SG, Indonesia ink LOI on carbon capture and storage collaboration

The two countries will work on a legally binding bilateral agreement.

Singapore and Indonesia signed a letter of intent (LOI) to collaborate on cross-border carbon capture and storage (CCS).

The collaboration follows Indonesia’s decision to regulate CCS by allowing CCS operators to set aside storage capacity for international carbon dioxide.

CCS works by capturing, transporting, and storing carbon dioxide produced as a byproduct of activities such as power generation. It is a key decarbonisation pathway to achieve net zero emissions.

Under the LOI, a working group comprising Singapore and Indonesia government officials will work on a legally binding bilateral agreement enabling cross-border transport and storage of carbon dioxide between the two countries.

"With this LOI, Singapore and Indonesia can become the pathfinders to catalyse deployment of cross-border CCS projects in Southeast Asia,” Keith Tan, Deputy Secretary (Industry) of the Ministry of Trade and Industry Singapore, said.

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