JERA Co., Inc.
JGC Holdings Corporation
JERA, JGC Holdings, and the Indonesian State Electricity
Company (PLN) Announce the Launch of a Joint Study Related to Carbon Captureand Storage (CCS) Projects at Thermal Power Plants
TOKYO ― 19 October 2023 ― JERA Co., Inc. (“JERA”), JGC Holdings Corporation(“JGC”), and the Indonesian state electricity company (“PLN”) have today signed amemorandum of understanding (“MOU”) committing to the launch of a joint study aimed at
the introduction and commercialization of carbon capture and storage (CCS*) projects atthermal power plants owned by PLN subsidiaries in the Republic of Indonesia (“Indonesia”).
The government of Indonesia has established the goal of achieving carbon neutrality by 2060,
so decarbonization of the electricity sector, which accounts for about 40% of the country’s
CO2 emissions, is an important issue.
The MOU stipulates that the three companies will consider the introduction of CCS at theIndramayu Coal-Fired Power Plant and the Tambak Lorok Gas-Fired Power Plant, both
owned by PLN subsidiaries, studying their potential as CCS projects by evaluating technicalissues and business feasibility, investigating legal regulations, and identifying issues.
JERA has overall responsibility for the joint study and will conduct market research related
to CCS projects, evaluate feasibility, and research the legal system, while JGC will consider
CCS storage technologies and estimate costs. PLN will provide data related to the power
plants where the introduction of CCS is being considered and coordinate with related localorganizations.
Furthermore, the study was selected for, and will be subsidized through, the Ministry ofEconomy, Trade, and Industry’s “Feasibility Study Project for Overseas Development of HighQuality Energy Infrastructure (Projects to Study the Promotion of Overseas Infrastructure
Development by Japanese Corporations)” for fiscal 2023 (2 August 2023 METI press release).
JERA has been working to support Indonesia’s energy transition, carrying out studies andproviding other support aimed at drawing up a decarbonization roadmap for the country’spower sector (25 November 2021 press release). As a global company providing cuttingedge solutions to the world’s energy issues, JERA contributes to healthy growth anddevelopment in Indonesia, Asia which includes e.g. Viet Nam, Philippine, Bangladesh andThailand, and the world by offering a platform for supplying clean energy through a
combination of renewable energy and low-carbon thermal power.
The JGC Group is working toward the commercialization of CCS in Indonesia, Malaysia,
Thailand, and other countries in Southeast Asia. Based on the group’s wealth of experiencein constructing CCS facilities, in its medium-term business plan Building a Sustainable
Planetary Infrastructure 2025 JGC has committed to expand its business in the energy
transition field, including CCS, and will contribute to achieving a decarbonized society andpromoting a circular economy by offering a wide range of solutions.
PLN, a state-owned electricity company, plays a crucial and predominant role in ensuring astable power supply for all of Indonesia. As the Indonesian government stated to achieve net
zero emission by 2060, PLN has also announced enhancement of net zero emission and low
carbon emission fuel business.
* Also known as “carbon dioxide capture and storage.”