Otway Silva 2024 Carbon Project_1

Otway Silva 2024 Carbon Project_1 is a plantation forestry project located near Simpson, approximately 50km southwest of Colac in the Otway region of Victoria. It was registered in December 2023 and covers 877.89 ha.

Plantation forestry projects involve establishing a new plantation forest or avoiding the conversion of existing plantations to non-forested land for the commercial harvesting of wood products. Standard requirements typically dictate that trees must be planted at a sufficient stocking density to achieve forest cover, generally defined as having the potential to reach at least 2 meters in height and 20% canopy cover at maturity.

The Otway region is well known for dairy farming, livestock grazing, and commercial forestry operations. The environment experiences a temperate climate with high rainfall, providing excellent conditions for timber growth. Soils in this region are quite variable but commonly feature duplex clays, granitic sandy loams, and basalt-derived earth.

This project sequesters carbon by establishing and maintaining a new plantation forest. Since its inception, the project footprint has grown, with land area variations successfully adding areas to the project in both March and June of 2024. The project's proponent, Otway Silva Pty Limited, is backed by MEAG, the asset management arm of Munich Re, which previously committed significant capital to acquire a $154.1 million plantation estate to develop new hardwood plantations in the region. Midway Plantations Pty Ltd, one of Australia's largest woodfibre processors, serves as the project's agent and manager.