Implementation of CCUS Technology in the Development of Steam Power Plants: Challenges and Opportunities in the Era of Energy Transition

Abstract

Climate change and rising CO₂ emissions from coal-fired power plants pose significant challenges to the sustainable energy transition. Carbon Capture, Utilization, and Storage (CCUS) offers a solution by capturing up to 95% of CO₂ emissions from industries and power plants. This study evaluates the opportunities and challenges of CCUS implementation in Indonesia from technical, economic, and policy perspectives using qualitative (literature review) and quantitative (emission reduction and economic impact analysis) methods. The results indicate that CCUS can reduce coal power plant emissions by 203.3 million tons of CO₂ per year, but it faces challenges such as high costs, potentially increasing electricity prices by up to 91%. Additionally, Indonesia’s carbon tax policy has not been fully implemented, limiting the economic benefits of CCUS. In conclusion, while CCUS has great potential to support the sustainable energy transition, its success depends on stronger policy support, investment incentives, and infrastructure readiness. A collaborative strategy between the government, industry, and research institutions is essential to develop regulations that promote CCUS implementation at a lower cost.