Pertamina Hulu Energi (PHE) is promoting the development of\ncross-border carbon capture and storage (CCS) technology to support\nAsia\u2019s decarbonisation targets. At the Japan CCUS Summit 2026 in Tokyo\non Monday (19 October 2026), the company highlighted the importance of\nlong-term investment certainty if Indonesia is to become a regional\ncarbon storage hub, Suara reported.<\/p>\n
PHE Investment and Business Development Director Dannif Utojo\nDanusaputro said successful CCS cooperation depended on more than\ngeological storage capacity. Regulatory certainty, institutional\ncoordination, transparent permitting and financial viability were also\nessential to attract emissions-intensive industries from Japan.<\/p>\n
Dannif said investors needed assurances that would support project\noperations over 20 to 30 years. Such certainty was necessary to manage\ninvestment risks and build confidence in cross-border carbon\nstorage.<\/p>\n
\u201cFor Japanese investors and emissions-intensive industries, trust is\nbuilt on three main pillars: regulatory certainty to manage long-term\nrisks; clear, coordinated and transparent institutions overseeing\npermits and cross-border monitoring; and long-term financial viability,\nor the project\u2019s ability to secure financing,\u201d said Dannif, PHE\u2019s\nInvestment and Business Development Director.<\/p>\n
As well as regulatory certainty, PHE needs commitments on carbon\ndioxide (CO\u2082) supply and readiness of carbon-capture facilities operated\nby partner companies. Consistent emissions volumes and long-term\ncommercial contracts are important to developing storage facilities.<\/p>\n
\u201cCross-border CCS projects are not merely commercial transactions for\ncarbon storage; they are long-term strategic partnerships. For a company\nsuch as Pertamina, building a CCS hub requires very substantial upfront\ninvestment in characterisation studies, well drilling, injection\nfacilities and transport infrastructure. We therefore need certainty on\nemissions volumes, readiness of capture facilities on the industry side,\nand long-term cooperation contracts,\u201d Dannif said.<\/p>\n
To strengthen investor confidence, Dannif urged project developers to\nbe transparent, build hub-scale infrastructure, improve coordination\nwith the government and establish long-term partnerships. These measures\nare intended to ensure projects are technically and commercially ready\nbefore major investment is committed.<\/p>\n
PHE aims to reach a final investment decision (FID) on the\nAsia-Pacific region\u2019s first commercial cross-border CCS project within\nthe next two to three years. The company also aims to move the project\ntowards the carbon-injection stage.<\/p>\n
According to Dannif, a successful pioneering project would\ndemonstrate that carbon dioxide can be captured in one country, safely\ntransported across borders and permanently stored under a reliable\nregulatory framework. That proof is expected to provide a basis for\nreplicating the model in future projects.<\/p>\n
\u201cIf this first project successfully proves that CO\u2082 can be captured\nin one country, safely transported across national borders and\npermanently stored under a reliable regulatory framework, the market\nwill move quickly from discussion to replication. Success will validate\nthe regulatory framework, business model, technical solutions and\npartnership structure,\u201d Dannif said.<\/p>\n
Cross-border CCS development is also aligned with the vision of the\nAsia Zero Emission Community (AZEC). Through this collaboration, Japan\ncould gain a long-term emissions-storage solution, while Indonesia could\ndevelop a low-carbon industry that creates economic value.<\/p>\n
Dannif stressed that developing a regional CCS hub would require\nsustained cooperation between companies and the government. PHE said it\nwould continue investing in sustainable operations and upstream oil and\ngas businesses in line with environmental, social and governance (ESG)\nprinciples.<\/p>\n
\u201cTogether with the government, we are committed to making Indonesia a\nreliable and trusted regional CCS hub to support Asia\u2019s decarbonisation\njourney,\u201d Dannif said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/phe-pushes-for-cross-border-ccs-projects-in-asia-pacific-1792918218", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }