ERIA Holds the 3rd East Asia Energy Forum Virtually
Jakarta, 17 November 2020: The 3rd East Asia Energy Forum (EAEF) was organized as a virtual event by the Economic Research Institute for ASEAN and East Asia (ERIA), the Energy Research Institute Network (ERIN), and the ministry of Industry, Viet Nam.
The Forum, titled ‘Carbon Capture Utilization and Storage (CCUS), and Carbon Recycling in ASEAN’ started with opening speeches by H.E. Mr Hoang Quoc Vuong, Deputy Minister of Industry and Trade, Viet Nam and H.E. Dato Lim Jock Hoi, Secretary-General of ASEAN. Keynote speeches were given by H.E. Dato Seri Setia Dr. Awang Haji Md Hussein, Minister of Energy, Brunei Darussalam; H.E. Mr Suy Sem, Minister of Mines and Energy, Cambodia; H.E. Dr Khammany Inthirath, Minister of Energy and Mines, Lao PDR; H.E. Mr Arifin Tasrif, Minister of Energy and Mineral Resources, Indonesia; H.E. Mr Koichi Munekiyo, Parliamentary Vice-Minister of Economy, Trade and Industry, Japan; and Dr Prasert Sinsukprasert, Director General of Department of Alternative Energy Development and Efficiency, Ministry of Energy, Thailand on behalf of H.E. Mr.Supattanapong Punmeechow, Deputy Prime Minister and Minister of Energy, Thailand.
EAEF3 marked a great success with insightful presentations from the Institute of Energy Economics Japan (IEEJ), the New Energy and Industrial Technology Development Organization (NEDO), the Ministry of Economy, Trade, and Industry (METI), the Global Carbon Capture Storage Institute (GCCSI), the Mitsubishi Research Institute (MRI), the Japan Petroleum Exploration Co., Ltd. (JAPEX), the Environmental Consulting Department, Japan Nus Co., Ltd., the National University of Singapore (NUS), Pertamina, Indonesia, the Asian Development Bank (ADB), Mitsubishi UFJ Bank, and the Clean Energy Ministerial CCUS, with active participation from the audience.
The result of EAEF3 was summarized as ‘Reflections of EAEF 3’ and highlighted in the joint statement of the EAS Energy Ministers Meeting and the Chairman’s Statement of the East Asia Summit in November 2020 as follows:
Joint Statement of the 14th EAS Energy Ministers Meeting
- The Ministers noted the progress of implementation of the rolling 3-year Roadmap on EAS Mid-Term Energy Policy Research for 2019-2021 and appreciated the contributions of ERIA towards energy policy research activities under the EAS energy cooperation platform. They welcomed the successful convening of the 3rd East Asia Energy Forum (EAEF 3) focusing on CCUS on 17 November 2020 organized by ERIA and Viet Nam and noted the “Reflections from the 3rd East Asia Energy Forum (EAEF3)”.
Chairmans Statement of the 15th East Asia Summit
- We welcomed the progress made in EAS energy cooperation, including the successful conduct of distributed energy system audits in select ASEAN Member States led by Japan, the ongoing feasibility study on wind power with energy storage systems in select ASEAN countries led by the Republic of Korea, and the evaluation of carbon emission reduction through mobility electrification and introduction of alternative biofuels led by the Economic Research Institute for ASEAN and East Asia (ERIA). We noted the expanded EAS initiatives on the promotion of natural gas, hydrogen and carbon recycling, and carbon capture, utilization, and storage (CCUS) and looked forward to the initiatives contributing to energy transitions in the region. We welcomed the contribution of ERIA to the implementation of the EAS Mid-Term Energy Policy Research Roadmap for the 3 ECTF workstreams. We welcomed the successful convening of the 3rd East Asia Energy Forum (EAEF 3) focusing on CCUS on 9 November 2020 organized by ERIA and Vietnam, and the EAS New Energy Forum held on 24th September 2020 organized by China. We encouraged ERIA to continue high-quality policy-based research and pragmatic recommendations reflecting the regional energy situation after COVID-19.
