Carbon Capture, Utilisation and Storage: The Opportunity in Southeast Asia
Executive Summary
Potential of CCUS in Southeast Asia
- Clean Energy Transitions: Carbon capture, utilisation and storage (CCUS) technologies hold significant potential to support clean energy transitions in Southeast Asia.
- Fossil Fuel Dependency: Since 2000, almost 90% of Southeast Asia's energy demand growth has been met by fossil fuels, making the region a major exporter of coal and liquefied natural gas (LNG).
- Emissions Reduction: CCUS can significantly reduce emissions in various parts of the region's energy systems, enabling some recently built power plants and industrial facilities to operate with reduced emissions.
Scalable Solutions and Economic Opportunities
- Decarbonization: CCUS is one of the few scalable solutions for decarbonizing heavy industries such as cement and steel, and could unlock new economic opportunities related to low-carbon hydrogen and ammonia production.
- Climate Goals: To meet climate goals, countries must accelerate the deployment of CCUS technology. By 2050, the region would need to capture up to 200 million tonnes of CO2 annually, requiring annual investments of nearly USD 1 billion from 2025 to 2030.
Growing Momentum and Projects
- Increasing Interest: Interest in CCUS in Southeast Asia has grown alongside international trends. At least seven potential projects are in early development in Indonesia, Malaysia, Singapore, and Timor-Leste.
- Singapore's Role: Singapore recognizes CCUS as crucial for its emissions reduction strategy and is actively pursuing research and international partnerships, including with Australia.
Regional Cooperation and Infrastructure
- Industrial Clusters: Targeting industrial clusters can support economies of scale and kick-start CCUS deployment. Large industrial clusters exist in Indonesia, Malaysia, Thailand, and Vietnam.
- Hub Approach: A hub approach can enable CO2 capture from multiple industrial and power facilities, promoting greater efficiencies in planning and constructing capital-intensive transport and storage infrastructure.
- Shared Infrastructure: Regional approaches to CO2 transport and storage infrastructure can build on international experience, potentially developing large, shared CO2 storage resources accessible by multiple facilities and countries.
International Experience
- Norway's Northern Lights Project: The Northern Lights CO2 transport and storage project in Norway accepts CO2 from facilities across Europe and has inspired plans for new CCUS projects, highlighting the importance of regional cooperation and shared infrastructure.
These developments highlight the growing importance of CCUS in achieving the region's climate goals and fostering sustainable economic growth.
