Where the impacts of the investment may be experienced.
Location: Gundih, Central Java
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International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
- Asian Development Bank (ADB)
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower or Client: Government of Indonesia
The holder of the loan, grant, or other investment.
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s): Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 16.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
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Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector
The Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector Project will establish and operate facilities to capture and sequester carbon dioxide (CO2) from a natural gas processing plant in Gundih, Central Java, Republic of Indonesia. This includes (i) capturing and preparing CO2, (ii) transporting and injecting CO2 for subsurface sequestration, and (iii) monitoring the injection site to verify permanent sequestration. The project will also develop carbon capture and storage (CCS) regulation for deploying CCS technology in Indonesia. During the 2-year pilot, the project will capture and store 20,000 tons of CO2 and increase awareness of and experience with CCS technology in Indonesia.
Indonesia is one of the largest greenhouse gas (GHG) emitters, in absolute and per capita terms. Though its GHG emissions have been largely attributed to land use and land change activities, emissions from Indonesia's energy sector are growing. CO2 emissions from the power sector are expected to increase from 110 million metric tons in 2005 to 750 million metric tons in 2030. Natural gas processing also contributes to Indonesia's GHG emissions, including when CO2 is separated from the gas and then vented, such as is done at the Gundih plant. Indonesia's Intended Nationally Determined Contribution (INDC) submission to the United Nations Framework Convention on Climate Change unconditionally pledged to reduce GHG emissions by 29% by 2030 compared to business as usual. It projects increased energy conservation and use of renewable energy and other technologies to reduce emissions without sacrificing economic growth. The INDC pledged an additional 12% reduction by 2030 conditional upon a global agreement on international assistance including technology transfer, capacity development, and financial assistance.
The energy sector will be crucial to achieve these emission reduction targets. The Ministry of Energy and Mineral Resources (MEMR) has projected 7% annual energy demand growth including a tripling of electricity demand between 2010 and 2030. The current energy mix is highly dominated by oil and coal, which constituted 46% and 31%, respectively, of total primary energy supply in 2013. Given increasing reliance on imports for oil use, Indonesia plans to reduce oil dependence and increase the share of domestic energy sources in the country's energy supply. Indonesia has been among the top five (5) coal producing countries for the last several years, and with the third largest natural gas reserves in the Asia-Pacific region, is the 10th largest natural gas producer globally. Accordingly, Indonesia's National Energy Policy envisions coal, and natural gas contributing 30%, and 22%, respectively, of the country's energy mix in 2025, complemented by renewable energy contributions of 23%.
Persistent dependence on fossil fuels means that CCS could be central to realizing emission reductions from Indonesia's energy and industrial sectors. Indonesia's geology makes it uniquely suitable for deploying CCS technology, with several depleted oil and gas fields that could serve as suitable subsurface storage sites for CO2. Considering these potential storage sites along with existing and planned large CO2 point sources suggests that CCS could account for up to 40% of the power sector's GHG emission reductions. CCS also provides a pathway for development of Indonesia's high-CO2 natural gas fields while avoiding any consequential increase in GHG emissions.
Development without harm to the environment and balance of ecosystem supported. (RPJMN 2015 2019)
Institutional capacity for mitigating greenhouse gas emissions strengthened (Indonesia's Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change).
- Asian Development Bank (ADB)
Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources (MEMR)
Migas Plaza Building Centris
Jl. H.R Rasuna Said Kav. B-5 Central
Jakarta 12910 Indonesia
ACCOUNTABILITY MECHANISM OF ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main