INDIVIDUAL PAPER

MANAGEMENT OF INNOVATION, TECHNOLOGY AND

ENTREPRENEURSHIP FOR EXECUTIVE

Created by

Name
NIM
Course Code
Facilitator

: Muhamad Fudolah
: 29115401
: MM5026
: Agus P. Sari

School of Business and Management ITB

Jakarta

THE INDONESIA CARBON CAPTURE STORAGE

FROM STEAM COAL POWER PLANT

Picture 1. Illustration of Carbon Capture from Power Plant

1.1 Definition of CCS-Readiness

CCS-readiness is a planning tool used to provide a structured means of assessing a power
plant design in order to ensure that there are no insurmountable barriers to subsequent
retrofitting of the complete CCS train at some time in the future when CCS implementation
may be required due to changed economic or regulatory circumstances. CCS-R involves
capture-readiness, transport-readiness and storage-readiness to ensure that any potential
barriers to successful implementation of a complete CCS scheme are identified and
resolved at an early stage.
For the power plant component, capture-readiness requires a technically and economically
feasible CO2 capture outline design to be established. The power plant layout should
allocate space and connection facilities for the possibility of future addition of CO2 capture
equipment.
For transport-readiness, a technically and economically feasible transport method needs to
be established. A practical transport route with accessible rights-of-way between the power
plant location and the storage location should be identified.
For storage-readiness one or more storage sites need to be identified that are technically
capable of, and commercially accessible for, timely geological storage of the large volumes
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of captured CO2 for the projected lifetime of the CCS scheme. Adequate capacity,
injectivity (i.e., adequate porosity to permit a high rate of injection of CO2 without fracturing
the formation), and CO2 storage integrity should be shown to exist at the storage site. Any
potentially conflicting land use issues should be identified or all CCS stages, the
requirements for environmental, safety and other approvals need to be identified. Public
awareness and engagement activities need to be considered. The CCS readiness status
should be regularly reviewed, improved and documented over time.
The energy scene in Indonesia is described, identifying the need for rapid expansion of
electricity generation infrastructure and the energy resources available to meet that need.
Indonesias commitment to addressing CO2 emissions are described, which highlight a role
for CCS. The issue of the potential impact of exploitation of the Natuna gas field on
Indonesias CO2 emissions inventory is also introduced.
The selection of candidate lignite-fired coal power plants in West Java and South Sumatera
for CCS-R assessment is explained and the key features of those nominal host power
plants are listed. Scenarios that would give rise to the need to implement CCS are
discussed and the rationale for the assessment scenarios is set out. A comparison with the
alternative use of geothermal or natural gas-fired power generation as a means of reducing
CO2 emissions is quantified.
The technology for post-combustion capture of CO2 with conventional MEA is described
and assessed. Processes for preconditioning of flue gas are discussed and evaluated.
Processes for conditioning and compression of the captured CO2 are also discussed.
Alternative CO2 capture processes are investigated. Operating cost parameters and capital
cost data for elements of the CO2 capture process are listed.
1.2 CO2 in Indonesia
The main composition in Energy Mix Target by 2025 conoixts mainly of natural gas, oil and
coal in which has some improvements by reducing oil dependency, increasing the role of
renewable energy, and reducing energy elasticity to below one. However, projected CO2
emissions generated from this policy is still grows since introduction of large scale low
carbon technologies were not entered yet into the national energy path. CO2 emissions
equivalent from energy sector is accounted for 9% (275 MtCO2e) from total country
emissions or the second largest emitter after forestry, with average growth of around 6.6%
per-year from 1990 to 2005 (CCS WG, 2009). The main contributors to those emissions
particularly were industries, power generations and transportations.
Although for Indonesia it is not mandatory to reduce its country emissions but the
government has pledged to achieve a non-binding commitment to reduce country
emissions by 26% in 2020 and this target would increase to 41% if international financing is
available. To respond this commitment the government ratified Environmental Law
No.32/2009 which rules about the protection and management of the environment and
entered preservation of function within the atmosphere of adaptation and mitigation to
climate change.
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There is no single solution that will limit CO2 emissions, given the rising demand for energy
and the worlds continued reliance on fossil fuels. Current government efforts such as
energy mix improvements, the switch to less-carbon intensive fuels and renewable
resources deployment are considered still insufficient to achieve CO2 emissions abatement
target in 2020. Therefore, correspond to governments target Carbon Capture and Storage
(CCS) offers great potential for reducing CO2 emissions from large point source emitters,
such as coal-fired power plants and oil and gas processing plants in Indonesia. CCS
systematically comprised three sequential activities ranging from capturing the CO2 from
the sources, then transporting it to the storage sites and eventually injecting the CO2 into
the geological formation.
There are multiple industrial sources of CO2 in Indonesia, from power stations, oil and gas
processing plants, steel and ammonia plants and cement factories. Scouting work has
revealed that most industrial sources are located in Jawa and Sumatra, and to a lesser
extent in Kalimantan and Sulawesi. Hence, these islands (high graded areas of interest) will
be the focus for further CCS deployment. Total industry generated CO2 emissions from
power generation flue gas and gas processing are estimated to about 80 million tonnes per
annum, of which oil and gas processing is responsible for about 17.5 tonnes per annum.
The power generation sector is expected to be the main contributor to future CO2
emissions in Indonesia.
1.3 Projected CO2 emission
The increased coal-based generation contributes to increased CO2 emissions. While
Indonesia has considerable greenhouse gas emissions from forestry and land use change,
CO2 emissions from fossil fuel use are rising. In 2013, 523 million tonnes of CO2 were
emitted from the consumption of fossil fuels, ranking Indonesia as the ninth largest CO2
emitting country in the world -- though this is still much less than China, USA, Japan and
India (BP, 2014). The power sector alone would emit 201 million tonnes of CO2 in 2015,
and is projected to emit 383 million tonnes by 2024 in line with the projected power
generation mix in Indonesias power sector to 2024 (RUPTL, 2015). By the year 2024, coal
will account for 87 percent of the power sector emissions (RUPTL, 2015). CO2 emissions
from the entire country are expected to reach 1,150 million tonnes of CO2 per year by 2025
unless the government takes action to reduce emissions.
CCS provides an opportunity for the government to meet both its energy needs and its
nonbinding target to reduce CO2 emissions by 26 percent by 2020. Indonesia signed the
Kyoto Protocol in 1998 and ratified it in 2004 through Law No. 17/2004. In 2011, the
government issued Presidential Decree No. 61 of 2011 regarding the National Action Plan
on Greenhouse Gas (GHG) Reduction (RAN-GRK) of which the objective is to be used as
guidance to various institutions in carrying out a coordinated and integrated effort to tackle
climate change (Survanti, 2009).
GHG emission reduction through CCS in the power sector is not part of the RAN-GRK. The
largest cut of emissions in RAN-GRK is from the forestry and land use sectors, with only a
very modest CO2 reduction target for the power sector through small hydropower and
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geothermal power plant developments. Presidential Decree No. 61 is supported by another

