This presentation was given as part of the CCS Ready workshop which was held in association with the 6th Asia Clean Energy Forum (20 – 24 June, Manila) The workshop discussed the range of measures and best practices that can be implemented to prompt the design, permitting and construction of CCS projects when designing or building a new fossil fuelled energy or industrial plant. The workshop hosted participants of the Asian Development Banks’ Regional Technical Assistance Program who updated the group on the outcomes of their individual projects. This presentation provides an update on the current project being undertaken under the Asian Development Bank’s Regional Technical Assistance Program which aims to conduct an analysis of the potential for CCS, culminating in a road map for a CCS demonstration project in Indonesia.

1. Carbon Capture and Storage:
Prospect & Development in Indonesia
R & D Centre for Oil and Gas Technology
“LEMIGAS”
Manila, 23 June 2011

2. Outline
 Background
 Indonesia’s Pathway in CCS
 Prospect of CCS Deployment
 CCS Development in Indonesia
 Main Issues and Challenges on CCS Deployment in
Indonesia
 Basin Assessment and CO2 Storage Capacity Estimation
in Depleted Reservoirs
 Selected Area for ADB Technical Assistance for CCS
 Conclusions
Page  2

3. Background
• GOI’s non-binding commitment to reduce
country emissions to 26% in 2020
• Current efforts are considered still
insufficient to achieve CO2 emissions
abatement target in 2020
• energy mix improvements
• the switch to less-carbon intensive
fuels
• renewable resources deployment
• It is imperative for Indonesia to
 Energy mix improvement for 2025 is still investigate options for CCS
dominated by fossil fuel
 As a result of objective function of Energy mix
improvement :
The energy sector can achieve 950 Mt CO2
reduction in 2025 from 1150 Mt in BaU
Page  3

4. Indonesia’s Pathway in CCS
1. Preliminary studies on CCS-EOR in East Kalimantan & South
Sumatra (2003 – 2005)
2. Joint study on CCS potential with industries:
• Sojitz & Mitsubishi (2005); Total Indonesie (2007); Shell (2008);
and KIGAM (2010)
• MoU with METI-Japan CCS (2010)
3. Became a founding member of Global CCS Institute
(GCCSI) led by Australia (April 2009)
4. Joint Study with UK Government (November, 2009)
5. Other Cooperation:
• IEA - CCS Roadmap and Establishing of National Regulatory
Framework
Page  4

5. CCS-EOR in East Kalimantan
1. 10 reservoirs are suitable for CO2-EOR
2. Screening Reservoirs from MMP
• MMP > current reservoir pressure
• 3 reservoirs above 0.8 psi/ft were eliminated (above pf)
3. Rule of Thumb Method:
• Potential Oil Recoveries of 3.6 – 7.2 MMSTB
• Sequestration volumes of 0.5 – 2.1 Million tons
4. The Results of Laboratory Study:
• The result of CO2 injection at 3000 psig reveals that the recovery factor
was 93.3% OOIP after 1.2 PV CO2 injected.
5. The Simulation Results:
• Continues CO2 injection
− Potential oil recoveries of 2.6 – 3.3 MMSTB
− Sequestration volumes of 4.7 – 4.9 Million tons
• 1 : 1 WAG
− Potential oil recoveries of 2.4 MMSTB
Page  5 − Sequestration volumes of 2.2 Million ton

6. Joint Study with UK Government
 A first comprehensive study to identify CCS potential deployment
in Indonesia
 Title: Understanding Carbon Capture and Storage Potential In
Indonesia
 Study Objective: To develop an understanding of the
requirements associated with deploying CCS in Indonesia by
addressing technical, commercial and regulatory aspects of CCS
deployment.
 CCS Study Working Group: Ministry of Energy and Mineral
Resources (BALITBANG/LEMIGAS) , State Ministry of Environment,
Shell, PLN, World Energy Council, and supported by UK Embassy in
Jakarta
 Status: Completed November 2009. Full report available at
http://www.worldenergy.org/news__events/news/2746.asp
Page  6

