Otway Silva - Dellyn Carbon Project

Otway Silva - Dellyn Carbon Project is a plantation forestry project located approximately 10km west of Simpson and 45km southwest of Colac in Victoria's Western District. It was registered in April 2023 and initially covered 381.47 hectares, with a variation adding more land to the project area in August 2023.

Plantation forestry projects involve establishing and maintaining a new plantation forest, or converting a short-rotation plantation to a long-rotation one, specifically for the commercial harvesting of wood products. To comply with the methodology standard requirements, trees must be planted at a sufficient stocking density to achieve true forest cover, which typically means reaching at least 2 meters in height and a 20% canopy crown cover at maturity.

The Simpson and wider Corangamite Shire areas are historically well known for intensive dairy farming, agriculture, and growing commercial forestry operations. The region experiences a temperate climate with high rainfall, averaging 800-1000mm annually. The local soils are highly fertile, typically consisting of rich volcanic basalts, clay loams, and limestone, which are exceptionally suited for commercial timber growth.

This project sequesters carbon by establishing and maintaining a new plantation forest for commercial harvesting. Interestingly, the project is part of a broader local investment by the proponent, Otway Silva Pty Ltd, which is backed by MEAG, the asset management arm of the German insurance group Munich Re. In 2022, MEAG acquired a 17,000-hectare plantation estate from Midway Limited for $154.1 million and committed a further $200 million for the development of new hardwood plantations across south-west Victoria. Midway Plantations continues to manage the estate alongside Otway Silva as an agent for the project.