McKellar Carbon Project 1

McKellar Carbon Project 1 is a soil carbon sequestration project located approximately 5km northeast of Penola in the Limestone Coast region of South Australia. Registered in June 2022, the project covers 220 hectares of agricultural land. The surrounding Coonawarra region is world-renowned for viticulture, though the area also supports significant livestock grazing and cropping operations.

This project operates under the 2021 Soil Carbon methodology, which credits landholders for measured increases in soil organic carbon stocks. To generate credits, the project must implement a "new or materially different" land management activity. In this case, the specific activity involves applying synthetic or non-synthetic fertilizers to address nutrient deficiencies. By correcting these deficiencies, the project aims to stimulate greater pasture biomass and root growth, which in turn draws more carbon from the atmosphere and stores it in the soil profile.

The environmental conditions in the Penola district are well-suited to soil carbon projects. The region enjoys a Mediterranean climate with a reliable average annual rainfall of approximately 600mm to 700mm. The soils in this specific locality are often the distinctive Terra Rossa (red loam over limestone) or sandy loams over clay. These soil types are generally productive but can be highly responsive to nutrient management, allowing for rapid improvements in soil health and carbon sequestration rates when managed correctly.