Presidential Decree, No. 71 of 2011, regarding the National GHG Inventory. The
Government of Indonesia was recognized as an important country for global climate policy
discussion as it hosted the thirteenth Conference of the Parties of the United Nations
Framework Convention on Climate Change (UNFCCC) meeting in Bali. In 2008, Indonesia
unilaterally pledged by 2020 to cut energy sector emissions by 26 percent, and by up to 41
percent if supported by the international community.
According to the International Energy Agency (IEA), CCS is part of the global lowest-cost
greenhouse gas (GHG) mitigation portfolio. Without CCS contributing a fifth of the
necessary emission reductions, the global cost of reducing GHG emissions would rise by
70 percent.
1.4 Need for CCS
One way to meet the GoIs goal of improved energy supply and security, while also
reducing CO2 emissions, is for future coal-fired power plants to include CCS. As a
government-owned utility contributing the most to national electricity capacity, PLN has an
important role to play in leading the way in Indonesia. Investigating the implications of
having CCS-ready plants is an important first step. CCS-ready plants could reduce the
costs of retrofitting coal plants for CO2 capture during the 25-year life span of a typical coal
plant with likely extension for another 20 years. Investment decisions made in todays
uncertain environment need to consider the full range of future conditions under which the
plant may operate. Retrofitting CCS-ready coal plants with CO2 capture equipment any
time during their life could be significantly less expensive than attempting to retrofit noncapture-ready coal plants. Thus, designing plants to be CCS-ready could save PLN and
IPPs significant costs if the regulatory and/or economic environment changes.
The larger plant, on the north coast of West Java, comprises 2 x 1000MWe (megawatts of
electricity) ultra-supercritical (USC) units.9 Under full operational conditions, with 90 percent
CO2 capture operational, the initially-estimated quantity of captured CO2 from both units
combined would be 10.92 million tonnes CO2/year. The smaller plant in South Sumatra
would be a 1 x 600MWe unit. For the purpose of this study, the more thermally efficient
supercritical plant design has been assumed. The total annual quantity of CO2 captured at
a 90 percent CO2 capture rate would be 3.68 million tonnes of CO2 per year. Therefore,
the maximum total quantity of CO2 for which storage is required would be 14.6 million
tonnes per year for 2600 MWe of nominal electricity generation capacity.
The coastal 2000MWe host power plant in West Java will use high-Sulphur lignite and will
include seawater scrubbing of the flue gas to reduce the SO2 content to meet the
environmental criterion of 750 milligrams (mg) SO2 per Nm3 10. The smaller 600MWe
inland host power plant in South Sumatra will use lower-Sulphur lignite with high moisture
content, but will not have flue gas desulfurization. The reference host power plant design
parameters are derived from prefeasibility studies and discussion with PLN. The key
parameters used for this study are listed in table below

