Otway Silva 2024 Carbon Project_2

Otway Silva 2024 Carbon Project_2 is a plantation forestry project located in the Colac Otway and Corangamite local government areas of south-west Victoria, spanning locations approximately 15km to 50km southwest of the major town of Colac. It was registered on 21 May 2024 and covers a project area of 1,087.32 hectares.

Plantation forestry projects generate Australian Carbon Credit Units (ACCUs) by establishing new commercial plantations or converting existing short-rotation plantations (such as pulpwood) to long-rotation forests (such as sawlogs). Under the Carbon Credits (Carbon Farming Initiative-Plantation Forestry) Methodology Determination 2022, the forest must be actively managed for the commercial harvesting of wood products while ensuring the trees meet specific canopy cover and stocking density requirements.

The Colac and Corangamite region is a highly productive agricultural zone well known for intensive dairy farming, beef cattle grazing, and extensive commercial forestry operations. The regional environment is characterised by a temperate, high-rainfall climate, with some parts of the Otway Ranges receiving over 1,500mm of annual rainfall. Soils in this area typically consist of rich volcanic basalts, friable clay loams (such as Kurosols and Chromosols), and deep earths, making them highly suitable for commercial timber species like Tasmanian blue gum and Radiata pine.

This project sequesters carbon through two main activities: establishing and maintaining a new plantation forest, and converting an existing short-rotation plantation forest to a long-rotation plantation forest for commercial harvesting.

Interestingly, this project involves Midway Plantations Pty Ltd as a key participant and agent. It forms part of a major strategic partnership in which the proponent, Otway Silva Pty Limited, acquired Midway Limited's 17,000-hectare Victorian plantation estate for $154.1 million. Furthermore, Otway Silva has committed an additional $200 million to develop new hardwood plantations managed by Midway across south-west Victoria.