Policy and Planning Bureau, Department of Energy in the
Philippines - ACN Advisory Member

Note: Much of the information in this material is from the updated Philippine Energy Plan 2020–2040 and
available materials from the Economic Research Institute for ASEAN and East Asia (ERIA).

The updated Philippine Energy Plan (PEP) 2020–2040 is set to support the country’s economic growth rate of
7.4% towards the end of the 2020–2040 planning period. During the period, electricity sales are expected to
increase four-fold whilst total final energy demand is seen to post an annual increase of 5.8%. The Philippines,
whilst not a major greenhouse gas (GHG) emitter, is a signatory to the Paris Agreement and has submitted
its Intended Nationally Determined Contribution (INDC) to the United Nations Framework Convention on
Climate Change (UNFCCC). The country has also submitted its Nationally Determined Contribution (NDC),
which aims to reduce the country’s GHG emissions by 75.0% by 2030 as an aspirational target compared with
the business-as-usual (BAU) forecast. This comprises 72.29% conditional commitment and 2.71%
unconditional commitment. Under the NDC, the energy sector remains the country’s major source of GHG
emissions.

The PEP 2020–2040 presents how the energy sector intends to help achieve the county’s NDC through direct
GHG reduction and GHG avoidance from renewable-based electricity generation.Read more….

Indonesia Reaches an Initial Milestone in Carbon Capture, Utilisation, and Storage (CCUS)
By I Gusti Suarnaya Sidemen, Indonesian Independent Researcher Expertise on Oil & Gas, CCS/CCUS - ACN
Advisory Member

In 2022, Indonesia reached an initial milestone in the effort to implement a carbon capture, utilisation, and
storage (CCUS) programme by successfully starting two pilot projects of carbon dioxide–enhanced oil
recovery (CO2–EOR) in Jatibarang and Jabung Working Area. The Jatibarang pilot project, run by national oil
company Pertamina in cooperation with the Japan Organization for Metals and Energy Security, implements
the huff and puff recovery method where CO2 in liquid state from a CO2 plant in Subang is transported
through ISO tank trucks 99.5 km away and injected into the Pertamina-operated Well JTB-161 in Jatibarang
Working Area. The CO2 injection started on 25 October 2022 with 80 tonnes per day injection rate at 500 pound
per square inch (psi).

During the injection phase, CO2 remains immiscible and bypasses oil, either by displacing moveable water
or oil. After the injected CO2 reaches 200 tonnes, the injection is stopped. The injected CO2 then enters a
soaking period of 1 week, during which the oil swells and intermediate hydrocarbon is extracted by the CO2.
Once the soaking period is deemed sufficient, the well is opened and the operation runs for 1–3 months. Oil is
produced as a result of CO2 injection. This process occurred repeatedly.

The pilot test was to confirm that the well and reservoir respond well to CO2 injection as indicated in the
simulation of the planned design. As reported, the injection of CO2 in the JTB 161 well almost tripled production.
Pertamina is to test another well at the same area before commercial production starts. Read more….

1
‘We invite ACN Members and Supporting Members to write news, article, or op-ed to be published in the
ACN website’.
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Study on the Potential for the Promotion of Carbon Dioxide Capture, Utilisation,
and Storage in ASEAN Countries: Current Situation and Future Perspectives
Edited by Shigeru Kimura (ERIA), Kikuko Shinchi (Mitsubishi Research Institute, MRI), Shunsuke
Kawagishi (MRI), and Ulysses Coulmas (MRI)

This ‘Study on the Potential for the Promotion of Carbon Dioxide Capture, Utilisation,
and Storage in ASEAN’, uses a multi-aspect survey approach. The study covers
findings on recent trends in policies, technologies, and business development from
countries with experience in Carbon Dioxide Capture, Utilisation, and Storage (CCUS).
It also looks into the potential for CCUS development in the Association of Southeast
Asian Nations (ASEAN) and the East Asia Region. Based on discussions held at the 3rd
East Asia Energy Forum, the report reiterates the important role CCUS can play in the
region to achieve both energy transition and decarbonisation objectives. It also
explores the potential and benefits of a regional collaborative approach, which is
proposed as the Asia CCUS Network to create an enabling environment for business
cases of CCUS.