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The meeting was divided into two sessions: the first session discussed Carbon Recycling with Prof Jun Arima, Senior Policy Fellow at ERIA as Moderator. The second session focused on the current situation of CCUS and future perspectives, with case studies regarding CCUS project development in Indonesia, and a panel discussion led by MRI.
In the first session, representatives from Japan, Mr Hideaki Tanaka, NEDO, and Mr. Hiroshi Tsuchiya, METI, elaborated on technology innovation for Carbon Recycling. This technology is an element of CCUS and can be adapted to the countries that have insufficient EOR/EGR (Enhanced Oil and Gas Recovery) technologies. Dr Saleh Abdurrahman, from the Ministry of Energy and Mineral Resources, Indonesia, and Dr Twarath Sutabuthr from the Ministry of Energy, Thailand, expressed interest to develop this technology in their countries. Mr Saleh stated that Indonesia already has several policies that support the adoption of this technology in Indonesia. For Thailand, Carbon Recycling development has not been integrated into the 2030 country roadmap yet. The session highlighted key challenges facing deployment of this technology within the region, including cost reduction, demand creation, and international collaboration. International and regional support will be crucial to encourage more research. Also, as part of climate actions to reduce global carbon emission, the targets and actions should go beyond 2030.
The second session consisted of two parts. The first focused on CCUS promotion with presentations by Mr Ian Havercroft from Global Capture and Storange institute (GCCSI) and Ms Kikuko Shinchi, from MRI. Mr Havercroft emphasized policy approachs to promote CCUS, and learning from other advanced countries, such as European, Japan, the US, and Australia. He made several suggestions for consideration by Asian nations regarding CCUS deployment, such as allowing sufficient time for developing legislation, particularly in light of wider policy commitments. Ms Shinchi focused more on CCUS business cases. She stated that CCUS business development can build upon existing frameworks. Moreover, establishing bilateral MOUs on CCUS cooperation is essential.
Next, a representative from JAPEX, Mr Toshiyukki Anraku, presented the results of a feasibility study for JCM (Joint Credit Mechanism) CCUS in two locations in Indonesia: Niru, South Sumatera, and Sukowati, Central Java. This project is a bilateral project between Japan (JAPEX) and Indonesia (Pertamina EP and LEMIGAS). In order to promote JCM CCUS commercialization in Indonesia, Mr Anraku pointed out that Indonesia needs to improve in several areas, such as long-term vision and strategy, policy readiness, technology enhancement, commercial environment, and public acceptance.
Dr Yucho Sadamichi, from Japan Nus Co., Ltd. presented a case study conducted in Indonesia regarding a CCUS-EOR and CO2 pipeline project, and CCUS and Power Generation Development, Gundih Project. He explained that the feasibility study has been conducted since early 2020, and the site has unique features that potentially can expand to be the first CO2 credit from CCUS through JCM. Again, private sector participation in CCUS is important to sustain the project.
During the panel discussion, led by Ms Kikuko Shinchi from MRI, discussions highlighted legal frameworks, collaborative approaches, and research innovation as essential. Most participants raised points on international knowledge sharing and capacity building to succeed in the commercialization of CCUS technology and to overcome the challenges.
In closing remarks, Prof. Nishimura emphasized that (1) CCUS and Carbon Recycling are absolutely crucial technologies for the ASEAN region to achieve carbon neutrality in the future, without neglecting energy security and affordability for regional energy choice. As the volume of fossil fuels will continue to increase in the future, the energy mix should be supported, and deployment of CCUS and Carbon Recycling technologies should be considered; (2) It is necessary to promote RD&D (Research, Development and Demonstration) efforts of CCUS and Carbon Recycling technology to improve its performance and cost competitiveness for long-term planning beyond 2030; (3) The presence of supporting policy actions on CCUS and Carbon Recycling deployment is crucial; and lastly (4) Promoting regional and international cooperation in this regard should be encouraged. ERIA will continuously deliver pragmatic policy messages reflecting the regional energy reality, CCUS and Carbon Recycling as they are priority areas.