JAKARTA (Reuters – Indonesian state owned oil and gas company PT Pertamina, and American energy giant Exxon Mobil Corp (NYSE 🙂 and a deal were signed Tuesday that will look into ways carbon capture storage can be used in a Southeast Asian country.

During the two week COP26 summit held in Glasgow, Scotland, a Memorandum of Understanding (MoU), had been signed.

ExxonMobil released a statement saying that both firms had reached an agreement to “evaluate large-scale deployments of low-carbon technology in Indonesia”,

Joe Blommaert president ExxonMobil Low Carbon Solutions stated, “We’re evaluating large scale carbon capture and stored projects that could have the greatest impact in high-emitting areas around the world.”

There are many opportunities for growth in Indonesia, and across Southeast Asia.

CCS captures and preserves the emissions underground, but it is still in its early stages of commercialization.

Exxon Mobil wants to create CCS hubs throughout Asia. It also proposes to have one in Southeast Asia similar to the Houston CCS facility.

CCS supporters see CCS as essential in helping to meet net zero emissions, and crucial to unlock large-scale economic hydrogen production.

However, critics claim that CCS will prolong the lives of polluting fossil fuels.

Indonesia, which is eighth in carbon emissions, has recently announced its aim to achieve net zero emission by 2070-2060, or earlier.

Nick Widyawati, Pertamina CEO, stated in separate statements that “the use of CCS technology forms part of Pertamina’s energy transition into clean energy.”

Dwi Soetjipto (head of Indonesia’s downstream regulator SKK Migas) said last month that the mega Cepu Block in East Java was a possible location for ExxonMobil’s CCS Project.

Soetjipto declared Tuesday, “This CCS Collaboration is a Step towards Making It Happen.”