Carbon Capture in Coal-Fired Power Plant for Cleaner Energy Management in Indonesia

Abstract

Indonesia faces a significant challenge in transforming its power sector to meet the national target of achieving Net Zero Emissions (NZE) by 2060. The country’s heavy reliance on coal for base-load electricity generation primarily due to its low cost and domestic availability represents a significant barrier to achieving decarbonization goals. Although global energy trends are shifting toward renewable and low-carbon sources, coal remains a dominant part of Indonesia’s energy mix. In this context, the adoption of transitional energy management such as Carbon Capture and Storage (CCS), particularly Post-Combustion Carbon Capture (PCC), is essential for reducing carbon dioxide (CO₂) emissions while ensuring energy reliability and economic stability throughout the transition period. This study examines the technical and economic feasibility of applying PCC technology at a subcritical coal-fired power plant (CFPP) by integrating the flue gas streams from two 315 MW units in Banten, Indonesia. Each unit emits flue gas containing approximately 14.3% CO₂, with a target capture efficiency of 90%. The research methodology includes literature review, case study analysis, and process simulation using Aspen HYSYS V12. Technical and economic data are drawn from relevant literature and previous PCC implementation cases in CFPPs. The simulation evaluates the integration of a single PCC unit for two combined flue gas sources and calculates both operational and capital costs. The simulation results indicate that the integrated PCC configuration reduces total capital expenditure (CAPEX) from USD 365 million to USD 334 million when compared to the combined cost of individual CCS installations. It also achieves a significantly lower Levelized Cost of Electricity (LCOE), at approximately USD 88.6/MWh, compared to USD 103.6–105.2/MWh in individual unit configurations. In order to attain an IRR target 11%, the integrated system requires a carbon tax of USD 57/tCO₂, which is lower than the USD 73/tCO₂ needed for the single-unit CCS scenario. These outcomes indicate the economic benefits of integrated CCS implementation in advancing Indonesia’s transition toward a low-carbon power generation sector.