7. Possible CCS Scheme in Indonesia (Power Plants)
Bangko Tengah Muara Jawa
Steam Coal Power Plant Steam Coal Power Plant
4 x 600 MW 2 x 100 MW
Emissions Projection up to Emissions Projection up to
2018: 11.5 MtCO2 2018: 10.6 MtCO2
60 km
60 km
East Kalimantan
Onshore
South Sumatera U 15 km
Onshore
129.7 km
GU
Jawa Sea Offshore
U Subang
Gas Processing Plant
Emissions Projection up to
2018: 6.2 MtCO2 Legend:
320 km
300 km Power Plant
35 km
Gas Processing Plant
Muara Tawar 2,3,4 Indramayu Storage Location
Combined Cycle Power Plant Steam Coal Power Plant
3 x 750 MW 2 x 1000 MW Pipeline
Emissions Projection up to Emissions Projection up to
Note: Unscaled Map
2018: 26.6 MtCO2 2018: 65.8 MtCO2
Page  7

8. Existing CO2 Capture in Indonesia
Full Capacity
Gundih CO2 Production From
Operational Capacity Bontang Area : +
30.000 T/D
Merbau
Cilamaya
Subang
MMSCFD
0 50 100 150 200
Source: Modified from PERTAMINA
Other PERTAMINA’S Planned CO2 Removal Plant
 East Natuna:  2.4 BCSFD CO2
 Cepu:  72.5 MMSCFD CO2
 Bontang LNG Plant:  30.000 tD CO2
Page  8 Page │ 8
LEMIGAS

9. CCS Development in Indonesia
2006 2007 2008 2009 2010 2011
.CO2 .
Sequestration
on Geological
CO2
. .
Sequestration
Laboratory
and
Reservoir
Worksheet . .
Screening CO2
Sequestration
Basin Merbau Field
Assessment Demo Project
and CO2 Proposal
on Saline
Storage Simulation Potential Storage
Aquifer
Study of Capacity
CO2 Estimation in
Injection in Depleted
Depleted Reservoirs
Reservoir
Page  9

10. CCS Development in Indonesia
ROADMAP of CCS R&D
Year 2010-2014
Year
NO Activity
2010 2011 2012 2013 2014
I. CO2 EMISSION FROM ENERGY SECTOR
1.1 CO2 Emission from Energy Sector  
1.2 Impact of Energy Effieciecy and Renewable Energy  
II. CARBON TRADE
2.1 Carbon Trade Mechanism 
2.2 CCS as CDM Activity 
III. LEGAL AND REGULATORY FRAMEWORK ON CCS
3.1 Existing Legal and Regulatory Framework from Developed Countries 
3.2 Establish National Regulatory Framework 
IV. CCS Potential on Geological Formation
4.1 CO2 Emission Source  
4.2 Capture and Transportation Technology   
4.3 CO2 Storage on Depleted Oil and Gas Reservoirs   
4.4 CO2 Stirage on Deep Saline Aquifers and Coalbed Methane 
4.5 CCS Cost Unit 
4.6 Risk Assessment 
Page  10

11. Prospect of CCS Deployment
• New build Coal-fired power plants as a target from large point
sources of CO2 emissions
• The utilization of CO2 in petroleum industry particularly for
enhanced oil recovery (EOR)
• Enabling development of highly contaminated gas fields e.g.
Natuna D alpha
• In line with Government non-binding commitment to reduce
country emissions to 26% in 2020.
Page  11

12. Main Issues and Challenges on CCS Deployment
• No public awareness of CCS and lack of technical capacity
• CCS costs must be reduced
• No Legal and Regulatory Frameworks
• Need accelerating investment on R&D
• Demonstration projects are needed in developing countries
funded by international sources
Page  12

13. Basin Assessment (Site Selection)
Developing Screening Criteria for Specific Indonesian Sedimentary Basins
Modified from Bachu, 2003 and CO2CRC, 2009
Increasing CO2 Storage Potential
CRITERIA CLASSES
1 2 3 4 5
On/Off Shore Deep Offshore Shallow Offshore Onshore
Warm Cold
Geothermal Moderate
(>400C/km) (<300C/km)
Maturity Unexploration Exploration Development Production Basin
Extensive
Moderately Faulted
Fault Intensity Faulted and Limited Faulting and fracturing
and fracture
fracture
Tectonic Setting For Arc Back Arc Platform Deltaic Rift Vally
Shallow Intermediate Deep
Depth (meter)
(<1,500m) (1,500-3,500 m) (>3,500 m)
Size Small Medium Large Giant
Hydrocarbon
None Small Medium Large Giant
Potential
Easy
Accessibility Inaccessible Difficult Acceptable
Page  13 Page │ 13
Infrastructure None Minor Moderate Extensive
LEMIGAS

