Idemitsu Kosan, Lam Son Sugar Cane Joint Stock Corporation and Sagri have entered into an agreement to jointly implement a project to generate carbon credits from sugarcane fields in Thanh Hoa Province, Vietnam.

The project aims to promote environmentally regenerative agriculture in sugarcane fields cultivated by Lasuco's contract farmers by applying Sagri's satellite analysis technology which monitors and reduces Greenhouse Gases such as nitrous oxide with the aim of registering carbon credits. The demonstration project will commence in 2025 with a view to commercialisation in 2026.

On December 19, 2024, the signing ceremony for the implementation contract of the Lam son sugarcane material are carbon emission reduction project.

In the demonstration, monitoring using Sagri's satellite analysis technology will be applied to approximately 500 hectares of farmland operated by Lasuco's contract farmers to practice environmentally regenerative agriculture. Sagri’s satellite analysis technology monitors soil conditions and crop growth on farmland based on satellite data.

This technology can be used to optimise the type, amount, and timing of fertiliser application, which in turn is expected to help reduce greenhouse gas emissions and to improve work efficiency. Specifically, the satellite analysis technology will be used to reduce the volume of chemical fertilisers applied to the soil and to increase soil carbon sequestration by reducing the volume of chemical fertilisers applied and by making more appropriate use of organic fertilisers, and in turn to verify the reduction of Greenhouse Gases and enabling carbon credit registration.

If a sufficient volume of Greenhouse Gases emission reductions is confirmed through the Demonstration, a carbon credit verification procedure will be carried out by applying the methodology for improving agricultural land management (VM0042) defined by Verra, which operates the world’s leading carbon credit program. The aim is to further commercialise and generate carbon credits from 2026 onwards.

The area of farmland covered by the project will be expanded to approximately 8,000 hectares. The project will also aim to register carbon credits using Verra’s VM0042 methodology for improving farmland management. If the project is certified and registered by Verra, it will be the first project in Vietnam to be registered under VM0042 applying this methodology.