(Removes inaccurate references to CCS deals between Pertamina, and Exxon Mobil (NYSE:, in headline paragraphs 1 through 6)

JAKARTA (Reuters). -The cost of carbon capture and storage (CCS), in Indonesia, could be as high as $500 million according to Pertamina, a top official from the state oil company.

Pertamina signed a memorandum to understand with Exxonmobil at the COP26 summit, last week. This was in order to explore ways that CCS can be used in Southeast Asia’s biggest country.

CNBC Indonesia’s Daniel Purba told CNBC Indonesia that the Pertamina senior vice president for corporate strategy said, “Our provisional estimate of investment needs is approximately $500 million. This excludes operating costs which will be incurred while CCS operations are ongoing.”

Purba stated that CCS facilities will likely be installed in Indonesia’s Gundih and Sukowati fields in Bojonegoro in Central and East Java, respectively.

Exxonmobil’s spokesperson didn’t immediately reply to my request for comment.

Pertamina would have to create a four-kilometer (2.49 mi) gas pipeline that runs from Gundih, to a reservoir to inject carbon and then another 30-km from Sukowati.

CCS is a technology that traps emissions and places them underground. However, it has not reached the stage of commercialization.

CCS supporters see it as crucial to meet net zero emission and to enable large-scale, economic hydrogen production. CCS, according to critics, will increase the lifespan of polluting fossil fuels.

Indonesia is the eighth largest carbon-emitter in the world.