14. Storage Capacity Estimation in Depleted Oil and Gas Reservoirs
Simplified Carbon Sequestration Key assumptions
Leadership Forum (CSLF) Methodology
The Volume previously occupied by, by
MCO2  CO2r UR  Seff  B and large the produced hydrocarbons
becomes available for CO2 storage
Where: Reservoirs are not flooded (Secondary
MCO2 = CO2 storage capacity of the aquifer & tertiary recovery)
CO2r = CO2 Density at P & T Reservoir Reservoirs are not in hydrodynamic
UR = Ultimate Recovery contact with an aquifer
Seff = Storage Efficiency Factor
Density was calculated using EOS
B = Formation Volume Factor
Span & Wagner
Np/Ult ratio ≥ 55%
Source: Bachu., et al, 2007 & Poulsen., et al. 2009
Page  14 Page │ 14
LEMIGAS

15. Selected Area for ADB Technical Assistance for CCS
South Sumatera
Specific Area for Demonstration Project
 Merbau Gas Field
 Merbau CO2 Removal Plant
Rationale
• Large presence of the industrial and power sector in South Sumatera Large potential and
various CO2 sinks (depleted hydrocarbon reservoirs, and coal seams)
• South Sumatera has low density population
• Existing infrastructure
• Stable geological formations from seismic and tectonic activity
• South Sumatera sedimentary basin has high suitability for CO2 storage
Page  15 Page │ 15
LEMIGAS

16. Identified Large Stationary CO2 Sources in South Sumatera
Oil and
Gas
Industry
Coal Mining Refinery
Fertilizer
Power Plant Cement Plant
Plant
Paper Plant
Gas
Processing
Plant
Page  16 Page │ 16
LEMIGAS

17. Methodology for Calculating CO2 Emissions
2006 IPCC Guidelines for National Greenhouse Gas Inventories
44
■ Fuel Combustion: CO2  Q  EF 
12
44
■ Industry : CO2  Natural Gas  Carbon Content 
12
Shell Guidance 2006
■ Fuel Combustion : Carbon Mollar Mass 44
CO2  Fuel Used  
Mollar Mass Carbon 12
API Compendium 2009
■ Flare: 44
CO2  Fuel Used  WT %Cmixture 
12
Page  17 Page │ 17
LEMIGAS

18. Candidate Field for CO2 Storage: Merbau Field
Owner : PERTAMINA
Discovery : 1975
Delineation : 1980
Total Well : ~17 Wells
Main Reservoir : Baturaja Formation (BRF)
Res. Depth : (1650 – 2100) m TVD
Aver Res. Thick : 70m
Average Porosity : 11% (5 – 15)%
Average Sw : 28% (10 – 35)%
Average Pressure : (2750 – 2850) psi at 1800 m tvd
Average Temperature : (260 – 270)0 F
OGIP (BSCF) : 353.577 (Status 2005)
RESERVE (BSCF) : 282.861
Current Production : 300 MMSCFD
Page  18 Page │ 18
LEMIGAS

19. Conclusions
• Deployment of CCS in Indonesia is aligned with national
energy policy and GoI’s commitment to reduce 26% country
emission.
• This pre-feasibility analysis for a demonstration CCS project
will culminate in the development of a roadmap for CCS
demonstration.
• CCS in conjunction with CO2-EOR will be the main highlight
in this project
• Other CCS key elements such as legal and regulatory
framework and socio-economic will also be assessed.
Page  19

20. Thank You
Agency of R&D for Energy and Mineral Resources
R & D C e n t r e f o r O i l a n d G a s Te c h n o l o g y
Republic of Indonesia
LEMIGAS
upasarai@lemigas.esdm.go.id
sugihardjo@lemigas.esdm.go.id
utomo@lemigas.esdm.go.id
Page  20