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

The agreement follows Indonesia’s presidential regulation on CCS issued on January 30, which will allow CCS operators to set aside storage capacity for international carbon dioxide ( CO2 )

With the letter of intent, Singapore and Indonesia affirm the importance of CCS as a decarbonization pathway, and the potential of CCS to enable sustainable industrial activities and generate new economic opportunities.

According to the Global CCS Institute, an international think-tank focused on CCS deployment, the global CCS market is expected to grow significantly until 2027, driven by the increasing need to reduce greenhouse gas emissions.

The total market size is expected to reach US$7.5 billion by 2027, with the Asia-Pacific region expected to dominate the market due to industrial growth, increasing demand for energy in the region and significant investments in innovation around CCS technologies.

The agreement was signed by Keith Tan, Singapore’s deputy secretary ( for industry ) of the Ministry of Trade and Industry, and Jodi Mahardi, Indonesia’s deputy coordinating minister for Maritime Sovereignty and Energy.

“Singapore is the first country to sign a letter of intent with Indonesia after its presidential regulation to allow cross-border CCS was announced,” Tan says. “And with this letter, Singapore and Indonesia can become the pathfinders to catalyze deployment of cross-border CCS projects in Southeast Asia.”

A working group comprising Singapore and Indonesia government officials will now commence work towards a legally binding bilateral agreement that will enable the cross-border transport and storage of CO2 between Singapore and Indonesia.