I enabled hibernate and it works. Also I can see hibernate option in the system menu and in the power setting as an option of "When power is critically low". However I cannot see hibernate in the power setting as an option of "When the lid is closed" which has only "Suspend" and "Do nothing" options. Can I add hibernate as an option for "When lid is closed" setting?
Open dconf editor. (If not installed run
sudo apt-get install dconf-tools in the terminal)
Navigate in dconf editor to: org>gnome>settings-daemon>plugins>power
I here there are options for things such as when the lid closes with all options. Change to Hibernate.