Research Report

Study on the Potential for Promoting Carbon Dioxide Capture, Utilisation, and Storage (CCUS) in ASEAN Countries Vol. II

Shigeru Kimura, Kikuko Shinchi, Ulysses Coulmas, and Ayami Saimura

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.

Chapter 1 Technical Workshops

Chapter 2 A Model Case Study: CCUS Cost Estimation

Chapter 3 Regulatory and Policy Study

Chapter 4 Regional Cooperation Concept

Chapter 5 Workshop on the Model Case Study

Chapter 6 Conclusions and Recommendations

Shigeru Kimura, Special Adviser to the President on Energy Affairs, Economic Research Institute for ASEAN and East Asia (ERIA)

Kikuko Shinchi, Project Manager, Senior Researcher, Mitsubishi Research Institute (MRI)

Kuniyuki NIshimura, Senior Researcher, MRI

Ulysses Coulmas, Researcher, MRI

Ayami Saimura, Researcher, 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.

Chapter 1 Technical Workshops

Chapter 2 A Model Case Study: CCUS Cost Estimation

Chapter 3 Regulatory and Policy Study

Chapter 4 Regional Cooperation Concept

Chapter 5 Workshop on the Model Case Study

Chapter 6 Conclusions and Recommendations

Shigeru Kimura, Special Adviser to the President on Energy Affairs, Economic Research Institute for ASEAN and East Asia (ERIA)

Kikuko Shinchi, Project Manager, Senior Researcher, Mitsubishi Research Institute (MRI)

Kuniyuki NIshimura, Senior Researcher, MRI

Ulysses Coulmas, Researcher, MRI

Ayami Saimura, Researcher, MRI