Singapore and Indonesia signed three new agreements on 13 June covering cross-border electricity trade, collaboration on carbon capture and storage (CCS), and setting up a joint sustainable industrial zone (SIZ).
The first deal on cross-border electricity trade builds on previous agreements between the two countries, and reinforces Singapore's target to import around 6GW of low-carbon electricity by 2035 and Indonesia's goal to export 3.4GW of low-carbon power by the same year. Singapore and Indonesia will facilitate the necessary policies, regulatory frameworks and business arrangements for cross-border electricity trade within 12 months, Singapore's trade and industry ministry said.
Under the second agreement on CCS, the countries will work towards a framework that would enable cross-border CCS to leverage Indonesia's abundant carbon storage potential — something Singapore lacks.
Indonesia previously announced a CCS project in collaboration with BP in Papua Barat province, which aims to capture around 15mn t of CO2. And it has signed a $15bn agreement with ExxonMobil to sequester 3mn t/yr of CO2.
The third new agreement supports the development of green industrial areas in Indonesia's Bintan, Batam and Karimun region — known collectively as BBK. The SIZ will incorporate low-carbon energy and battery storage, according to Indonesian energy ministry ESDM. The Singapore and Indonesia governments will invest more than $10bn in developing a solar panel supply chain, patent CCS technologies and pioneer green industrial areas, the ESDM said.
