Perpustakaan Digital ITB

This study examines the economic impact of storage fees and royalties on the feasibility of Carbon Capture and Storage (CCS) projects and explores the potential implementation of carbon pricing in Indonesia. A case study was conducted based on the business model of Company X CCS as a third-party carbon storage operator, assessing two scenarios: (1) CO? transport via marine shipping to the Bintuni Basin and (2) CO? transport via subsea pipelines to the Arafura Basin. The analysis covers storage capacity estimation, CAPEX and OPEX projections, royalty calculations as part of non-tax state revenue (PNBP), and potential revenue from the Voluntary Carbon Market under the Verified Carbon Standard (VCS). Economic assessment using Net Present Value (NPV), Internal Rate of Return (IRR), and Pay Out Time (POT) shows all base-case scenarios yield negative NPV due to high CAPEX and OPEX compared to revenues at current market storage fees and carbon credit prices. Sensitivity analysis identifies storage fee as the most influential factor, with economic thresholds of USD 33–71/tCO? depending on the scenario. Carbon credits contribute significantly (23% in Case 1 and 30% in Case 2), lowering the storage fee threshold and improving NPV, with a break-even carbon credit price of USD 59/tCO?, within the lower range of current market prices. Royalty rates that can be considered economically acceptable are in the range of 5–14%, balancing fiscal returns and investment viability. These results indicate that CCS projects can be financially viable both with and without carbon trading if cost structures and revenue s