DOWNLOAD PDF OF FULL REPORT

Study on the Potential for Promoting Carbon Dioxide Capture, Utilisation,

and Storage (CCUS) in ASEAN Countries Vol. II
Edited by Shigeru Kimura (ERIA), Kikuko Shinchi (Mitsubishi Research Institute, MRI), Ulysses
Coulmas (MRI), and Ayami Saimura (MRI)

This report was prepared under the Asia CCUS Network umbrella and
focuses on the cost of Carbon Capture and Storage (CCS) and the legal
framework of CCUS. To analyse the cost of CCS, we use a model case in
central Java, Indonesia with the following assumptions: a) capture of CO2
emitted from a 500MW coal power plant (ultra- supercritical) applying
chemical absorption using amine, b) transport of CO2 to the storage site
through a 50km long pipeline, and c) storage of CO2 in sandstone
formation of about 1000m. Costs of capture, transport, and storage – both
capital and operation costs – are surveyed referring to existing publicly
available literature. The cost of this model case is estimated at US$60–
US$70 per CO2 ton and 70% of the cost results from the capture of CO2.
The legal framework emphasises that deployment of CCUS will be
implemented under appropriate regulations. Hence, surveys of the
existing CCS regulations of European countries, Australia, and the United States are undertaken to come up
with appropriate CCUS regulations for the Asia region. Finally, as an important regional policy framework,
this report suggests an Asia Collective CCUS Initiative to start design of a business model of the CCUS value
chain in the Asia region.
DOWNLOAD PDF OF FULL REPORT

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C. Research Study 2022-2023

ACN Research Studies 2022-2023

Asia CCUS Network (ACN) Secretariat and advisory members had selected five research studies related to
Carbon Capture Utilisation and Storage (CCUS) particularly in Asia region. CCUS development is now
considered a crucial technology to achieve clean energy transition targets. Deep understanding on CCUS
from technical, financial and policy perspectives will be beneficial to accelerate its development.

There are five titles of the ACN Research Study 2022-2023 will be developed by the Research and Innovation
Agency (BRIN), Indonesia, and the Global CCS Institute (GCCSI). Each topic is outlined here:

1. Estimation of Basin-Scale CO2 Storage in Indonesia

- To perform a geological storage assessment based on a set of criteria developed specifically
to Indonesia sedimentary basins and estimate the storage capacity available
based on the existing data, through:
➢ Identify sedimentary basins
➢ Review characteristics of sedimentary basins
➢ Qualitatively or quantitavely rank of sedimentary basins in order of CO2 storage suitability
➢ Storage capacity estimation
2. Estimation of CO2 Storage Potential in ASEAN Region
- Create a targeted strategy for CO2 storage development in this region focusing on potential CCS
networks
- Characterise storage prospects (onshore and offshore) for the development of storage appraisal
programmes
3. Establishment of Asia CCS/CCUS Value Chain as a Collective Framework in Asia Region
- Convening an ASEAN Storage Group and holding a series of in-person workshops to gather
information on the current state of knowledge of geological CO2 storage resources
- Engaging with a network of ASEAN regulators and policymakers through a series of workshops to
inform a regulatory gap analysis and to assist in describing potential institutional frameworks
necessary to support CCUS hubs and networks
4. Study on Legal & Policy Framework for Deployment of CCUS in Asia Region
- The role of existing national legal and policy frameworks for supporting CCUS deployment
- Identification and consideration of discrete policy, legal and regulatory issues for CCS, including
those specific to the region.
- Consideration of an appropriate legal and policy framework for countries in the ASEAN region
5. Study on Financial Framework for Deployment of CCUS in Asia Region
- Forecast the required investment for the deployment of CCS in the Asia Region
- Identify the roles of public and private finance for CCS projects
- Identify the financial risks for private sector debt financing and equity investments in CCS projects
- Understand the role that a CO2 market price will have in the Asia region and how this price will
affect CCS projects

