Daewoo Engineering & Construction Achieves First Carbon Credit Revenue from Hydropower Project in Pakistan

Panoramic View of Patrind Hydroelectric Power Plant in Pakistan

Daewoo Engineering & Construction has fired the starting shot for its entry into the global eco-friendly energy market by successfully issuing and selling carbon credits through the Patrind hydropower plant project in the Kashmir region of Pakistan.

Carbon credits refer to the rights to emit a certain amount of six major greenhouse gases over a specified period. The government sets an annual emission allowance and allocates carbon credits to companies. If emissions are below the allocated amount, the excess credits can be sold on the market; if emissions exceed the allowance, companies must purchase additional credits from the market.

The Patrind hydropower plant project in Pakistan is a public-private partnership jointly promoted by Daewoo Engineering & Construction and the Korea Water Resources Corporation. A special purpose company (SPC) was established locally in Pakistan to carry out the project, with Daewoo Engineering & Construction investing 20% equity and participating in construction. The construction was completed in November 2017, and the plant currently produces approximately 630 GWh of electricity annually.

The Patrind hydropower plant registered its project with the UN Clean Development Mechanism (CDM) in April 2013 and was recognized for greenhouse gas reduction performance based on power generation from 2017 to 2019, receiving a total of 418,000 tons of carbon credits. The issued carbon credits were converted into Korea Offset Credits (KOC) for trading on the Korea Exchange (KRX), and were sold over four months from September to December last year, generating approximately 12.6 billion KRW in revenue.

A Daewoo Engineering & Construction official stated, "Considering the power generation of the Patrind hydropower plant, there is an annual carbon reduction effect of about 270,000 tons," adding, "In line with the advent of the carbon-neutral era and the spread of ESG management, we plan to continuously expand eco-friendly and renewable energy-related businesses."

This content was produced with the assistance of AI translation services.