Indonesia and Singapore on Friday signed initial agreements to work together on cross-border trade of low-carbon electricity and cooperate in carbon capture and storage, ministers from both countries said in Jakarta.
The electricity deal reaffirmed an earlier agreement to export solar power from Indonesia to Singapore, with a group of companies planning to build plants and grid infrastructure to generate and transmit the power.
3.4 Gigawatts Of Low-Carbon Power
The memorandum of understanding signed by the two countries says they will aim to draw up policies, regulatory frameworks and business arrangements that will enable Indonesian power to be delivered to Singapore.
Indonesia expects to export 3.4 gigawatts of low-carbon power by 2035, according to a presentation slide shown by Indonesia’s energy minister Bahlil Lahadalia.
In another MOU, the two countries said they would look into drawing up a legally-binding agreement for carbon capture and storage that would allow cross-border projects to go ahead.
If successful, it will be the first such project in Asia, said Singapore government minister Tan See Leng.
Close Partnership, Mutual Trust
“Today’s signing ceremony is not just symbolic. It is a true reflection of both our shared resolve to translate our ideas into actions and to do so in close partnership and mutual trust,” the Singaporean lawmaker said in a speech, as quoted by The Straits Times.
Energy firms BP, ExxonMobil, and Indonesia’s state company Pertamina are already developing CCS projects in Indonesia.
With its depleted oil and gas reservoirs and saline aquifers capable of storing hundreds of gigatonnes of CO2, Indonesia has allowed CCS operators to set aside 30% of their storage capacity for carbon captured in other countries.
The two countries also signed a deal for the development of sustainable industrial zones on several Indonesian islands near Singapore, including Batam, Bintan and Karimun.
Bahlil said the deals could bring in more than $10 billion of investment from the manufacturing of solar panels, the development of CCS projects and potential investment in industrial estates.
(With inputs from Reuters)