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D. List of Registered Members
(as of January 2023)
Advisory Members
▪ Department of Industry, Science, Energy and
Resources, Australia
▪ Ministry of Economy, Trade, and Industry, Japan
▪ Department of Energy, Philippines
▪ Ministry of Industry and Trade, Viet Nam
▪ Ministry of Mines and Energy, Cambodia
▪ Ministry of Energy and Mines, Lao PDR
▪ Energy Market Authority, Singapore
▪ Ministry of Energy and Mineral Resources, Indonesia
▪ Energy Commission of Malaysia, Malaysia
▪ Ministry of Energy, Thailand
▪ Ministry of Science and Technology, India
▪ Oil and Gas Planning Department, Ministry of
Electricity and Energy, Myanmar
▪ Department of Energy, United States of America
Supporting Members
▪ Toyota Tsusho Corporation
▪ IHI Corporation
▪ IHS Markit
▪ JOGMEC
▪ PT. PERTAMINA (PERSERO)
Read more.
Regional/ International Organizations
(19 members)
▪ International Finance Corporation
▪ International Association for Hydrogen Energy (IAHE)
▪ Oil and Gas Climate Initiative (OGCI)
▪ Clean Energy Ministerial (CEM) CCUS Initiative
Read more.
D. Recommended Links
1. IEA’s Report on CCUS in Southeast Asia:
https://www.iea.org/reports/carbon-capture-
utilisation-and-storage-the-opportunity-in-southeast-
asia
2. JOGMEC’s New Website ‘CLEAN FUTURE
ENERGY’: https://mirai.jogmec.go.jp/en/

Academia/ Research Institute 3. National Energy Technology Laboratory

(41 members) Training Resources:
https://www.netl.doe.gov/LCA/co2u/Training
▪ Universitas Indonesia
▪ PARTIDO STATE UNIVERSITY
▪ Energy Studies Institute
▪ Pandit Deendayal Energy University
▪ Kyushu University
▪ Environmental Law Centre of Meiji University
▪ R & D Institute, Hokkaido Electric Power Co., Inc.
▪ Read more.

Finance – Banking (13 members)

▪ Sumitomo Mitsui Banking Corporation

▪ Japan Bank for International Cooperation (JBIC)
▪ Citigroup Global Markets Japan Inc.
▪ MUFG Bank, Ltd.
▪ SPARX Group Co., Ltd.
Read more.

Private – Public (175 members)

▪ Toyota Tsusho Corporation
▪ Eni
▪ Osaka gas

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E. Upcoming Events (Knowledge Sharing Conference, CCUS Workshop and Capacity Building)
Date & time will be announced later

▪ The 7th ACN Knowledge Sharing Conference ‘CCS Screening in Southeast Asia using Regional
Database’ organized by ACN Secretariat in collaboration with JOGMEC (Japan Oil, Gas and Metals
National Corporation), Thursday, 16 February 2023 at 13:00 – 14:15 (UTC+7), 15:00 – 16:15 (UTC+9)

▪ ACN capacity building trainings ‘USGS’s training on CO2 storage in ASEAN region’

‘We invite ACN Members and Supporting Members to be a speaker to share your expertise and
knowledge in our next ACN Knowledge Sharing Conferences’.

Asia CCUS Network Secretariat

Economic Research Institute for ASEAN and East Asia (ERIA)

energy@eria.org

(+62-21) 57974460
Sentral Senayan II, 6th Floor, Jl Asia Afrika No. 8, Gelora Bung Karno, Jakarta Pusat, 10270
Indonesia

https://www.asiaccusnetwork-eria.org/

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