Carbon Capture & Storage for Indonesia Coal-Power Plant: Opportunity or Gimmick?

In 2023, coal-fired power plants (CFPPs) were responsible for approximately 85% of the total CO2 emissions from power generation. The Indonesia Electricity Company (PLN) currently supplies 60% of the coal mix used in Indonesia's electricity production. As part of the energy transition agenda, PLN is actively exploring low-carbon technologies for existing power plants, including carbon capture. Indonesia has significant carbon storage potential, with many suitable locations near CFPPs. A total of 577.62 gigatons of carbon capacity has been identified across 20 sites. This presents an opportunity to implement carbon capture and storage (CCS) in existing CFPPs. The study examined both technical and financial aspects of CCS installation, including capture, transportation, and injection. Among the various technologies, post-combustion with an amine scrubber emerged as the most viable option for existing CFPPs. However, the analysis revealed that CCS would more than double the cost of electricity. Storage costs dominate, accounting for approximately 40% of the overall CCS cost. To avoid profit loss, an incentive value exceeding $105 per ton of CO2 injected is necessary. In conclusion, the development of CCS for CFPP immediately is not viable. Meanwhile, the development of CCS for CFPP could present an opportunity in the future if the electricity generation composition becomes saturated with VRE (variable renewable energy) and the source of new dispatchable RE runs out.