LX International announced Thursday that its Hasang hydropower project in Indonesia has received key regulatory approval, enabling the company to monetize carbon reduction credits through international trading under the Paris Agreement.
The Indonesian Ministry of Environment approved the Hasang hydropower project in January as a carbon reduction initiative under Article 6.4 of the Paris Agreement. This marks the first project sanctioned by the Indonesian government since the framework’s implementation in 2021.
The 41-megawatt Hasang plant, located in northern Sumatra, generates clean, carbon-free electricity using natural water head and provides power to approximately 150,000 Indonesian households each year.
Article 6.4 establishes a UN-led mechanism that facilitates the transfer and utilization of greenhouse gas reduction credits between countries, superseding the Kyoto Protocol’s Clean Development Mechanism.
With this recent approval, LX International is now authorized to commercialize its Indonesian carbon credits.
Following completion of subsequent procedures, including United Nations certification, the company intends to either utilize the credits domestically or sell them on the global carbon market.
LX International plans to develop a carbon credit portfolio totaling approximately 310,000 metric tons annually from renewable energy projects throughout Indonesia. This includes 210,000 tons from the Hasang plant and 100,000 tons from a biogas power generation facility located at a palm plantation.
The company also intends to transition emissions reductions from its palm farm biogas power plant in West Kalimantan to the Paris Agreement framework. The facility captures biogas from wastewater generated during palm oil processing and converts it into electricity.
andreahaneu