Location

North West Java

South Sumatera

Installed Capacity

2 x 1000 MW

1 x 600 MW

Technology

Ultra-supercritical

Supercritical

Commissioning year

2020

2022

Source of coal

Kalimantan

Mine mouth

Capacity Factor

80%

80%

Boiler Efficiency (HHV)

83.3%

76.3%

Turbine Efficiency

46.2%

44.0%

Gross Calorific Value (HHV)

3,880 kcal/kg (as received)

2600 kcal/kg (as received)

Total moisture content

Average 35%

Average 54%

Ash content

Average 5.0%

Average 6.5%

Sulfur content (dry ash free)

Average 1.8%

Average 0.86%

Annual CO2 emissions

12.13 million tCO2

4.09 million tCO2

Desulfurization technology

Seawater scrubber

None

Power plant efficiency

42.5%lhv

40.8%lhv

38.5%hhv

34.4%hhv

Coal quality

Table 1. Comparison steam coal power plant between North West Java and South Sumatera

To be most cost effective, the CO2 capture equipment would be designed to capture 90
percent of the CO2 from a flue gas stream. However, a lesser extent of CO2 capture might
be required if, for example, the legislation enabling CCS sets a reduced kgCO2/MWh
(Megawatt hour) criterion. In that event, a portion of the total flue gas stream might be
processed through the 90 percent CO2 capture plant and a portion left untreated so that, on
average, the CO2 capture fraction from the power plant is less.
Three scenarios are considered that might provide the enabling change which results in
CCS retrofit being required:
The international CO2 emissions market evolves so that participation is mandatory and
also the supply of CO2 emission reduction credits falls short of the demand so that the
internationally-traded price of carbon rises substantially to the point where
implementation of CCS becomes economic compared with buying emission rights. In
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this scenario, pursuing as much CCS as practicable would be the rational economic
choice. 90 percent CO2 capture reflects this scenario.
The Government of Indonesia (GoI), either unilaterally or in concert with other countries,
decrees that all power plants shall be subject to a maximum emission factor in terms of
kilograms (kg) of CO2 per MWh of electricity generated. 45 percent CO2 capture reflects
this scenario.
The GoI, or a financing institution, requires that CCS-readiness is taken to the next level
by requiring implementation of a commercial-scale plant to prove the technology and
provide a model for replication. 22.5 percent CO2 capture reflects this scenario.
These three scenarios correspond to the proposed CO2 capture scenarios of 90 percent
capture, 45 percent capture and 22.5 percent capture, which would be achieved by 90
percent capture being applied to all, one half or one quarter, respectively, of the flue gas
from the host power plant. Since CO2 capture equipment would comprise multiple gas
processing trains, processing a fraction of the flue gas is practical.
1.5 CCS Potential in Indonesia

Picture 2. Possible CCS Scheme in Indonesia

To achieve governments aspiring target in reducing CO2 emissions by 26% in 2020,

Indonesia can play active role in CCS because it already has CO2 sources and storage
capacity of CO2. The study conducted recently by the Indonesia CCS Working Group
(LEMIGAS et al.) in examining the possibility of CCS deployment in Indonesia has
developed several scenarios that illustrate the integration of CCS project in Indonesia, in
which some oil and gas reservoirs in South Sumatra, East Kalimantan and Natuna can be
utilized for storage of CO2. These regions are considered suitable due to geological

