Otway Silva 2024 Carbon Project_1

Otway Silva 2024 Carbon Project_1 is a plantation forestry project located in the Corangamite Shire, approximately 12km southwest of Simpson and roughly halfway between Colac and Port Campbell in Victoria's Western District. It was registered in December 2023 and initially covers an area of 877.89 hectares, with subsequent area variations adding more land to the project boundary in March and June 2024.

Plantation forestry projects generate carbon credits by establishing and maintaining a new plantation forest, or by avoiding the conversion of existing short-rotation plantations to non-forested land. The standard requirements for this methodology dictate that the forest must be managed specifically for the commercial harvesting of wood products. Additionally, trees must be planted at a sufficient stocking density to achieve lasting forest canopy cover, typically meaning they must reach at least 2 meters in height and provide 20% canopy cover at maturity.

The Corangamite region and the area surrounding Simpson are well known as some of Australia's most productive dairying hubs, alongside supporting broadacre cropping, beef and sheep grazing, and extensive commercial forestry operations. The local environment features a temperate climate with high, reliable rainfall. Soils in this region are highly fertile, predominantly comprising rich volcanic basalts, clay loams, and duplex clays, making the land exceptionally suitable for agriculture and commercial timber species like Tasmanian blue gum.

This project sequesters carbon by establishing a new plantation forest specifically for commercial wood products. Interestingly, the project proponent, Otway Silva Pty Limited, is an entity backed by MEAG, the asset management arm of the German insurance giant Munich Re. In 2022, this group acquired a 17,000-hectare Victorian plantation estate from Midway Limited for $154.1 million and committed a further $200 million to expand new hardwood plantations across south-west Victoria. Midway Plantations Pty Ltd continues to serve as the agent and project manager, leveraging its extensive experience as one of Australia's major woodfibre processors and exporters.