JAKARTA, June 13 (Reuters) - Indonesia and Singapore

signed initial deals on Friday to develop cross-border trade in

low carbon electricity and collaborate on carbon capture and

storage, ministers from both countries said in Jakarta.

The electricity deal reaffirmed an earlier agreement to

export solar power from Indonesia to Singapore, with a group of

companies companies planning to build plants and grid

infrastructure to generate and transmit the power.

The memorandum of understanding signed by the two

countries says they will aim to draw up policies, regulatory

frameworks and business arrangements that will enable Indonesian

power to be delivered to Singapore.

Indonesia expects to export 3.4 gigawatts of low-carbon

power by 2035, according to a presentation slide shown by

Indonesia's energy minister Bahlil Lahadalia.

In another MOU, the two countries said they would look into

drawing up a legally-binding agreement for carbon capture and

storage that would allow cross-border projects to go ahead.

If successful, it will be the first such project in

Asia, said Singapore government minister Tan See Leng.

Energy firms BP, ExxonMobil ( XOM ), and Indonesia's state

company Pertamina are already developing CCS projects in

Indonesia.

With its depleted oil and gas reservoirs and saline aquifers

capable of storing hundreds of gigatonnes of CO2, Indonesia has

allowed CCS operators to set aside 30% of their storage capacity

for carbon captured in other countries.

The two countries also signed a deal for the development of

sustainable industrial zones on several Indonesian islands near

Singapore, including Batam, Bintan and Karimun.

Bahlil said the deals could bring in more than $10 billion

of investment from the manufacturing of solar panels, the

development of CCS projects and potential investment in

industrial estates.