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 covers 381.47ha, 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. Standard requirements include planting trees at a sufficient stocking density to achieve true forest cover, typically reaching at least 2 meters in height and a 20% canopy crown cover at maturity.

The Simpson and wider Corangamite Shire areas are well known for intensive dairy farming, agriculture, and growing forestry operations. The region experiences high rainfall (averaging 800-1000mm annually) and features highly fertile soils, typically consisting of rich volcanic basalts, clay loams, and limestone.

This project sequesters carbon by establishing and maintaining a new plantation forest for the commercial harvesting of wood products. Interestingly, this 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. Managed alongside Midway Plantations, the company has recently purchased several former dairy farms along a 15km stretch in this exact district to expand their commercial blue gum plantation estate. In 2022, MEAG acquired a 17,000-hectare plantation estate from Midway Limited for $154.1 million, committing a further $200 million for the development of new hardwood plantations across south-west Victoria.