stability, well characterised, low population density and established infrastructure on the
surface (CCS WG, 2009).
CO2 storage in conjunction with enhanced oil recovery (EOR) or enhanced gas recovery
(EGR) is the most attractive option for Indonesia for early deployment of CCS, since it will
generate additional revenue from the produced oil and gas. Such revenue can offset the
CCS cost. Ready captured CO2 sources from gas sweetening plant constitute the early
opportunity for Indonesia to enhance CCS demonstration project. When the CCS is later
designated as CDM activity and carbon price considered attractive enough, it will likely
affect the usual gas business nowadays.
Lack of public awareness on Indonesian stakeholders leads to the reluctance to develop
legal and regulatory framework. We have to realize climate change is a societal
responsibility with the solution to be led by government. Hence, all sectors of the economy
must contribute to that solution.
There are several types of CO2 regulations commonly discussed and in operation are
namely capand-trade, command and control (mandates) and carbon tax. These policy
instruments provide an initial platform in establishing regulatory models. However, currently
there is no instrumental policy rules CCS in fully manner. Some views express that CCS
implementation in Indonesia will speed up industrialization and increase electrification ratio
(currently 64%) through construction capture ready power plants in which can avoid
higher retrofit cost in the future.
Deployment and development of CCS in Indonesia is also aligned with current energy
policy or corresponds to use extensive coal in its composition. Furthermore, it helps
enabling development of highly contaminated gas field as well for instance Natuna D Alpha
or from Java Steam Coal Power Plant. The relentless participation of Indonesia in
international climate change forum can be used to look for potential funding to demonstrate
CCS project in Indonesia.
1.6 CO2 Recommendation
Creating an enabling policy and regulatory environment
National climate policy to recognize CCS in the power sector as a means of CO2
emission reduction;
Endorsement of the CCS Road Map, which included the power sector at the national
level; and
Concerted efforts along the CCS value chain: CO2 capture, transportation and storage.
Bridging the technical and financial viability gap
Consider adding CCS-Readiness Provisions (such as space provisions and design
modifications) in the Power Purchase Agreements (PPAs) of future Independent Power
Producer power plants;
Provide policy incentives for future CCS implementation;
GoI to initiate CCS pilot and demonstration activities for the power sector; and
Power sector inclusion in the CCS Road Map.
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Awareness and capacity building

Develop an Indonesian Canter of Excellence in CCS technology that is purpose tasked to:
Build technical and economic assessment capability;
Develop technologies to suit Indonesian conditions;
Run workshops to encourage wide understanding of potential and limitations of CCS;
and
Encourage public acceptance of CCS technologies.
Regulatory Frameworks
Most of the non-technical challenges of deploying CCS evolve around the regulatory and
policy aspects. CCS deployment as a climate change mitigation effort is a recent concept
and therefore many of the supporting policies are yet to be developed. Deployment of CCS
also requires enabling policies to minimize risks related to policy and commercial aspects.
Partnerships between governments, international organizations and private sector are
essential where government sets the policy and provides support while private sector
develops, delivers, and deploys the technology (CCS WG, 2009). Effective partnerships on
CCS require three key elements:
First, an international financing framework that incentivize CCS as a climate mitigation
effort;
Second, clear and workable arrangements around longterm liability of the stored CO2;
and
Third, public acceptance of CCS driven by shared concerns of climate change and the
need to substantially mitigate CO2 released into the atmosphere.
The most referenced and internationally recognized methodology for greenhouse gas
accounting in the energy sectors (including CCS) is the 2006 IPCC Guidelines for National
Greenhouse Gas Inventories principles. This can be used as a starting point in drafting
regulations and policies of national and local scale, which must be operationalized on the
agreed global framework that has been approved to ensure consistency across
jurisdictions. Furthermore, this guideline need to be adapted at national and local scale with
more detailed rules and regulations and most importantly CCS must be adaptive to the
development and learning curve.
1.7 Conclusion
Proactive action from the government to create an encouraging environment to deploy CCS
is the most crucial. That such situation can be created when supported by clear procedures
and unambiguous permit mechanisms that embed CCS is a portfolio of CO2 mitigation
Furthermore, the government can initiate developing a roadmap that integrates with longterm national plan. Increase capacity building and conduct more in-depth research on CCS
should be done to get the comprehensive picture of this technology and improve efficiency
and reduce costs as well, with government support, carbon capture storage program can
improve the quality of better environmental, economic improvement and the surrounding
area can foster social programs.

1.8 Reference
1. CCS Working Group, 2009, Understanding Carbon Capture and Storage in
Indonesia.
2. IEA, 2009, Technology Roadmap: Carbon capture and storage, International Energy
Agency.
3. LEMIGAS, 2010, Understanding Carbon Capture and Storage (CCS) Potential in
Indonesia.
4. Takahashi Masaki, 2015, The Indonesia carbon capture storage (CCS) capacity
building program : CCS for coal-fired power plants in Indonesia