McKellar Carbon Project 3

McKellar Carbon Project 3 is a soil carbon sequestration project located approximately 5 kilometers northeast of the historic town of Penola in the Limestone Coast region of South Australia. Registered on June 17, 2022, the project currently covers a project area of 135.47 hectares. It is managed by Agriprove Solutions, a prominent developer in the Australian soil carbon sector.

The project operates under the Estimation of Soil Organic Carbon Sequestration using Measurement and Models (2021) methodology. This method requires landholders to implement new management activities, such as the application of nutrients to address material soil deficiencies, altering stocking rates, or establishing multi-species pastures, to increase the amount of carbon stored in the soil. To generate credits, the project must demonstrate a measurable increase in soil carbon stocks over time compared to a baseline, verified through rigorous soil core sampling (typically to a depth of one meter) and modelling.

Regionally, the Penola and Coonawarra area is renowned for its premium viticulture and livestock grazing industries. The landscape is characterized by a "reliable rainfall" climate, receiving approximately 650mm annually, which supports productive agriculture. The soil profile in this specific vicinity is famous for its "Terra Rossa" (red clay loam over limestone) and sandy loams over calcrete, which are highly valued for their drainage and fertility.

A notable update to the project occurred on May 7, 2024, when a variation was filed to remove certain areas from the project boundary, likely to refine the crediting area to the most suitable land. The specific activity listed for this project involves applying synthetic or non-synthetic fertilisers to correct nutrient deficiencies, a strategy often paired with pasture improvement to boost plant growth and root biomass, thereby driving carbon into the soil.