Otway Silva - Dellyn Carbon Project

Otway Silva - Dellyn Carbon Project is a plantation forestry project located in the Corangamite Shire of south-west Victoria, approximately 15km inland from the coastal town of Port Campbell. Registered in April 2023, the project initially covered 381 hectares, though subsequent variations in August 2023 suggest the project area has expanded. The site sits within the productive Heytesbury settlement region, an area historically cleared for dairy farming but now increasingly utilized for commercial timber production due to its reliable climate.

The project operates under the Carbon Credits (Carbon Farming Initiative, Plantation Forestry) Methodology Determination 2022. This methodology allows for the establishment of new plantation forests on land that has been used for agriculture (typically grazing or cropping) for at least five years. Unlike environmental plantings, this method permits commercial harvesting; carbon credits are calculated based on the long-term average carbon stocks sequestered by the trees over rotational harvest cycles. The project specifically involves establishing hardwood plantations, likely Tasmanian Blue Gum (Eucalyptus globulus), which are managed for woodfibre production.

Environmentally, the region is characterized by a high-rainfall maritime climate, typically exceeding 800mm annually, which is ideal for rapid tree growth. The landscape consists of dissected plains with soils that are generally fertile, including texture-contrast soils (Chromosols) and structure-rich volcanic soils (Ferrosols) common to the Western District's volcanic plains.

A key feature of this project is its corporate structure. The proponent, Otway Silva Pty Limited, is a special purpose vehicle established by MEAG, the asset manager for global reinsurer Munich Re. In 2022, Otway Silva acquired a 17,000-hectare plantation estate from Midway Limited for $154.1 million and committed an additional $200 million to develop new plantations. Midway Plantations Pty Ltd remains the active manager of the trees, overseeing establishment and harvest, with the woodfibre destined for export through Midway’s facilities in Geelong or Portland.